Modest Growth Amid Challenges

India's leading IT services companies have reported modest single-digit revenue growth for the first quarter of FY26, as global macroeconomic uncertainty and geopolitical instability continue to impact client decision-making. Despite these challenges, opportunities in artificial intelligence, vendor consolidation, and cost optimization are emerging as bright spots.

Company Performances Highlight Varied Outcomes

From Wipro's 0.8% growth to HCLTech's leading 8.1% increase, the quarter's results reflect a spectrum of outcomes. TCS, India's largest IT exporter, saw a 1.3% revenue growth, with CEO K Krithivasan cautioning against expectations of double-digit growth in FY26 due to demand contraction.

Looking Ahead

Despite the current softness in demand, analysts remain optimistic about the long-term, citing the high tech debt across global enterprises as a potential driver for future spending once macroeconomic conditions stabilize.