India’s leading IT services companies are bracing for modest revenue growth in FY27 as geopolitics and a tougher macro backdrop weigh on client spending. While AI demand is rising, it is also creating pricing pressure, even as margins remain broadly stable. Analysts are now watching whether new AI services can translate headwinds into growth through cost control and faster capability buildout.
Tata Consultancy Services and Wipro show revenue declines even as deal pipelines stay healthy, pointing to slow conversion of deals into billed revenue. Analysts also warn that AI is reshaping buyer expectations, intensifying competition and pushing firms into more discounting. The result: growth may look strong upfront, but monetisation is lagging across the sector.
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