Indian IT Sector

From AI and EVs to cooperative banks and data governance, India's transformation will depend less on ambition and more on effective institutions and execution

The Nifty IT currently quotes around 20 per cent below its 200-DMA. TCS, Infosys, Wipro and HCL Technologies are down in the range of 21-26 per cent form respective 200-DMAs.

AI-led disruption, weak client spending and the rise of GCCs are reshaping India's IT sector, weighing on earnings, hiring and stock valuations

The Indian technology services industry is already generating an estimated USD 10-12 billion in revenue from artificial intelligence (AI) services, with nearly a quarter of companies successfully moving AI experiments into production, industry body Nasscom said. Dismissing concerns that the rise of AI could diminish the relevance of traditional IT services, industry leaders at the Nasscom US CEO Forum in New York City said that the sector remains central to global enterprise transformation in the AI era. "While AI will bring productivity gains and compress parts of standardised, repeatable work, it will also expand demand for technology orchestration, data readiness, application modernisation, AI governance, cybersecurity, agent management and industry-specific solutions. "Nearly 25 per cent of technology services companies have moved AI experiments into production. The industry is generating an estimated USD 10 to 12 billion in AI services revenue, with more than 2 million ...

The companies rose to prominence in the late 1990s by helping Western firms solve the Y2K bug, which had threatened computer chaos at the turn of the millennium

LTM plans to acquire Randstad's Europe and Australia tech units for €160 million to deepen AI, cybersecurity and digital engineering capabilities

Analysts believe HCL Technology's softer revenue guidance versus expectations and an AI deflation impact of 3-5% will likely raise concerns about overall industry growth for FY27.

Job losses, reduced asset values, increased inflation can have many long term impacts on the morale and the social fabric that will be hard to predict

Tech Mahindra reported a 16 per cent rise in Q4 FY26 net profit, while revenue grew 12.6 per cent year-on-year, though profit missed Bloomberg estimates

The IT sector is expected to have a subdued quarter, with revenues likely to remain flat due to the ongoing geopolitical situation

West Asia conflict, GenAI fears, and cautious clients weigh on demand

AI adoption is reshaping cost structures, leading to shorter project timelines and thereby layoffs in low-skill roles, said Geojit's Vinod Nair

As India pivots from software services to AI token "factories" with tax breaks for global firms, questions arise over jobs, skills and the future of its $200 billion IT export engine

Industry converges at 34th Nasscom Technology & Leadership Forum 2026 beginning today

Supports IT services industry and students

Nomura said the quarter was "largely in line," noting that revenue growth was marginally ahead of its estimate and that margins were close to expectations.

Persistent Systems share price today: Market participants attributed the decline largely to profit booking after a sharp rally over the past few months rather than any deterioration in fundamentals.

TCS Q3 results impact: The common thread across analysts is that while Q3 execution remains strong and margins resilient, clear visibility on broad-based demand acceleration is still missing.

India's IT companies earn a significant share of their revenue from the United States, making the world's largest economy crucial for the sector

After a modest recovery in Q2 on low expectations, Motilal Oswal expects December quarter (Q3) to revert to typical seasonal softness, with furloughs weighing on growth across large IT services firms.