IT revenue per head rises 6% in June quarter of FY25, says report

The Indian IT sector has reported a 6 per cent year-on-year (Y-o-Y) increase in revenue per head (RPH) in the first quarter of financial year 2025 (Q1FY25), according to a report by HSBC Securities and Capital Market research.

While this may seem like a positive trend, a closer examination reveals that the increase in RPH is largely driven by factors such as higher utilisation, pass-through revenues, and sub-contracting ratios, rather than underlying pricing trends.