Strong Q1, Mixed Street View: Guidance Holds, Valuation Under Scrutiny

delivered a better-than-expected Q1 FY27 performance, retained its full-year revenue guidance, and announced a ₹3,500 crore investment in an AI data centre. However, brokerage views remained divided—while Nomura raised its target price on optimism around execution and AI opportunities, Citi downgraded the stock to 'Sell', citing expensive valuations, slowing growth, and weakness in the software business. The mixed reaction suggests that although operational performance remains solid, investors are becoming more selective about growth expectations and valuation.