Jefferies raised its price targets for Infosys and Tata Consultancy Services while keeping cautious ratings, highlighting selective valuation upside as the Indian IT sector faces subdued growth expectations through fiscal 2029.
Business Today and The Economic Times reported in accounts of a Jefferies client note that the brokerage lifted its Infosys target to ₹1,160 from ₹1,020 and its TCS target to ₹2,125 from ₹1,800. It kept a Hold rating on Infosys and an Underperform rating on TCS. The reports said Jefferies saw the two as the only large-cap Indian IT companies with further rerating potential and singled out Sagility among mid-sized firms.
Business Today reported that current share prices imply a 1%–3% constant-currency revenue compound annual growth rate (CAGR) for Infosys and TCS from FY26 to FY36. The Economic Times quoted Jefferies analysts’ client note as saying that a “lack of incremental negative surprises on growth” may help rerate IT shares amid potentially worsening sentiment around global AI capital spending.
Jefferies said the risk-reward profile becomes unfavorable above 17–18 times earnings, the outlets reported. In its adverse case, a sector unable to grow after FY29 would leave IT stocks valued at 12–13 times earnings. At the more favorable end, a long-run revenue-growth pace matching FY21–FY26 points to multiples of 15–22 times for large companies and 22–47 times for mid-sized firms.
The Nifty IT index had risen 16% in October and touched 32,314.35 intraday, Business Standard reported in an update dated Oct. 21, 2026. EconoTimes previously covered a session when the index gained as the Nifty 50 fell.
TCS reported revenue of $7.642 billion for the quarter ended Sept. 30, 2026, up 2.4% year over year in U.S. dollars and 0.5% sequentially in constant currency. Infosys has scheduled its Q2 FY27 results for Oct. 23, 2026, according to its investor calendar.
