Why are Indian IT firms expecting weak earnings?

Indian IT firms expect weak earnings due to tepid demand in the U.S. and client holiday shutdowns.

What is the impact of U.S. tariffs and visa fees on India's IT sector?

U.S. tariff uncertainty and proposed visa fee increases create macroeconomic headwinds, affecting client spending and investor confidence.

When is AI expected to boost demand for Indian IT companies?

AI momentum is expected to build over the next six months, with demand picking up into 2026 for Indian IT firms.

Home / Business and Economy / India IT Sector Braces for Muted Earnings Amidst Global Slowdown

India IT Sector Braces for Muted Earnings Amidst Global Slowdown

8 Jan

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Summary

Indian IT firms anticipate weak earnings due to U.S. demand and client holidays.
Projected 4% revenue growth for top firms, down from 6.5% in prior quarter.
Foreign investors exited IT stocks significantly due to economic uncertainties.

India IT Sector Braces for Muted Earnings Amidst Global Slowdown

India's prominent information technology firms are anticipated to deliver subdued financial results for the December quarter, according to industry analysts. This period is expected to see a year-on-year revenue growth of approximately 4% for the top six companies, a notable decrease from the 6.5% recorded in the September quarter. The downturn is largely influenced by persistent weak demand from the United States and the customary holiday-related pauses in client projects.

The broader Indian IT industry, valued at $283 billion, continues to navigate macroeconomic headwinds. These include uncertainties surrounding U.S. tariffs and the impact of proposed visa fee increases, which collectively dampen client spending. Foreign portfolio investors have reacted by divesting $8.5 billion from IT stocks in 2025, reflecting a cautious outlook amidst global economic concerns.