IT Stocks to Buy Ahead of Q2 Results: TCS, HCL Tech and Mphasis Target Prices, Upside and Preview as Brokerages Split Between Buy, Add and Reduce

IT stocks to buy is a hot search ahead of the September quarter results, because the sector has fallen hard and brokerages are split on whether the setup is attractive. TCS closed at Rs 2,075 on 1 October and kicks off the earnings season on Thursday, 8 October, followed by HCL Tech on 12 October and Mphasis on 5 November.

If you are searching for IT stocks to add before Q2 results, this article covers the TCS target price, the HCL Tech target price and the Mphasis target price from Motilal Oswal, JM Financial and Nirmal Bang, the upside for each, the Q2 FY27 preview and constant currency growth expectations, Q1 FY27 results, deal wins and TCV, guidance, EBIT margin, the AI debate and the risks. Prices are 1 October closing levels, so recheck live prices. This article summarises brokerage views and is not a recommendation.

To use this list of IT stocks to buy, treat each target as one house's view, compare the upside with the downside case, and wait for the Q2 numbers before drawing a conclusion.

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IT Stocks to Buy: What Brokerages Say Before Q2 Results

Stock	1 October close	Brokerage view	Target	Move from close
TCS	Rs 2,075	JM Financial: Add	Rs 2,375	About +14.5%
TCS	Rs 2,075	Another brokerage: target as cited	Rs 2,320	About +11.8%
TCS	Rs 2,075	Nirmal Bang: Sell	Rs 1,581	About -23.8%
HCL Tech	About Rs 1,243	Motilal Oswal: Buy	Rs 1,450	+16.6%
HCL Tech	About Rs 1,243	JM Financial: Reduce	Rs 1,135	About -8.7%
Mphasis	Rs 2,250.20	Motilal Oswal: Buy	Rs 2,700	About +20%
Mphasis	Rs 2,250.20	JM Financial: Buy	Rs 2,645	About +17.5%

The HCL Tech price is implied from Motilal Oswal's 16.6% upside, and the moves from the close are my arithmetic on the cited targets. The spread is wide: the same stock has targets 28% to 50% apart, which is why a preview matters more than any single rating when screening IT stocks to buy. Choice Broking names TCS and Tech Mahindra among large caps and Coforge and Mphasis among mid-caps as its preferred ideas.

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Q2 FY27 Results Calendar for the IT Stocks to Buy

Company	Results date	Note
TCS	Thursday, 8 October	Kicks off the season; board to consider a second interim dividend
HCL Tech	Monday, 12 October	Guidance narrowing expected
Coforge and LTTS	23 October	Mid-cap and engineering services
Infosys	27 October	Possible trim to the top of guidance
Mphasis	5 November	Last of the group, with a strong deal pipeline

Dates for these IT stocks to buy are from the results calendar and company filings, so confirm them on the exchange websites.

Q2 Preview for IT Stocks to Buy: A Soft Quarter for Large IT, Better for Mid-Caps

JM Financial expects another soft quarter for Indian IT, with muted growth, AI disruption and macro uncertainty, and it sees margin expansion as limited because the rupee has moved only about 1% sequentially. Nirmal Bang sees no meaningful improvement in large-tier demand and expects mid-tier firms to outperform. Choice Broking forecasts FY27 as another subdued year, with AI productivity pass-throughs, pricing pressure and soft discretionary spending limiting reported growth. That backdrop shapes which IT stocks to buy and which to avoid.

Stock	Q2 growth expectation (constant currency, QoQ)	What else brokerages expect
TCS	About 0.5% (Motilal Oswal and HDFC Securities)	TCV of $8 billion to $10 billion; the Porsche deal unlikely to be included because of pending approvals
HCL Tech	2% (HDFC Securities) to 3% (Motilal Oswal)	Services guidance narrowing to 2% to 4% from 1.5% to 4.5%
Mphasis	Management guided to its best sequential growth in three years	Results on 5 November, so the preview is less settled

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TCS Target Price and Preview: A Large-Cap Among IT Stocks to Buy

TCS is the first of the IT stocks to buy to report and sets the tone for the group. In Q1 FY27 revenue was Rs 72,275 crore, up 13.9% in rupees, but in dollars it was flat at $7,624 million, and constant-currency growth was only 0.4% quarter on quarter and 3.2% year on year. Operating margin fell 130 basis points to 24.0% because of annual wage hikes, and net profit was Rs 13,349 crore, up about 4.6%.

TCS Q1 FY27 metric	Figure
Revenue	Rs 72,275 crore, up 13.9%
Constant-currency growth	0.4% QoQ, 3.2% YoY
Operating margin	24.0%, down from 25.3%
Net profit	Rs 13,349 crore, up 4.6%
Order book TCV	$9.5 billion, including an $800 million AI-led deal with SKF
Headcount	593,798, up 9,279 QoQ but down 19,271 YoY
Interim dividend	Rs 12

The TCS target price from JM Financial is Rs 2,375, about 14.5% above the 1 October close, while Nirmal Bang's Rs 1,581 is about 24% below it. The bull case among IT stocks to buy rests on deal wins and an AI order book, and the bear case on weak growth and wage-driven margin pressure. Watch the Q2 TCV figure and any change in demand commentary.

HCL Tech Target Price and Preview: The Most Debated of the IT Stocks to Buy

HCL Tech is the most debated of the three IT stocks to buy. In Q1 FY27 revenue was Rs 34,579 crore, up 13.9% YoY, with constant-currency growth of 2.6% YoY and a dip of 0.5% QoQ. EBIT margin was 16.9% after a 62 basis point restructuring cost, or about 17.5% excluding it, and net profit was Rs 4,624 crore, up 20.3%. Net new bookings of $2.41 billion were the highest ever for a first quarter.

HCL Tech guidance for FY27	Current	Expected change
Company revenue growth, constant currency	1% to 4%	Retained so far
Services revenue growth	1.5% to 4.5%	Narrow to 2% to 4%, midpoint unchanged
EBIT margin	17.5% to 18.5%	Q1 was 16.9%, so recovery is needed

JM Financial says the acquisition of HPE's telco business could add 70 to 80 basis points to IT services growth in FY27 and expects TCV of $3 billion to $3.5 billion. Even so, it holds a Reduce rating with a Rs 1,135 target, while Motilal Oswal's Buy rating carries a Rs 1,450 target. Consensus among 39 analysts is Hold with an average target of about Rs 1,264. The HCL Tech target price debate among IT stocks to buy is really about whether margins return to the guided band.

Mphasis Target Price and Preview: The Mid-Cap Pick Among IT Stocks to Buy

Mphasis is the mid-cap pick among IT stocks to buy. In Q1 FY27 revenue was Rs 4,384 crore, up 17.5% YoY and 3.3% QoQ, while dollar revenue of $471 million grew 2.1% sequentially and 8.3% YoY in constant currency. Profit was Rs 489.5 crore, up about 10.8%. Net new TCV of $461 million was the fifth straight quarter above $400 million, with 63% AI-led, and the pipeline rose 8% QoQ and 28% YoY.

Mphasis metric	Q1 FY27
Revenue	Rs 4,384 crore, up 17.5%
Constant-currency growth	2.1% QoQ, 8.3% YoY
Operating margin	14.8%, down 60 bps QoQ, within the 14.75% to 15.75% band
Net new TCV	$461 million, 63% AI-led
EPS	Rs 25.6
FY27 guidance	High single-digit to low double-digit constant-currency growth

Management expected Q2 to deliver its best sequential growth in three years. Motilal Oswal's Buy and Rs 2,700 target imply about 20% upside from Rs 2,250.20, and JM Financial's Rs 2,645 implies about 17.5%. The Mphasis target price rests on that growth acceleration, while cash conversion of about 80% of net income is a point to watch.

What to Watch Before Choosing IT Stocks to Buy

1. Constant-currency growth against the roughly 0.5% to 3% brokerages expect.
2. TCV and deal wins, especially AI-led deals.
3. EBIT margin after wage hikes, and HCL Tech's path back to 17.5%.
4. Guidance changes, including HCL Tech's narrowing and Infosys' possible trim.
5. Management commentary on the seasonally soft second half, furloughs and discretionary spending.
6. Headcount trends, with TCS having added its most staff in 15 quarters in Q1.

Risks Behind IT Stocks to Buy

AI disruption: AI-led productivity can pass savings to clients and shrink the revenue pool for IT stocks to buy.

Weak demand: Discretionary spending and deal conversion remain soft, especially for large-cap IT stocks to buy.

Margins: Wage hikes and limited rupee help can squeeze margins as TCS and HCL Tech showed in Q1, hurting IT stocks to buy.

Rating dispersion: Targets for the same stock differ by up to 50%, so estimates can swing after results.

Guidance cuts: A trimmed forecast can hit the stock even when the quarter is in line.

How Investors Can Approach IT Stocks to Buy

Investor type	Points to weigh
Long-term investor	Compare valuation with growth and margin recovery, and treat AI as both a risk and an opportunity
Pre-results trader	Results-day moves can be sharp in either direction, so position size and stop-losses matter
Diversifier	Large caps offer scale and dividends, while mid-caps such as Mphasis offer faster growth with more volatility

This table frames the choices among IT stocks to buy and is not a recommendation.

Conclusion

IT stocks to buy before Q2 results split brokerages: Motilal Oswal likes HCL Tech and Mphasis with upside of 16.6% and 20%, JM Financial adds TCS but reduces HCL Tech, and Nirmal Bang is bearish on large caps. TCS reports on 8 October, HCL Tech on 12 October and Mphasis on 5 November, and the quarter is expected to be soft for large caps and better for mid-caps. For investors screening IT stocks to buy, margins, guidance and AI deal wins will decide the reaction. Consult a SEBI-registered advisor before making any decision.

Frequently Asked Questions

Which IT stocks to buy before Q2 results?

Ans. Brokerages are split. Motilal Oswal has Buy ratings on HCL Tech and Mphasis, JM Financial has Add on TCS, and Choice Broking prefers TCS, Tech Mahindra, Coforge and Mphasis. These are views, not recommendations.

What is the TCS target price?

Ans. Among IT stocks to buy, JM Financial has a target of Rs 2,375 for TCS with an Add rating, about 14.5% above the Rs 2,075 close on 1 October. Nirmal Bang has Rs 1,581 with a Sell rating.

What is the HCL Tech target price?

Ans. Among IT stocks to buy, Motilal Oswal has a Buy on HCL Tech with a target of Rs 1,450, or 16.6% upside, while JM Financial has a Reduce with Rs 1,135.

What is the Mphasis target price?

Ans. Among IT stocks to buy, Motilal Oswal has a Buy on Mphasis with a Rs 2,700 target, about 20% above Rs 2,250.20, and JM Financial has a Buy with Rs 2,645.

When are the Q2 results for TCS, HCL Tech and Mphasis?

Ans. These IT stocks to buy report in this order: TCS on 8 October, HCL Tech on 12 October and Mphasis on 5 November, based on the results calendar.

What growth do brokerages expect in Q2?

Ans. Among IT stocks to buy, TCS is expected to grow about 0.5% in constant currency quarter on quarter, and HCL Tech 2% to 3%. Mid-caps such as Mphasis are expected to outperform large caps.

What did TCS report in Q1 FY27?

Ans. TCS, one of the IT stocks to buy, reported revenue of Rs 72,275 crore, constant-currency growth 0.4% QoQ, operating margin 24.0% and net profit Rs 13,349 crore. TCV was $9.5 billion.

Are these IT stocks to buy a good bet now?

Ans. This article does not constitute investment advice. The sector is lower-priced after a fall, but growth is soft and AI is a risk. Consult a SEBI-registered financial advisor before investing.