India's leading IT companies are expected to report another weak quarter, with AI-driven pricing pressure and cautious client spending weighing on results, according to five brokerages cited by Reuters. The sector, valued at $315 billion in the report, is adjusting business models as AI-based technology increases pressure on billable-hour models and pricing.
TCS is scheduled to begin the earnings season on October 8, followed later in the month by Infosys, HCLTech and Wipro. Jefferies expects revenue growth of 0.7% to 3.5% quarter-on-quarter for the top six firms, which would be the industry's weakest sequential performance in three years. Analysts expect revenue to rise about 10% year-on-year in rupee terms.
The story matters for Indian students and job seekers because the country's IT sector employs nearly 6 million people. AI is affecting not only software tools but also how IT services are priced, delivered and organised, making AI skills increasingly relevant to technology careers.
Reuters reported that investors will focus on companies' annual revenue growth forecasts as earnings are released. Infosys may reduce the upper end of its 1.5% to 3% growth forecast, according to analysts cited in the report.