AI deals seen driving medium-term growth as Indian IT sector faces muted Q2: Report
India’s IT services sector is likely to see muted performance in the second quarter of FY27, but increasing traction in artificial intelligence-related deals could support growth over the medium term, Centrum said in a report.
The report said the demand environment has remained broadly unchanged over the past three months, with clients cautious about AI adoption and longer decision-making timelines weighing on near-term growth. At the same time, the brokerage expects deal booking to remain healthy, with a strong pipeline across most IT services companies.
