Technomania
India’s leading IT services companies, including Tata Consultancy Services, Infosys, HCLTech, Wipro, Tech Mahindra and LTIMindtree are expected to report a subdued March quarter, with modest growth largely driven by currency movements rather than underlying demand.
Brokerage firms' estimates suggest revenues for the top firms could rise around 10.9% year-on-year, while net profits may increase by about 10.3%. However, much of this growth is attributed to the depreciation of the Indian rupee, which fell roughly 4% against the U.S. dollar during the quarter, boosting earnings for export-focused companies.
On a constant currency basis, stripping out exchange rate benefits, growth is expected to remain weak, with some estimates pointing to annual revenue expansion of just around 1.8% for major firms.
The sector, valued at approximately $315 billion and employing nearly 5.9 million people, has been grappling with slowing demand since early 2023. Clients have reduced discretionary spending, deal cycles have lengthened, and budgets have increasingly shifted toward cost optimization and AI-related initiatives.
Analysts expect companies to provide cautious outlooks for the upcoming fiscal year. Infosys is likely to guide for revenue growth of 2%–4%, while HCLTech may project a slightly higher range of 4%–6%.
Performance across sectors is expected to remain uneven. Banking and financial services are likely to show relative resilience, while segments such as retail, healthcare, and high-tech could face continued pressure due to their dependence on discretionary spending.
Brokerages noted that macroeconomic uncertainties, ongoing geopolitical tensions, and evolving concerns around artificial intelligence are weighing on client budgets, limiting near-term growth visibility.
Despite the muted outlook, analysts said even modest guidance could support stock valuations, as current pricing already reflects low growth expectations. However, they cautioned that the sector’s re-rating will depend on how effectively companies adapt to AI-driven changes and demonstrate sustainable growth in the evolving technology landscape.
Brokerage firms' estimates suggest revenues for the top firms could rise around 10.9% year-on-year, while net profits may increase by about 10.3%. However, much of this growth is attributed to the depreciation of the Indian rupee, which fell roughly 4% against the U.S. dollar during the quarter, boosting earnings for export-focused companies.
On a constant currency basis, stripping out exchange rate benefits, growth is expected to remain weak, with some estimates pointing to annual revenue expansion of just around 1.8% for major firms.
The sector, valued at approximately $315 billion and employing nearly 5.9 million people, has been grappling with slowing demand since early 2023. Clients have reduced discretionary spending, deal cycles have lengthened, and budgets have increasingly shifted toward cost optimization and AI-related initiatives.
Analysts expect companies to provide cautious outlooks for the upcoming fiscal year. Infosys is likely to guide for revenue growth of 2%–4%, while HCLTech may project a slightly higher range of 4%–6%.
Performance across sectors is expected to remain uneven. Banking and financial services are likely to show relative resilience, while segments such as retail, healthcare, and high-tech could face continued pressure due to their dependence on discretionary spending.
Brokerages noted that macroeconomic uncertainties, ongoing geopolitical tensions, and evolving concerns around artificial intelligence are weighing on client budgets, limiting near-term growth visibility.
Despite the muted outlook, analysts said even modest guidance could support stock valuations, as current pricing already reflects low growth expectations. However, they cautioned that the sector’s re-rating will depend on how effectively companies adapt to AI-driven changes and demonstrate sustainable growth in the evolving technology landscape.
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