Shares of several mid and small-cap IT companies, including Naukri, Zensar Technologies, and Eclerx Services, have seen significant gains in July, with prices climbing over 20%. This rally follows encouraging management commentary and improved demand forecasts for the second quarter and the latter half of fiscal year 2027. Investors are increasingly attracted to these stocks after recent declines from their record highs.
The NIFTY IT index itself has surged nearly 10% over ten trading sessions, reflecting a broader revival in IT sector sentiment. This momentum is driven by optimism around earnings and growth prospects, particularly among companies that had underperformed earlier in the year.
Why These IT Stocks Are Gaining Attention
The IT sector’s recent performance is closely linked to positive quarterly results and optimistic outlooks from company management. After a period of subdued returns, investors are now focusing on firms with strong fundamentals and growth potential. Mid and small-cap IT companies such as Naukri, Zensar Technologies, and Eclerx Services have stood out due to their robust earnings and strategic initiatives.
Zensar Technologies, with a market capitalization of around ₹12,000 crore, has seen its share price jump over 23% in just ten trading sessions. The company is also approaching its dividend record date on July 17, with a dividend payout of ₹12.6 per share. In the fourth quarter of fiscal 2026, Zensar’s sales rose 27.65% to ₹741.8 crore, while net profit increased by 35.79% to ₹199 crore compared to the previous year’s quarter.
Info Edge (India), the parent company of platforms like Naukri, Jeevansathi, 99acres, and Shiksha, has experienced a 21% rise in its share price during July. The company reported a 14% year-over-year increase in total billings for Q1 FY27, reaching ₹737 crore. Recruitment solutions billings grew 17.4% to ₹552 crore, and the real estate platform 99acres saw billings rise to ₹110 crore. Info Edge also recently launched AI-powered recruitment tools, enhancing its technology offerings.
Eclerx Services has recorded the highest gain among these stocks, with shares climbing over 27% in July. This surge follows a bonus issue in March 2026 and strong quarterly results. In Q4 FY26, Eclerx’s standalone revenue increased 19.35% to ₹765.9 crore, and net profit rose 19.1% to ₹129 crore. Despite these gains, the company’s share price had fallen over 30% earlier in the year.
Key Facts About the Recent IT Stock Rally
- The NIFTY IT index rose nearly 10% over ten trading sessions.
- Zensar Technologies’ shares increased over 23% in July, with a ₹12.6 per share dividend upcoming.
- Info Edge shares climbed 21% in July, supported by a 14% rise in Q1 billings.
- Eclerx Services shares surged over 27% after a bonus issue and strong earnings.
- Investor interest is driven by improved demand outlooks for Q2 and H2 FY27.
- These companies had experienced share price declines earlier in the year, making them attractive to value-focused investors.
Why This Surge Matters for IT Investors
The recent rally in these IT stocks highlights a shift in investor sentiment toward companies that have demonstrated resilience and growth potential despite earlier market volatility. The strong quarterly results and positive management outlooks suggest that demand for IT services is strengthening, which could support sustained gains.
For investors, this trend signals an opportunity to reconsider mid and small-cap IT firms that may have been overlooked during the sector’s downturn. The combination of solid financial performance, dividend payouts, and technological innovation, such as AI integration, enhances the appeal of these stocks.
However, the market remains sensitive to broader economic conditions and sector-specific risks. Investors should monitor upcoming earnings reports and industry developments to gauge whether this momentum can be maintained through the rest of the fiscal year.
Frequently Asked Questions
Q: What caused the recent rise in Naukri, Zensar, and Eclerx shares?
A: The rise is mainly due to strong Q1 earnings, improved demand outlooks for the coming quarters, and renewed investor interest in undervalued IT stocks after previous declines.
Q: How much have these stocks gained in July?
A: Zensar Technologies shares rose over 23%, Info Edge (Naukri’s parent) shares increased about 21%, and Eclerx Services shares surged more than 27% in July.
Q: What are the key financial highlights supporting this rally?
A: Zensar reported a 27.65% increase in Q4 sales and a 35.79% rise in net profit. Info Edge saw a 14% increase in total billings, with recruitment billings up 17.4%. Eclerx’s revenue grew 19.35%, and net profit rose 19.1% in Q4 FY26.
