Indian IT Services Companies to Grow 4-6% in FY2026: ICRA

ICRA has predicted a 4-6% revenue expansion in FY2026 for Indian IT services firms, after an estimated 4-5% rise in FY2025. This estimate represents a subdued growth pace amid concerns over US trade tariffs and macroeconomic pressures in major markets such as the US and Europe. In spite of these hardships, the industry has demonstrated resilience in win of deals and a good overall contract value, offering visibility of revenues. Operating margin is likely to stay flat at 22.5-23.0% in the coming quarters. Attrition rates are likely to stabilize at 12-13% and hiring will remain subdued till the pick-up in growth by FY2026 end. The sector's emphasis on GenAI investments will be expected to drive productivity and cost reduction.

Source: Business News Today