India's IT firms trade AI disruption concern for revenue stability
India's IT industry isn't stressing over AI disruption as much anymore. Instead, companies are now putting their energy into keeping revenue stable and aiming for long-term growth.
Even with slower revenue numbers, IT stocks are holding up well.
Engineering-focused teams are helping companies use AI in smart ways, which is keeping profits healthy and investors optimistic.
Indian IT balancing AI and margins
Top-tier IT firms saw only small increases in revenue in the second quarter of FY27 (July-September 2026), while midsize players did a bit better.
The big challenge now is balancing investments in AI with the need to protect profit margins.
New types of business and better deal activity are giving the sector a lift, even though overall demand is still pretty quiet, so there's cautious optimism for what's ahead.