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IT Firms' Q1 Show May Be Tepid
Business Standard
|June 30, 2025
Expected to deliver low single-digit growth because of geopolitical headwinds
Indian information technology (IT) service providers are expected to deliver low single-digit sequential growth in the first quarter (April-June) of 2025-26 (FY26), even as macroeconomic uncertainties continue to persist due to the volatile geopolitical environment.
While the road ahead appears far from rosy, IT companies — which depend on the US for a large part of their revenue — point to no material deterioration in the spending environment. The quarter ended June 30 looks slightly better than what was feared earlier.
"This quarter will not be as bad as March but not as good as January either. While there has not been a sharp cut in spending, growth in this environment is difficult to come by as clients are still cautious on spending. For largecap players, our growth estimate is at sub-2 per cent while at the bottom end it is about a negative 1.5 per cent, at worst, sequentially," said a senior analyst at an international research firm.
This story is from the June 30, 2025 edition of Business Standard.
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