Indian IT companies are expected to report a subdued first quarter (April–June), with multiple reports citing a mix of demand weakness and shifting commercial dynamics tied to artificial intelligence. Business Standard and The Express Tribune both point to delays in a broader sector recovery, suggesting that recent signs of improvement have not yet translated into stronger orders or results. Analysts cited by Business Standard expect weak growth on a constant-currency basis, attributing the slowdown to pricing pressure linked to AI-led changes and to customer caution. Clients are described as spending cautiously, which dampens near-term project momentum and revenue visibility. Business Standard also highlights geopolitical uncertainty as an additional factor affecting demand. Currency movements are mentioned in Business Standard, which notes that gains may not be enough to offset underlying pressures in underlying demand and pricing. Across the coverage, the central theme is that while AI adoption is reshaping the market, it is also contributing to less favorable pricing and a slower near-term improvement in results. Overall, the reports portray muted quarter expectations rather than a sharp downturn.
Indian IT firms face muted Q1 as AI-driven pricing pressure and weak demand persist
Indian IT companies are expected to report a subdued first quarter (April–June), with multiple reports citing a mix of demand weakness and shifting commercial dynamics tied to artificial intelligence....
- Indian IT companies are expected to post a muted first quarter for April–June.
- Weak client spending and demand conditions are cited as a major factor.
- AI-related pricing pressure is reported to weigh on growth and margins.
- Analysts expect weak constant-currency growth despite currency gains.
- Geopolitical uncertainty is also mentioned as contributing to cautious demand.
Analysts expect weak constant-currency growth as AI-led pricing pressure, cautious client spending and geopolitical uncertainty weigh on demand despite currency gains
1 month agoIndia's IT sector likely saw a weak April-June quarter, delaying hopes of a broader recovery
1 month ago
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