India’s IT sector enters its Q2 earnings season this week facing a contradiction. Deal activity remains healthy, but revenue growth is weakening as clients demand a larger share of the productivity gains created by artificial intelligence (AI).
The pressure is already visible in the market. The Nifty IT index has nosedived about 39% from its record high of 46,088.90 reached in December 2024, as investors have grappled with slowing earnings and fears that AI could annihilate demand for traditional IT services.
