Indian IT firms see modest Q3FY26 revenue growth, led by BFSI, tech sectors, and AI-driven efficiency.

Indian IT firms are expected to see slow revenue growth in Q3FY26, with Tier 1 companies posting 0.2% to 1.7% quarter-on-quarter gains in dollar terms, driven by strong performance in BFSI and tech sectors and ramp-up of new deals. Tier 2 firms are projected to outperform. A 2.1% rupee depreciation supports INR revenue, though cross-currency headwinds may offset some gains. Margins are expected to stay stable despite lower utilization from seasonal furloughs, aided by cost controls and AI adoption boosting productivity. Demand remains steady, focused on cost optimization and vendor consolidation.