Indian IT firms to weather AI shifts, West Asia crisis
Modest revenue growth expected; margins supported by rupee; demand outlook for FY27 in focus
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Indian IT majors are expected to report steady fourth-quarter results, with limited impact from the ongoing West Asia conflict, as earnings announcements begin in early April.
Analysts note that revenue growth is likely to remain stable as a new cycle of AI-related spending starts to shape the marketplace.
“This quarter (Q4 FY26) results will be good, and the impact of the West Asia conflict on Indian IT companies will be limited. Accenture’s results indicate that enterprises are investing in AI initiatives. Verticals like BFSI (banking, financial services & insurance), tech, and telecom are performing well, so Indian IT firms are expected to deliver solid Q4 results,” said Pareekh Jain, IT outsourcing advisor and Founder of Pareekh Consulting.
Industry veterans also highlighted that a weaker rupee would support revenue growth and operating margin expansion, despite pricing pressure on deals caused by AI.
“Rupee movements will help the margin profile of Indian IT firms, though there is pricing pressure on deals due to AI,” said V Balakrishnan, Chairman of Exfinity Venture Partners and former CFO of Infosys.
Q4 Results Timeline
Starting from first week of April, Indian IT majors will start announcing their fourth quarter results. TCS will announce the Q4 results on April 9, while Infosys will announce them on April 23. Similarly, HCLTech is scheduled to announce its Q4 FY26 on April 21.
Brokerage JP Morgan expects modest sequential revenue changes: TCS may see 0.6% growth quarter-on-quarter, Infosys could post a 0.7% decline, while HCLTech and Wipro are also expected to show a slight sequential dip.
Investors are closely watching management commentary on the demand environment, potential ripple effects of the West Asia crisis, and enterprise AI adoption trends.
“Revenue and operating margin guidance for FY27 will be crucial, as it will provide insights into which IT companies are best positioned to navigate AI-led changes,” noted a Mumbai-based market analyst.
