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Motilal Oswal Sees AI as Opportunity for Infosys, Coforge, Tech Mahindra

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  Published in Stocks and Investing on Monday, February 16th 2026 at 8:21 GMT by Business Today
      Locales: Maharashtra, Karnataka, INDIA

Mumbai, India - February 16th, 2026 - In a market increasingly preoccupied with the disruptive potential, and accompanying anxieties, surrounding Artificial Intelligence (AI), Motilal Oswal Financial Services (MOFSL) is taking a decidedly optimistic view of the Indian IT sector, specifically singling out Coforge, Infosys, and Tech Mahindra as prime investment opportunities. The brokerage firm released a report this morning detailing its 'Buy' recommendation for all three companies, emphasizing their underlying strength and adaptability in the face of the rapidly evolving technological landscape.

While many analysts are currently focused on the potential for AI to disrupt traditional IT services - questioning the future demand for basic application maintenance and coding - MOFSL argues that these three players are not simply vulnerable to displacement, but poised to benefit from the very trends causing concern. The report suggests a nuanced understanding of how AI will reshape the industry, moving beyond the simplistic narrative of job losses and towards a future where AI acts as an augmentation tool, increasing efficiency and unlocking new revenue streams.

Beyond the Hype: A Focus on Fundamentals

The core of MOFSL's thesis rests on the understanding that successful IT companies in the AI era won't be those merely using AI, but those adept at integrating it into complex digital transformation projects for their clients. This requires a strong foundation of existing client relationships, deep domain expertise, and robust execution capabilities - qualities MOFSL identifies in abundance within Coforge, Infosys, and Tech Mahindra.

Coforge: The Niche Specialist

MOFSL's analysis points to Coforge's strategic focus on specific, high-growth niche areas as a key differentiator. Unlike some of its larger competitors who attempt to be all things to all people, Coforge has carved out a position as a specialist in areas like digital process automation (RPA), cloud migration, and data analytics, frequently serving sectors with stringent regulatory requirements. This specialization allows Coforge to command premium pricing and build deep, sticky relationships with its clients. The report notes that Coforge's consistent track record of execution and its ability to deliver complex projects on time and within budget are significant strengths. Further, the company's recent investments in AI-powered platforms for process optimization are expected to yield significant returns, solidifying its position as a leader in the automation space. Analysts predict a continued strong growth trajectory for Coforge, driven by increasing demand for its specialized services.

Infosys: The Global Powerhouse

Infosys, a long-established giant in the Indian IT sector, continues to impress with its comprehensive services portfolio and extensive global presence. MOFSL highlights Infosys' ability to offer end-to-end solutions, from consulting and system integration to application development and maintenance. This breadth allows Infosys to act as a 'one-stop shop' for clients undergoing large-scale digital transformations. Crucially, Infosys has been proactively investing in AI capabilities, not as a replacement for its existing workforce, but as a tool to enhance its service offerings and drive innovation. Their Infosys Cobalt platform, an AI-powered cloud platform, is central to this strategy, enabling faster development cycles and more personalized customer experiences. The report emphasizes that Infosys' strong brand reputation and its long-standing relationships with Fortune 500 companies provide a significant competitive advantage.

Tech Mahindra: Engineering & Digital Convergence

Tech Mahindra's focus on engineering and digital solutions sets it apart, according to MOFSL. The company's deep expertise in areas like 5G, IoT, and automotive engineering positions it well to capitalize on the convergence of the physical and digital worlds. In an increasingly connected world, the demand for sophisticated engineering solutions that integrate seamlessly with digital platforms is expected to surge, and Tech Mahindra is well-placed to benefit. MOFSL's report points to Tech Mahindra's strong investment in research and development, particularly in areas like AI-powered predictive maintenance and autonomous driving, as a key indicator of its commitment to innovation. The company's ability to deliver complex, mission-critical solutions for industries like manufacturing and telecommunications is also highlighted as a major strength.

AI: An Opportunity, Not a Threat

MOFSL acknowledges the uncertainties surrounding AI investment, particularly the potential for short-term fluctuations as companies adjust to the new technology. However, the brokerage remains steadfast in its belief that the long-term growth prospects for these three IT companies are exceptionally positive. The report concludes by stating that these companies are not simply adapting to the AI era; they are actively shaping it, and are well-positioned to deliver significant value to their shareholders in the years to come.