India's large IT services companies are headed for a muted first quarter, with growth visibility unlikely to improve meaningfully until clients move beyond cost-take-out projects to larger AI-led transformation deals, according to a research report by Equirus Securities.
The brokerage expects demand to remain measured through FY27 as volatile macro conditions and geopolitical uncertainties keep enterprises cautious on discretionary spending. While AI adoption is accelerating, most clients are funding it through productivity gains and vendor consolidation rather than expanding overall IT budgets. That dynamic is likely to cap revenue growth in the near term, even as the sector benefits from currency tailwinds and better margins.
