Indian IT Recovery Gains Momentum, Stronger Growth Ahead: Report

Positive vibes are building in India’s IT landscape, with clear recovery indicators and an enhancing growth outlook on firm foundations, according to a Monday report. BNP Paribas’ insights come at a time when investors are still treading carefully.

Aggregated figures point to progressive demand recovery and earnings momentum. The firm highlights increased recruitment, steady managerial guidance, and ongoing cloud services expansion as drivers of near-term optimism.

Rupee depreciation versus the dollar could sweeten the earnings pie further. Expectations for March 2026 quarter include marginal qoq revenue rise for IT firms, with vigorous yoy expansion.

Blue-chip companies should deliver reliable results, while targeted mid-sized peers propel broader growth. Improvements are budding in tech and comms verticals; the rest of the portfolio stays balanced.

Favorable forex dynamics promise margin durability. Stable revenue progression is anticipated from leading IT names in FY2027. Citing currency benefits, BNP Paribas has boosted sector FY27-28 earnings forecasts by roughly 2%.

Amid global AI fervor, Indian IT leaders are ramping up through big-tech collaborations and fresh platform launches targeting gen AI and business solutions, fortifying their competitive edge for the future.