New Delhi, Apr 7 (PTI) Rising global uncertainty and fear of slowdown in its biggest market, the US, is seen taking a toll on the Indian IT industry’s showing, with several analysts now warning that a possible weak exit for the just-ended FY25 may be followed by an “unexciting guidance” or outlook pullbacks for FY26 as well as pain up ahead in verticals such as retail and manufacturing.
Disposal spending is likely to be in trouble, once again wasting hopes of a near-term recovery, they said. Market observers further warn that negative news may be seen over the next 3-6 months – including revenue cuts and potential pullbacks in fiscal 26 guidance.
In the context of global aftershocks and market massacres, industry experts convene retail and manufacturing verticals.
That said, some people think that “survival spending” may be the focus, and so does Genai. Some experts believe that while the near-term outlook remains, the outlook may be preferred in the second half of FY26 driven by macro stability and growth in demand for artificial intelligence.
The huge revenue week for export-led tech companies began this week, which is our distant global tariffs and its economic aftershocks around the world.
IT Heavyweight TATA Consulting Services (TCS) plans to release its earnings announcement on April 10. Infosys’ fourth quarter and full-year fiscal year report cards will be released on April 17, WIPRO (April 15), HCLTECH (April 22) (April 22) and Tech Tech Mahindra (April 24).
“The consequences of the Liberation Day tariffs have wreaked havoc on the Indian IT Services Units, pushing the industry into the eyes of the storm. Although the full impact will take time to unfold, discretion may be put on hold again,” Motilal Oswal said in a note.
According to IT, the shock is similar to both Covid and GFC (Global Financial Crisis), which ultimately triggered a strong cycle of technology adoption.
“The economic shock usually marks the beginning of a new technology cycle – the time for Gina may finally arrive. That is, the recent volatility is still high,” it said.
HDFC Securities said it is expected that IT departments will report weak exports in FY25 and provide a compelling guide for FY26 amid rising global uncertainty.
“The macroeconomic slowdown has become a benchmark situation, with lower disposable spending and extended trading cycles affecting the pace of recovery,” it said in a report.
Transaction activities will focus more on cost optimization/takeout planning. Genai is adopting a central style, but pricing changes can also be driven by businesses and high standards incorporating AI efficiency into their pricing models.
“For the fourth quarter FY25E, the revenue declines for most large IT companies ranged from -1.8% to 0.1% QOQ (-1.6% to 6% to 6% of QOQ (YOY)), and lower spending expenditures reduced DIPTIERARY expenditures due to weak demand and lower billing days. 4.4.7% QOQ QOQ QOQ QOQ QOQ QOQ QOQ QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ
“We hope that spending will increase, but the current macro uncertainty will further drive the recovery cycle,” it said.
However, cost-optimized transactions are expected to continue.
It added that the increased activity of the global capability center/captive will affect the industry’s near-term growth prospects.
As a result, India’s IT services sector has faced growth headwinds over the past few quarters, with customers in the U.S. and the EU scrutinizing technology amid economic pressures, while the increased fascination of AI has led to concerns about a decrease in job opportunities around the world.
Given the new tariff offensive of the U.S. on trading partners and key allies, the prospects of a global economic war have exacerbated the prospects of a global economic war, deepened the line of concern about the U.S. slowdown, and uncertainty in the future. Retaliatory moves are being considered and announced by markets such as China.
While the $25 billion Indian IT package (which earns a large portion of revenue from serving US customers – is waiting for your impact way to assess the full impact of its ongoing quarter (and trade negotiations (and trade negotiations) (trade negotiations that may swing the equation) does hope that through the recent developments of the US, it will actually gradually develop in the US, it will actually develop in the US, and it will actually develop in the US, and it will actually be able to communicate. In the long run.
The key points may vary for different vertical industries.
According to Motilal Oswal, financial services can delay non-essential programs, focusing on risk, compliance and operational efficiency. Manufacturing may delay most technology investments under severe profit pressure, but subsequent targeted automation and supply chain repairs may require priority.
Healthcare is expected to maintain basic initiatives such as telehealth and continuity, while broader transformation projects may be suspended. Insurance can focus on analytics and claim automation to offset cost increases and protect profit margins.
Retail and consumers may cut disposable technology spending significantly, and attention may shift to tools for maintenance pricing, inventory and logistics efficiency. According to Motilal Oswal’s analysis, high-tech and software can pause expansion plans and redistribute resources to productivity and customer retention.
According to a fourth-quarter snapshot of the antique stock brokerage, a weak exit rate could weigh the growth outlook for FY26.
It said that although the near-term outlook remains, the outlook in 2HFY26E is more favorable, due to the growth in demand for AI and platform transformation plans due to macro stability and demand growth.
“The macroeconomic environment is becoming increasingly uncertain, especially for Indian IT companies that rely on the United States, whose biggest revenue markets are concerned. Global tariff risks, potential policy instability and delayed downgrades, make companies more cautious and make companies more cautious, leading to gradual dependence, in large-scale change projects, gradually dividing scope, “in large-scale change projects,” gradually dividing scope, “in remotely dividing scope,” remotely dividing scope, “in remotely dividing scope,” “in remotely dividing scope,” “in remotely dividing scope,” “in remotely dividing scope,” once again promote people’s scope. and manufacturing vertical industries.
