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HomeMarket NewsMidcap IT Q4 Review: Persistent, Mphasis shine; LTTS, Cyient disappoint
In constant currency (CC) terms, Persistent reported revenue growth of 4.5%, ahead of estimates of 3.8%. Mphasis also beat expectations slightly, reporting 2.9% growth as against an estimate of 2.8%.
Among midcap IT companies, Persistent and Mphasis delivered strong performances for the January to March period of the last financial year, with one-year returns of 50% for Persistent and 12% for Mphasis.
LTIMindtree's performance was in line with expectations, with the stock declining 3% over the past year. LTTS and Cyient underperformed, with LTTS down 18% and Cyient down 40% over the same period.
| Midcap IT performance | 1-year return |
| Persistent – HIT | +50% |
| Mphasis - HIT | + 12% |
| LTIM - INLINE | -3% |
| LTTS - MISS | -18% |
| Cyient – MISS | -40% |
In constant currency (CC) terms, Persistent reported revenue growth of 4.5%, ahead of estimates of 3.8%. Mphasis also beat expectations slightly, reporting 2.9% growth as against an estimate of 2.8%.
| CC Rev growth | Est |
| Persistent 4.5% | 3.8% |
| Mphasis 2.9% | 2.8% |
| LTIM -0.6% | 0% |
| LTTS 10.5% | 13% |
| Cyient -1.9% | -0.5% |
LTIMindtree saw a revenue decline of 0.6%, underperforming the flat growth expected. LTTS missed its estimate, posting 10.5% growth against the expected 13%. Meanwhile, Cyient reported a decline of 1.9%, below the estimate of a 0.5% drop.
Guidance
Persistent: Maintains FY27 annual revenue guidance of $2 billion and aims to achieve $5 billion by FY31. Margins are expected to improve by approximately 200 basis points over FY25-27.
Mphasis: Expects to grow above the industry average.
LTTS: Expects FY26 to be a better year than FY25. The company is guiding for double-digit revenue growth in constant currency (>10%), although this is lower than analysts' estimates of high double-digit growth.
Cyient: No guidance for FY26E. Uncertainties are expected to persist at least through the first half of FY26. Margin guidance is set at 15% over the next two years, compared to the earlier guidance of 16% within the next year.
