Equirus Securities says India IT Q1 quiet amid budget tightening
India's biggest IT firms are set for a pretty quiet first quarter this fiscal, says Equirus Securities.
Instead of splashing out on new AI projects, clients are tightening budgets and focusing on cost-cutting.
Add in global economic uncertainty and some geopolitical drama, and it's shaping up to be a cautious year for tech growth.
Top-six IT growth -1.7% to 1.1%
Revenue growth for the top six IT companies is projected to range from -1.7% to 1.1% this quarter, so not much movement.
Wipro could see the slowest growth, while Tech Mahindra might do a bit better than its peers.
Equirus Securities expects Infosys to revise its full-year guidance to 2.8% to 4.3% excluding the Vertex acquisition, keeping profit margins steady at 20% to 22%.
Despite short-term challenges, demand for AI upgrades and cloud tech should keep things interesting in the long run.