Accenture results: Worst behind for India IT; buy selectively, say analysts

Global firm Accenture’s fourth quarter results prove that the worst is behind for the Indian information technology (IT) sector, said analysts on Friday.

While the pace and the broadness of recovery is debatable, they said Accenture’s results and revenue growth guidance for the next financial year (FY25) reduce downside risks for Indian IT companies.

“While a strong recovery in discretionary demand may take a few quarters, it is unlikely to worsen. We expect revenue growth for India’s largecap IT companies to improve in financial year 2025-26 (FY26), registering a growth of around 7.9 per cent year-on-year (Y-o-Y) as against FY25’s estimated growth of 3.6 per cent Y-o-Y,” said analysts at Nomura.