Indian IT companies to see muted growth, pricing pressure in Q2

Indian IT firms are set for another muted quarter in Q2, with weak discretionary spending, AI-led pricing and productivity pressures, and longer decision-making cycles limiting revenue growth. Persistent macroeconomic uncertainty, geopolitical volatility and higher interest rates are also weighing on demand.

The second quarter normally provides a boost before the holiday season, but expectations remain for low-single-digit sequential revenue growth.