Indian IT Firms Face Muted Q4 Growth

CLSA and JPMorgan said Indian large-cap IT services’ Q4 results are likely muted, citing sequential revenue growth between -1.6% and 2%, with JPMorgan forecasting TCS +0.6% and Tech Mahindra +1% while predicting declines at Infosys (-0.7%), Wipro (-1.3%) and HCLTech (-1.6%). CLSA offers slightly different estimates and sees vertical variability; Forrester projects 2026 US tech services growth at 5.2%. Analysts say FY27 revenue guidance will be pivotal.
Key Points
- 1Project muted sequential revenue growth of -1.6% to 2% for large-cap Indian IT.
- 2Cite early-stage AI adoption and uncertain macro conditions limiting reflation and deal closures.
- 3Advise investors to watch FY27 revenue guidance for signs of demand and AI-driven recovery.
Scoring Rationale
Industry-wide broker forecasts and credible analyst commentary drive score; limited novelty and moderate actionable detail constrain impact.
Sources
Public references used for this report.
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