Monday, 5 October 2026Updated 13m ago
← Market pulse
Results▼ Bearish for Indian equities

IT firms' Q2 reality check: Growth recovery still out of sight

1 source · first seen 06:00 5 Oct · updated 06:00 5 Oct

The brief

Written from 1 report · check the source before you trade
  • Macro uncertainty, weak demand, AI-led productivity pressures and competition may hurt IT firms' Q2 growth recovery
  • Weak demand and AI-led productivity pressures threaten revenue growth at Indian IT-services companies

Tags on this story

Pick a tag to see all its stories
IT services14 todayIT demand7 todayAI49 today

Linked by the tag IT demand

35 stories this week
  1. 5 OctBlockbuster Accenture show holds out hope for battered Indian ITResults · 1 source · Accenture's latest financial performance has sparked optimism about a revival in client demand for Indian IT
  2. 4 OctIT Q2 Preview: Strong Deal Wins, AI Pressure, Slow Conversion - Key Things To WatchResults · 1 source · IT firms face subdued client spending, longer deal cycles and rising AI disruption entering the September quarter
  3. 4 OctIndia fastest-growing Asia market for NetApp; BFSI, IT services key driversExpansion · 2 sources · India is NetApp’s fastest-growing market in Asia, driven by BFSI, manufacturing, IT services and public-sector demand
  4. 3 OctGreed and Fear Report: Chris Wood-led Jefferies sees IT earnings soaring 65% on AI boom but flags this as a key riskBroker call · 1 source · Jefferies sees IT earnings soaring 65% on an AI boom, while flagging rising bond yields as a risk
  5. 3 OctWhat is happening to the Indian IT bench? | Explained1 source · Indian IT companies are managing bench staff more tightly as project demand fluctuates
All IT demand stories →
Part of a developing story13 updates over 7 days

Muted Q2 outlook for Indian IT companies

Analysts expect muted Q2 FY27 growth for Indian IT firms, with large caps potentially posting their weakest growth in three years and mid-caps outperforming. Weak client spending and AI-related deflation are key concerns, while margins are broadly expected to remain steady.

Monday, 5 October

  1. You are here
    IT firms' Q2 reality check: Growth recovery still out of sight

Sunday, 4 October

  1. IT Q2 preview: Muted growth, steady margins likely; deal conversion, AI deflation under lens
  2. India’s top IT firms brace for another slow quarter as client spending remains weak: Analysts
  3. 2 sources
    Indian IT firms seen posting muted Q2 growth with steady margins

Saturday, 3 October

  1. TCS, Infosys, Wipro shares ahead of Q2 results: Explained | What Accenture's strong earnings mean for Indian IT stocks

Friday, 2 October

  1. Indian IT unlikely to see growth revival in Q2 as cautious spending persists
  2. 2 sources
    Tier-2 IT firms likely to lead Q2FY27 growth despite Gen-AI, geopolitical challenges: Report

See all 13 updates →

Read the reports

1 report · earliest 06:00
MintIT firms' Q2 reality check: Growth recovery still out of sight06:00