Indian IT Giants Brace for Muted Q2 Growth Amid AI Deflation

4 Oct 2026, 5:36 pm · 5h ago · 1 min read · YourStory

India's top IT services companies are expected to report muted revenue growth of 0.5% to 1% quarter-on-quarter for the July-September period, according to research advisory UnearthInsight. Analysts from Gartner and UnearthInsight note that clients continue to keep discretionary budgets tight amid macroeconomic uncertainties and extended decision-making cycles of 12 to 18 months. The sector faces growing pressure from AI deflation impacting traditional services, alongside slower conversion of contract bookings into realized revenue. The earnings season kicks off with Tata Consultancy Services on October 8, followed by HCLTech on October 12 and Infosys on October 23.