BS EDIT: Signs of recovery: IT sector’s results are promising

By Business StandardPublished On Jan 20, 2026

A fragile rebound takes shape

IT results suggest recovery, though risks from geopolitics and policy remain

Markets hint at a turnaround

Nifty IT rebounded in Q3 after underperforming the broader market in 2025

Earnings beat a soft-quarter curse

Despite seasonal weakness, most firms met or beat estimates with better guidance

AI and selective demand revival

AI-led projects and BFSI demand offer support amid uneven discretionary spending

Firms position for the upcycle

Strong balance sheets are enabling acquisitions and capability expansion

Risks remain, but mood improves

Downside risks persist, but sentiment has turned cautiously positive