Archive · 30 Jan 2026
Nuvama Bullish on Midcap IT Stocks
Nuvama, a financial services company, is very optimistic about three mid-sized IT companies: Persistent Systems, Coforge, and Mphasis.
They think these companies did really well in the third quarter of the financial year 2026.
Persistent Systems and Coforge grew their revenue by about 4% compared to the previous quarter, while Mphasis grew by 1.5%.
All three companies kept their profits steady or even increased them, which is great news.
Nuvama believes these companies are doing well because they have good deals and are using new technologies like AI to help them.
They think these companies have a bright future and could be good investments.
Nuvama maintains 'Buy' ratings on Persistent Systems, Coforge, and Mphasis after strong Q3FY26 results.
Persistent Systems reported 4.1% quarter-on-quarter revenue growth and 16.7% EBIT margin.
Coforge saw 4.4% quarter-on-quarter revenue growth and 13.4% EBIT margin, with a 30.4% year-on-year increase in the order book.
Mphasis reported 1.5% quarter-on-quarter revenue growth and steady 15.2% EBIT margin, with strong deal wins but lagging revenue growth.
Nuvama cites strong order books, pipelines, and AI-led efficiencies as key drivers for these companies.
- Who
- Nuvama Institutional Equities
- What
- Reiterated positive ratings on Persistent Systems, Coforge, and Mphasis
- When
- After Q3FY26 results
- Where
- India
- Why
- Better-than-expected revenue growth, steady margins, and strong deal activity
- Persistent Systems
- Buy rating, 27.4% upside
- Coforge
- Buy rating, 49.9% upside
- Mphasis
- Buy rating, 24.2% upside
- Persistent Systems Revenue
- $422.5 million (Q3FY26)
- Coforge Revenue
- $478 million (Q3FY26)
- Mphasis Revenue
- $451.4 million (Q3FY26)
- Persistent Systems EBIT Margin
- 16.7%
- Coforge EBIT Margin
- 13.4%
- Mphasis EBIT Margin
- 15.2%