According to him, this approach is similar to the cloud revolution, where early movers like Accenture gained a strong edge. He said, “Maybe some more investments in understanding the next big trend and investing a little bit ahead of time…at least grabbing the new technology shifts a bit early, and having the right set of people for that, I think that is important.”
On the July-September quarter of 2025 (Q2FY26) results, Shah stated that tech companies are largely performing in line with the lower expectations set by the market. He described the scenario as slightly better than expected and sees opportunities for steady returns. For large-cap IT stocks like Infosys, he believes investors can expect moderate, safe returns of around 10–12%, with companies showing consistent performance and reasonable valuations. Shah said, “For an investor who is not expecting huge returns, but pretty safe, say 10 to 12% returns, opportunities may be starting to emerge in the sector.”
Shah added they currently own Mastek in the small-cap IT space and also hold and favour companies like Redington.
Also Read: IT services growth to remain modest, even for global players, says Sandip Agarwal
He also sees potential in small-cap IT companies that have strong leadership and growth prospects, even if some names haven’t performed well recently. Additionally, Shah highlighted the role of artificial intelligence (AI) in reshaping productivity, explaining that “Journey AI boosting significantly the productivity” is reducing the effort needed for the same activity, which could help companies grow efficiently in the coming years.
For the entire interview, watch the accompanying video
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