IT services growth likely to stay soft in near term as clients delay discretionary spends: Equirus

Short summary

Indian IT services firms expect subdued growth in the near term as enterprises delay discretionary spending amid global uncertainties and shift to cost-cutting. Revenue growth is expected to accelerate only when clients transition from cost-cutting to AI-driven transformations. Currency tailwinds and margin improvements provide some upside, but near-term revenue growth will likely remain capped, potentially prompting guidance adjustments.

• •IT services growth likely to remain soft as enterprises delay discretionary spending
• •Revenue acceleration expected when clients shift from cost-cutting to AI transformations
• •Currency and margin tailwinds offset by capped revenue growth and potential guidance cuts

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