Overview
- Multiple brokerages expect a subdued April–June quarter for top Indian IT firms, with Equirus projecting constant‑currency organic dollar growth for the top six between a 1.7% decline and 1.1% rise.
- Analysts warn that AI is lowering prices for repeat services because clients use AI tools and agents to speed work and cut costs instead of increasing overall IT spend.
- Margins are expected to hold up in the near term thanks to a weaker rupee, lower supply pressures, and company cost‑cutting and productivity measures.
- Investors will focus on quarterly results and annual revenue guidance from TCS, Infosys, HCLTech and peers, with brokerages saying some firms may narrow or trim the upper end of forecasts.
- The sector has already been re‑rated by investors, with the Nifty IT index down sharply in 2026, and companies are slowing hiring and pushing system integration, cloud and security work as the main near‑term revenue drivers.