HSBC's Yogesh Aggarwal warns AI will hit IT in FY2027
Business
HSBC India thinks the IT sector is in for its hardest year yet in FY2027, mainly because AI is putting pressure on prices and earnings.
Yogesh Aggarwal, their head of research, calls it the "worst year in terms of the negative AI impact" for Indian IT.
The silver lining? He feels stock prices have already hit rock bottom, so there's not much room left to fall.
Aggarwal sees FY2027 revenue 0%-2%
A turnaround is expected by FY2028, with things looking more normal by FY2029.
Revenue growth will likely stay flat (0% to 2%) in FY2027 (the current fiscal year as of July 2026) before slowly picking up in FY2028.
Aggarwal suggests investors take it slow with IT stocks right now, there aren't any big positive surprises coming soon, so patience might pay off.