Indian IT sector recovers gradually as deal wins rise

India’s IT sector is showing early signs of a gradual recovery, with deal wins improving and revenue outlook stabilising, a new report said on Friday. The report, released by BNP Paribas India, highlights that while Indian IT companies continued to lag global peers in revenue growth during the September 2025 quarter, their performance in securing new deals remained strong, signalling a healthier pipeline for the coming quarters.

According to the findings, the global IT services industry reported 3.8 per cent year-on-year revenue growth in USD terms during the September quarter, slightly lower than the 4.3 per cent growth seen in the June quarter.

However, India-based IT firms grew only 1.2 per cent in constant currency. This slower pace was partly due to stronger performances by global players such as Accenture, EPAM and ADP, along with the euro’s appreciation against the dollar.

Among industries, BFSI led revenue growth with 7.9 per cent year-on-year expansion, while verticals like retail, manufacturing, and energy also performed well.

Communications remained the weakest segment. Region-wise, revenue from the Americas grew 4 per cent, slightly slower than before, while Europe showed a stronger recovery with 4.3 per cent growth.