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IT Stocks in Focus Today: Indian IT shares tumbled on Friday, September 26, as investors digested Accenture Plc’s fourth-quarter and full-year fiscal 2025 results. The Nifty IT index mirrored global IT trends, with Infosys, LTIMindtree, and OFSS leading the declines.

At 10:00 am IST, Infosys shares fell 1.6 per cent to Rs 1,460.15, LTIMindtree dropped 1.6 per cent to Rs 5,128.60, and OFSS declined 1.6 per cent to Rs 8,767.40. Wipro and Tech Mahindra lost 1.4 per cent each, touching Rs 238.60 and Rs 1,423.75, respectively. HCL Tech slipped 1.14 per cent to Rs 1,407.05, while TCS shares fell 1 per cent to Rs 2,930, marking a 52-week low.

Accenture reported quarterly revenues of $17.6 billion, reflecting 7 per cent year-on-year growth in U.S. dollars and 4.5 per cent in local currency. Full-year revenues stood at $69.7 billion, also up 7 per cent, slightly above analyst expectations. Accenture shares closed at $232.56, down 2.73 per cent, while Infosys ADR dropped 2.9 per cent and Wipro ADR fell 1.84 per cent.

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The company recorded $21.3 billion in new bookings for Q4, taking full-year bookings to $80.6 billion. Generative AI-related bookings contributed $1.8 billion in Q4 and $5.9 billion for the year, highlighting growing enterprise adoption of AI solutions.

Accenture’s GAAP diluted EPS for Q4 fell 15 per cent to $2.25, while adjusted EPS rose 9 per cent to $3.03. For the full fiscal year, GAAP EPS increased 6 per cent to $12.15, and adjusted EPS grew 8 per cent to $12.93. Free cash flow for Q4 was $3.8 billion, bringing the full-year total to $10.9 billion.

Operating margins showed mixed trends: Q4 GAAP operating margin declined 270 basis points to 11.6 per cent, while adjusted operating margin improved 10 basis points to 15.1 per cent. Full-year GAAP margin fell slightly to 14.7 per cent, with the adjusted margin at 15.6 per cent.

Alongside earnings, Accenture unveiled a $865 million restructuring program spanning six months to realign its workforce and operations in line with rising demand for digital and AI-driven services.

Domestic brokerage Motilal Oswal noted that Indian IT companies are likely to mirror Accenture’s revenue trends and commentary. The brokerage highlighted three headwinds for the sector: muted demand, deflationary pressure from productivity gains such as Generative AI, and potential limits on onsite work due to uncertainties in H1B visa approvals.

Despite these challenges, valuations remain reasonable. Leading Indian IT companies are trading at their 10-year average P/E multiples and roughly 13 per cent below their 5-year average P/E. According to Motilal Oswal, a structural re-rating of the sector would depend on a new technology cycle and meaningful earnings upgrades.

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Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate affairs, with prior stints at Business ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.