Persistent, Mphasis stocks top Anand Rathi's IT bets; brokerage sees turnaround potential in Mastek

India's midcap IT services sector could see improved deal conversion and operating leverage in the second half of FY27, but revenue growth is likely to remain muted through the year as AI-led deflation, geopolitical disruptions and delayed deal ramp-ups weigh on near-term…

The domestic brokerage expects revenue growth in the IT sector to remain muted in FY27 amid AI-led deflation and geopolitical pressures. It said scaled execution-focused midcap IT companies could benefit from increasing vendor consolidation and cost-take-out deals.