Healthtech cos shine even as IT sector faces weak demand

Healthtech companies are adapting more effectively to US regulatory challenges

- Jas Bardia

Healthtech firms have performed better than Indian IT's big five and auto ER&D firms in the first six months of FY26.

(ISTOCKPHOTO)

Healthtech providers have emerged as the only bright spot in India's $283-billion IT (information technology) sector, with firms such as Sagility, Inventurus Knowledge Solutions (IKS) and Indegene recording steady growth despite a sluggish demand environment.

Tier-1 IT services providers, mid-caps, engineering research and development (ER&D) firms and healthtech companies reported an average sequential growth of 1.6%, 2.7%, 2.89%, and 4.2%, respectively, during the July-September quarter.

This outperformance stems from health tech firms adapting effectively to US regulatory challenges, including tighter spending on medical drugs and raising reliance on software platforms for routine patient and administrative workflows, analysts said.