💻 At a glance
While the big IT boys—TCS, Infosys, and Wipro—are busy discussing “cost optimization” and firing campus hires for beingtoo fresh, India’s midcap IT players are quietly devouring high-margin niche contracts, pivoting into futuristic tech, and doing the one thing large IT forgot:growing.
Welcome to 2025, whereKPIT,Tata Elxsi,LTTS, andCoforgeare making traditional IT look like the Nokia 1100 of tech services.
🚨 What’s Going On?
- Large IT = Boring BFSI outsourcing + USD revenue headwinds + attrition drama
- Midcap IT = AI, EVs, embedded systems, aerospace, digital transformation, OTT, IoT, and all the cool buzzwords your dad doesn’t understand
Result? While Infosys posts1% QoQ growth and cuts guidance, midcaps are out here dropping20–30% YoY profit growthand casually bagging multi-year global contracts.
📈 The Midcap IT Avengers — Who’s Who
| Company | FY25 Revenue | FY25 PAT | 3Y Stock Return | Core Focus |
|---|---|---|---|---|
| KPIT Tech | ₹4,007 Cr | ₹562 Cr | +523% | Automotive software, EVs |
| Tata Elxsi | ₹3,413 Cr | ₹768 Cr | +480% | Design + Embedded systems |
| LTTS | ₹10,282 Cr | ₹1,504 Cr | +150% | ER&D, semis, plant digitization |
| Coforge | ₹9,230 Cr | ₹1,115 Cr | +210% | Travel, BFSI, digital core |
Yes, you read that right. These aren’t just tech companies. These arerevenue-generating, high-EBITDA-margin, dollar-minting midcap beasts.
🤖 What They’re Doing That Infosys Isn’t
| Thing | Midcap IT | Largecap IT |
|---|---|---|
| Real AI Deployment | ✅ (actual implementation) | ❌ (PowerPoint slide) |
| EV & Auto Clients | ✅ (KPIT, Elxsi) | ❌ (mostly BFSI) |
| Custom IP & Patents | ✅ (Tata Elxsi owns 75+ IPs) | ❌ (outsourced talent mills) |
| High Growth Guidance | ✅ (15–20% growth) | ❌ (single-digit, if lucky) |
| Fresh Hires | ✅ (train internally) | ❌ (ghost job offers) |
🔬 Case Study 1: KPIT Technologies
🚗 From Pune to Porsche
- Clients: BMW, Renault, Honda, VW Group
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