The Indian IT sector is in focus, with TCS set to announce its second-quarter results on October 9, followed by HCL Technologies on October 13, and Persistent Systems and Tech Mahindra on October 14, among others. Kotak Institutional Equities believes India’s IT services industry will post a steadier September quarter (Q2FY26) as demand shows early signs of stabilisation and margins remain firm. Kotak expects sequential growth between 0.2% and 6% across major IT companies.

The big H-1 B concern

It also flagged tighter H-1B visa rules in the US as a concern, warning that higher onsite wage costs could pressure margins if companies fail to pass them on to clients. Wage hikes remain limited this year, which may further support profitability.

Kotak on impact of weak rupee on IT sector

The

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