CITI ON INDIAN IT SERVICES ; CAUTIOUS OUTLOOK

• Citi remains cautious on Indian IT services despite Cognizant outperforming Indian peers in Q3 CY26. • Cognizant revenue grows 4.8% YoY in constant currency, compared with 0.6–4.1% growth for Indian IT peers. • Elevated competition, AI-led productivity gains and market share shifts towards Global Capability Centres (GCCs) remain key challenges. • Indian IT valuations remain expensive, with TCS, Infosys and HCL Tech trading at 16x, 15x and 18x forward P/E, respectively, compared with Cognizant at 11x. • Demand conditions remain challenging despite AI opportunities, while valuation premiums over global peers limit potential upside.

VINSYS IT SERVICES IND LT

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