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.
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
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
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.
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.
Analysts believe that valuation comfort coupled anticipated revival in earnings and possible reversal of AI trade offer a better risk-reward scenario for Indian IT firms.
Valuations across the sector remain attractive, but Nomura stays selective. It has rolled forward its valuation framework to H1FY28 while maintaining target multiples.
The services sector's contribution to India's economy more than doubled over the last decade, with IT services GVA growing nearly fourfold despite current industry headwinds
At the Business Standard BFSI Insight Summit 2025, Salesforce CEO Arundhati Bhattacharya said customer service remains a major challenge for banks as they strive to balance convenience with security
