HSBC Global Research Report on It Industry performance: The Indian IT industry is currently going through a dull phase. The recent results of major IT companies in FY 2025-26 indicate the weak growth. However, due to improvement in major export markets and adopting new technology, the situation is expected to improve in FY 2026-27.
Performance of IT giant companies
According to HSBC Global Research, the discretionary expenses of customers in the near future will remain weak. Demand is under pressure from challenges such as global economic uncertainty, customer cost cut and delay in decision making. Apart from this, geopolitical tension, supply chain problems and industry-specific vigilance (such as BFSI and Automobile Sector) projects are postponed.
Legendary companies like TCS, Infosys and HCLTech have shown strong booking and deals pipelines in the first quarter of FY 2025-26. Despite this, the estimate of revenue growth of the whole year is limited to only 1-5 percent. The performance of the NSE IT index in the last one year has been weaker than the widespread Indian market, which reflects the vigilance of investors.
future prospects
Despite the challenging situation, there is a possibility of slight improvement in 2026-27. When the comprehensive economic situation in the US and Europe is stable, AI based projects and digital transformations may increase demand for IT companies. With this, additional improvement of 2-3 percent in the revenue growth of Indian IT services is considered possible.
Significantly, after the arrival of AI, there has been a tremendous trimming in IT companies in recent months. The process of removing this employees is still not stopped. In such a situation, it is believed that after the arrival of AI in future and maximum use of it, people working in this sector can create a situation of uncertainty.
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