Enhancing margins: Weak rupee a silver lining for IT services companies

The Indian IT services industry derives roughly 90 per cent of its revenues from global markets-about 57 per cent from the US and around 28 per cent from Europe

With the majority of revenue coming from the US, the declining Indian rupee against the US dollar is proving to be a net positive for the information technology (IT) services sector. Experts expect that for the third quarter (October–December) of 2025-26, this trend will support margins. 

The Indian IT services industry earns roughly 90 per cent of its revenue from global markets — around 57 per cent from the US and about 28 per cent from Europe. 

Aditya Jhaver, director at Crisil Ratings, said, “On a weighted-average basis, factoring in the sector’s revenue mix and foreign exchange (forex) hedging policies,