New Delhi – India’s top IT companies are expected to grow a little this quarter, with Q2 revenue rising by up to 2.1 % compared with the last three months, a forecast from Equirus Securities said on Wednesday.
The forecast comes as businesses face tougher macro conditions that may curb extra tech spending. Still, demand remains steady, more deals are closing, and a weaker rupee to dollar exchange gives a boost.
Equirus analysts predict that the six biggest IT firms – the large‑cap names that drive the sector – will see constant‑currency sales either flat or up 2.1 % QoQ. “Sales growth of 0 % to 2.1 % is expected for the top six,” the firm said, adding that some midcap companies should see solid sales growth.
The rupee’s 3 % fall against the dollar – an average for most firms in Q2 – plus fewer supply‑chain headaches, cost cuts and productivity gains are expected to keep earnings before interest, taxes, and marketing (EBITM) strong for large‑cap IT firms.
Market values of the sector are likely to stay relatively stable in the near‑to‑mid term because of ongoing global uncertainty, tariff worries and geopolitical risks, the report noted.
“Clients may still invest heavily in GenAI or Agentic AI,” the analysts added, arguing that even if they try to save money, the demand for AI‑driven productivity tools will stay high. “Investors may also be cautious if US visa rules change, but this may push companies to secure more savings on AI projects,” they said.
Earlier this month, HSBC Global Investment Research said India’s IT services sector could grow 4‑5 % next year – above the trend for the past three years – expecting less economic volatility and a lift in growth in FY27.
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Source: ianslive
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