Results preview: IT companies likely to remain on recovery path in Q2

Demand uptick seen in pockets, sectors

Management commentary on demand environment, and forward guidance will be in focus when Indian IT services players declare their September quarter results for financial year 2024-25 (Q2FY25).  The industry is exepected to have continued on the path of recovery in Q2, similar to the preceding quarter, rather than sprint towards growth. The top four firms likely grew between 0 per cent and 4 per cent year-on-year (Y-o-Y), according to consensus estimates.

“Q2 is unlikely to change the earnings trajectory for the sector. While demand is improving, it is not beating existing estimates,” HSBC Global Research said in a