FY26 may be another slow year for IT firms

Analysts say possibility of hitting high single-digit revenue growth looks unlikely

- SHIVANI SHINDE & AVIK DAS

The information technology (IT) services industry may be headed for another year of sluggish growth. Based on the results of the top five IT services companies for the first quarter of 2025-26 (Q1FY26), analysts say the possibility of hitting high single-digit revenue growth in FY26 looks unlikely. The top five IT players are Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro, and Tech Mahindra.

According to UnearthInsight, tech services will grow by 3-5 per cent in FY26, with leading Indian IT companies likely to experience modest, incremental growth rather than a strong recovery in the near term. Persistent geopolitical uncertainties, evolving US tariff dynamics, and a weak global economic outlook are expected to delay deal closures and extend the timeline for a meaningful recovery in client spending.