Experts see better H2 for IT sector after strong TCS show

ASTRONG SHOW byTata Consultancy Services (TCS) in the September quarter—which beat estimates on revenue, margins and deal wins—has revived optimism across the IT sector, with analysts seeing early signs of a recovery in technology spending through the second half of the year.

- URVI MALVANIA

However, brokerages remain cautious on how much of TCS’smomentum would flow through to its peers.

PERFORMANCE UPDATE

Analysts view TCS performance and commentary as a potential turning point for the industry, suggesting that large deal activity and vendor consolidation could drive incremental growth. “We expect demand in H2 to be better than H1,’ analysts from CLSA said, highlighting broad-based growth across markets, though Continental Europe was marked a concern.