Rupee Weakness to Boost IT Earnings in Q4, BofA Says; FY27 Projections Revealed

• Indian IT companies' shares traded higher on March 25, driven by anticipated rupee weakness.
• BofA Securities expects favorable forex movements to add 100 basis points to Q4 profitability.
• Companies may reinvest some gains, but forex tailwind will cushion FY27 earnings expectations.
• Infosys and HCLTech revenue growth guidance for FY27 is 1.5%-4.5% and 2.5%-5.5% respectively.
• Acquisitions by Infosys and HCLTech could further boost their annual growth outlooks in FY27.