IT sector likely to see weak 1QFY27; West Asia crisis, GenAI to weigh on revenues: Report

New Delhi [India], July 3 (ANI): India’s IT sector is likely to see a weak start to 1QFY27, with revenues hit by the West Asia crisis and higher productivity pass-throughs in managed services contracts. Most large IT services companies are also expected to struggle to achieve the midpoint of their FY2027 guidance, according to Kotak Institutional Equities.

Kotak revised its outlook for the sector by trimming FY2027-29 estimated revenue by around 0-1 per cent. It has further slashed fair values by 2-21 per cent.

“We expect companies to be below the midpoint of their annual guidance,” it said.