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Positives in IT, but fears remain
Mint Mumbai
|November 17, 2025
More than half of FY26 is out of the way, but for India's information technology (IT) companies, revenue visibility remains murky. Investors are swinging between hope and despair, as a recovery in revenue growth gets delayed.
The Q2 earnings saw modest sequential revenue growth for most tech firms and a selective recovery in key verticals. Out of 11 companies—five large-caps and six mid-caps—studied by BNP Paribas Securities (India), 64% reported revenue growth that was better than the lowered predictions made by analysts. This is an improvement from the 53% that exceeded expectations in the previous quarter.
On margin, 55% crossed expectations, against 13% last quarter. Infosys Ltd and HCL Technologies Ltd raised the lower end of their FY26 revenue growth guidance. As companies executed large deals won earlier, revenues flowed in.
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