India IT Q2 preview: muted growth, steady margins as AI deflation bites

Analysts at UnearthInsight and Gartner expect India's top-five IT firms to grow 0.5–1% quarter-on-quarter in Q2 FY27 with broadly stable margins. Clients keep discretionary budgets tight, while AI-led revenue stays under 5% of industry topline and erodes demand for traditional services.

• UnearthInsight sees top-five Indian IT firms growing 0.5–1% QoQ in Q2
• FY27 growth estimate held at 3–4%, mostly from $3.6B of M&A deals
• AI revenue under 5% of industry total; Infosys at 8.2%, TCS at $2.6B annualised
• Gartner: up to 50% of managed-services work hard to win by 2030