Market Overview
The Indian IT sector is expected to grow moderately in fiscal 2026, with mixed revenue trends among major firms. While mid-sized companies are projected to sustain momentum, larger firms may experience challenges in maintaining quarter-on-quarter growth due to macroeconomic conditions and evolving technological trends.
Industry Insights
The fourth quarter of the fiscal year is anticipated to reflect subdued seasonality, influenced by global economic factors and early signs of changes in artificial intelligence (AI) demand. As a result, revenue projections for fiscal years 2026 and 2027 have been revised, with Tier 1 companies expected to see reductions of 3-5%, while Tier 2 firms may face adjustments ranging between 2-10%.
Sector-Wide Outlook
The overall outlook for the Indian IT sector remains cautious, with revenue growth projections staying modest. Larger firms may face challenges due to global economic trends and client hesitancy in decision-making, whereas select mid-tier companies appear well-positioned for sustained growth. Fiscal 2026 is unlikely to see a significant acceleration in demand, indicating a period of measured expansion for the industry.
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