IT services cos to post muted revenue growth of 4-6% in FY25 on lower discretionary technological spends, says ICRA

The Indian IT services industry is expected to post a second consecutive year of mild revenue growth, estimated at 4-6 per cent in FY2025, stated a report by ICRA. Despite persisting challenges, ICRA said that the industry’s operating profit margin (OPM) is expected to remain healthy at approximately 22 per cent in FY2025, with attrition levels having declined considerably and expected to stabilise over the near term.

Even as the report suggests continued subdued growth, it maintains Stable outlook on the Indian IT services industry, led by a well-established business position, expectation of healthy earnings and cash flow generation, and strong balance sheets of the industry players.