● Neutral for Indian equities
AI deals seen driving medium-term growth as Indian IT sector faces muted Q2: Report
The brief
- India’s IT services sector is likely to report muted performance in FY27’s second quarter
- Growing traction in AI-related deals is seen driving medium-term growth
- Near-term softness matters for Indian IT services companies; AI deal traction offers a medium-term growth offset
- Accenture Q4 beat boosts AI demand hopes; pricing pressure remains a worry for Indian IT
- Accenture forecast lifts Indian IT stocks, but investors remain divided on the outlook
- IT Q2 Preview: Strong Deal Wins, AI Pressure, Slow Conversion - Key Things To Watch
- India fastest-growing Asia market for NetApp; BFSI, IT services key drivers
- Greed and Fear Report: Chris Wood-led Jefferies sees IT earnings soaring 65% on AI boom but flags this as a key risk
Indian IT firms’ muted Q2 growth outlook
Analysts expect muted Q2FY27 growth for Indian IT firms amid weak discretionary spending, macro uncertainty and AI-led pricing pressure; large caps may underperform mid-caps. Infosys’ FY27 revenue growth guidance of 1.5%-3.0% is expected to face a possible cut or narrowing.
Monday, 5 October
- AI deals seen driving medium-term growth as Indian IT sector faces muted Q2: Report