IT stocks fall up to 8% despite reporting positive Q1 results

Despite strong Q1FY26 results, key IT stocks saw sharp declines. Both firms reported solid year-on-year growth in revenue and net profit, yet investor sentiment remained weak. Sector concerns and underperformance in key verticals may be weighing on stock performance.

India’s stock exchanges, led by the NSE and BSE, now boast a market capitalization above $5.3 trillion in 2025, ranking among the world’s top five. The IT sector is thriving, contributing 7% to India’s GDP and expected to reach $160 billion in spending this year, with IT exports crossing $210 billion and employing over 5.8 million people.

Here are the IT stocks fallen despite reporting positive results in Q1FY26;

1. Coforge

With a market capitalization of Rs 57,014.65 crore, the shares were trading at Rs 1,704.35 per share, decreasing around 7.83 percent as compared to the previous closing.

The shares of Coforge have seen bearish movement despite reporting positive results in Q1FY26. Revenue increased by 8 percent on a quarter-on-quarter basis from Rs. 3,410 crore in Q4FY25 to Rs. 3,689 crore in Q1FY26. Further, revenue increased by 57 percent year on year, from Rs 2,357 crore in Q1FY25 to Rs 3,689 crore in Q1FY26.

The company’s net profit increased by 16 percent on a quarter-on-quarter basis, from Rs. 307 crore in Q4FY25 to Rs. 356 crore in Q1FY26. Further, net profit increased significantly by 156 percent year on year from Rs 139 crore in Q1FY25 to Rs 356 crore in Q1FY26.

Morgan Stanley has maintained an ‘Overweight’ rating on Coforge after Q1 results, with a target price of ₹1,880, indicating a 10% upside from current levels. Growth was driven by the travel and other verticals, while the BFSI and insurance segments underperformed, according to the global brokerage’s assessment of the company’s performance.

2. Persistent Systems Ltd

With a market capitalization of Rs 80,506.12 crore, the shares were trading at Rs 5,147.45 per share, decreasing around 8.16 percent as compared to the previous closing.

The shares of Coforge have seen bearish movement despite reporting positive results in Q1FY26. Revenue increased by 3 percent on a quarter-on-quarter basis from Rs. 3,242 crore in Q4FY25 to Rs. 3,334 crore in Q1FY26. Further, revenue increased by 22 percent year on year, from Rs 2,737 crore in Q1FY25 to Rs 3,334 crore in Q1FY26.

The company’s net profit increased by 7 percent on a quarter-on-quarter basis, from Rs. 396 crore in Q4FY25 to Rs. 425 crore in Q1FY26. Further, net profit increased significantly by 39 percent year on year from Rs 306 crore in Q1FY25 to Rs 425 crore in Q1FY26.

Written by Abhishek Singh

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