Tier-II IT firms are expected to outperform Tier-I companies in Q1 results, benefiting from sharper execution and focused vertical bets.
Global macroeconomic environment appears stable with a strong pipeline of large deal wins, supporting optimism in the IT sector.
Tier-I companies like TCS and Infosys are projected to see muted performance, whereas Tier-II companies such as Coforge and Persistent Systems are expected to post healthy growth.
Analysts believe the divergence between Tier-I and Tier-II companies could widen if top players don't see an increase in client budgets, with expectations of a tech spending upcycle following stable macro conditions.