IT sector likely to report muted quarter in Q4

India’s IT services sector is expected to report another subdued quarter for the three months ended March, with brokerages pointing to weak sequential growth, geopolitical uncertainty stemming from the West Asia conflict, and rising pressure from AI-led pricing pressure as key concerns for FY27.

Analysts across major brokerages said Q4 is likely to remain muted despite some support from the rupee’s depreciation against the US dollar, which is expected to provide a revenue boost of 10 to 60 basis points.