Mid-cap IT firms poised for growth amid AI boom, H-1B shifts: Equirus Capital

• Mid-cap IT firms are better positioned than large-caps due to AI adoption and H-1B visa changes, says Sandeep Gogia of Equirus Capital.
• New H-1B visa system favors higher-skilled workers; Indian IT firms will increase local hiring and offshoring, reducing visa dependence.
• Mid-cap players, being more specialized and nimble, could see mid-to-high single-digit growth in FY27, supported by enterprise AI adoption and BFSI spending.
• AI upskilling is already a focus for IT firms, driven by client expectations for productivity gains and embedding AI in services.
• Enterprise AI adoption is key; as it increases, IT services investments will follow, leading to strong upside in the next 2-3 years.

Why It Matters: Mid-cap IT firms are set to outperform large-caps due to AI adoption and H-1B visa reforms.