India's top IT firms begin reporting April–June quarter earnings this week, and results are expected to remain subdued, extending the previous quarter's soft performance, as price pressure from artificial intelligence, sluggish client spending, and global turmoil weigh on growth. According to estimates from nine brokerages, combined revenue at India's six largest IT companies is likely to rise about 14 percent year on year, with net profit up 12 to 13 percent, but the bulk of that increase stems from the rupee's sharp depreciation; stripping out currency effects, revenue growth is seen at just 2.8 percent. Nomura describes the situation as a perfect storm, with uncertainty from the Middle East conflict compounding AI-driven price pressure. The Nifty IT index fell 9.5 percent in the April–June quarter and is down roughly 28 percent year to date, the worst decline among major sectors. Investors are focused on full-year revenue guidance, and there is a view that Infosys and HCLTech may narrow their revenue growth ranges or lower the upper end of their forecasts.
Infosys Ltd ADRWeak client spending and AI-driven price pressure are expected to subdue HCLTech's quarterly results, with potential guidance cuts.