NEW DELHI: India’s IT services sector is showing early signs of recovery with improving growth visibility and strengthening fundamentals, a new report said on Monday.
The data compiled by BNP Paribas highlighted that despite cautious investor sentiment, underlying indicators suggest a gradual rebound in demand and earnings momentum.
The brokerage noted that near-term trends are turning more supportive, backed by rising hiring activity, steady management commentary, and continued growth in cloud revenues.
It added that favourable currency movements, particularly the depreciation of the Indian rupee against the US dollar, are further aiding the sector’s earnings outlook.
For the March quarter (Q4 FY26), the report expects Indian IT companies to deliver modest sequential revenue growth, which would translate into a sharper year-on-year expansion due to a favourable base.