Indian IT Stocks Surge on Strong Q2 Results, Visa Boost

India’s technology stocks are on a winning streak.
For the third straight session, the Nifty IT index climbed sharply, rising nearly 5% over three days as better-than-expected quarterly results and supportive comments on U.S. visa policies lifted investor mood.

On November 12, 2025, the index touched an intraday high of 36,911, up 2.16%, with all ten constituents trading in the green.
Tech Mahindra led with a 3.6% jump, followed by LTIMindtree, Mphasis, and TCS, each up about 3.5%.
Since November 10, the IT index has outperformed the broader Nifty 50, advancing 4.8% compared to a modest market rise.

Strong Q2 Results Fuel Optimism

Behind the rally is a wave of robust Q2 FY26 earnings.

Infosys reported an 8.6% year-on-year revenue increase to ₹44,490 crore and a 13.2% rise in net profit, prompting it to raise full-year guidance to 2–3% (from 1–3%).
The Bengaluru-based giant also announced a massive ₹18,000 crore share buyback and disclosed $3.1 billion in large deal wins, signaling confidence in its order pipeline.

Mid-tier firms shone even brighter:

Coforge delivered 5.9% constant-currency growth and expanded its EBIT margin to 14%.

Persistent Systems reported 17.6% year-on-year revenue growth, among the highest in the sector.

LTIMindtree crossed the ₹10,000 crore revenue milestone for the first time, clocking 5.6% sequential growth and margin expansion of 160 basis points to 15.9%.

While earnings momentum remains strong, analysts caution that macroeconomic headwinds and client budget cuts could keep near-term demand uneven.

Analysts See Value Despite Headwinds

Brokerages remain constructive on the sector’s long-term prospects.
Nuvama Institutional Equities has maintained ‘Buy’ ratings on seven key names including Coforge, Persistent Systems, Mphasis, LTIMindtree, Hexaware, TCS, and Infosys. The brokerage noted that valuations have now cooled to near their 10-year averages after a 15% correction.

“We expect the demand environment to stay challenging for another couple of quarters,” Nuvama noted, “but remain positive on the medium-term outlook as technology debt remains high across enterprises.”

Kotak Institutional Equities echoed the sentiment, observing that project cancellations are easing and demand trends are stabilizing, though recovery in discretionary spending remains critical to dispelling fears of a structural slowdown.

Trump’s Visa Signal Boosts Confidence

Adding to the optimism, President Trump’s remarks this week provided unexpected relief.
In a Fox News interview on November 12, he acknowledged that the U.S. lacks workers with “certain talents,” a subtle nod toward the continued need for skilled foreign professionals.

This came just two months after his administration implemented a $100,000 H-1B visa fee through an executive order in September 2025, a move that initially rattled India’s IT exporters.
Trump’s latest comments suggest a more balanced stance, easing fears of long-term restrictions on skilled Indian workers.

For major IT firms, which derive over 60% of their revenue from U.S. clients, clarity on visa policies is a major sentiment driver. Even small signals of flexibility can boost hiring visibility and help sustain margins.

Outlook: Hope with a Dose of Caution

Despite the sector’s rebound, experts advise restraint.
Trading volumes have been rising but remain below early-2025 levels, and valuations, though reasonable, still hover near their historical mid-range.
Analysts expect Q3 FY26 to be a make-or-break quarter as client budgets for 2026 get finalized.

In the medium term, high digital transformation demand, improving deal wins, and easing visa concerns could keep IT stocks in focus.
But any global slowdown or U.S. spending cuts might quickly test this optimism.

Disclaimer

This article is for informational purposes only and should not be considered investment advice. Readers should conduct their own research or consult financial professionals before making investment decisions.