New Delhi, Jul 8 (PTI) Top Indian IT companies are bracing for a “modest” Q1 FY26, hurt by sluggish demand in various verticals, such as consumer and manufacturing segments, but mid-tier firms should fare better, according to brokerages. A weak dollar against a basket of major currencies will lead to 100-200 basis points of cross-currency upside, aiding estimates, analysts said. The IT earnings season opens on Thursday (July 10) with results of Tata Consultancy Services (TCS), followed by HCL Tech on July 14, and Tech Mahindra as well as L&T Technology Services on July 16. LTIMindtree is scheduled to announce Q1 numbers on July 17, while Infosys will declare its numbers on July 23. “The IT sector is expected to post mixed revenue growth in Q1, with tier-1 reporting muted constant currency revenue growth, while mid-tier is expected to deliver strong growth,” HDFC Securities said in a note on Q1 FY26 results preview. The huge cross-currency tailwind in the quarter will result in strong US dollar growth sequentially in terms of revenue. HDFC Securities believes that companies will maintain their full-year FY26 guidance amid the ongoing global economic uncertainty. Factors, such as US tariff measures and broader macroeconomic challenges, may limit discretionary spending, but demand deterioration has been lower than expected at the start of the quarter. “The deal pipeline remains robust, particularly in areas like cost optimisation, infrastructure modernisation, and AI initiatives,” it pointed out. ICICI Securities opined that the 90-day pause in the US tariffs standoff has somewhat quelled economic nerves in the largest market for IT companies, with Nifty IT rallying about 10 per cent over the last two months. “Yet, this detente has failed to spur a corresponding uptick in new deal closures. Given the backdrop, we anticipate modest revenue growth for IT companies (except Coforge and Persistent) and the ER&D (Engineering Research and Development) pack in Q1FY26,” it said, noting that cross-currency tailwinds will likely provide about 100–200 basis points of quarter-on-quarter lift to dollar revenue growth. Put simply, one basis point is one-hundredth of a percentage point. ICICI Securities, in its report, pointed to a wider growth gap between mid-cap and large-cap peers. The ability to proactively shape large deals and quickly tap into high-growth areas, and a larger revenue share from the BFSI vertical, which seemingly is not affected by the tariff-led macro friction, were cited among the reasons for this. “Demand remains sluggish in consumer, manufacturing, auto, logistics and communication verticals. With the sector beset by a volatile macro environment, deal TCV (Total Contract Value) shall be a crucial metric to be watched closely,” ICICI Securities said. According to a report by Motilal Oswal, while a host of geopolitical events as well as tariff uncertainty would have played spoilsport on notable deal signings, widespread in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. Follow these steps: 1. **Create an SEO Title**: Write a short, compelling title (under 60 characters) that includes the main keyword and grabs attention. 2. **Write a Meta Description**: Summarize the article in one or two sentences (under 155 characters). Make it engaging and include the primary keyword naturally. 3. **Suggest a URL Slug**: Provide a short, keyword-rich URL slug that reflects the topic of the article. 4. **Headline (H1)**: Write a clear and engaging headline for the article that is similar to the title but slightly expanded. 5. **Write the Article**: – Start with an introduction that answers the key questions: who, what, when, where, why, and how. – Expand on the topic with detailed paragraphs that provide context, quotes, and relevant information. – Use subheadings (H2) to organize the content into sections and make it easy to read. – Include related keywords naturally throughout the article. – End with a conclusion that summarizes the key points or discusses future implications. 6. **Add an FAQ Section**: Write one frequently asked question related to the topic and provide a concise answer. Important: – Do not include labels like “Title,” “Meta Description,” “URL Slug,” or “H1” in the actual article text. – Keep all SEO elements separate from the main content. – Ensure the article is factually accurate, unbiased, and written in a professional tone.
Leading IT companies are expected to experience modest growth in the first quarter, while mid-tier firms are likely to surpass them in performance, according to IT analysts.
