According to CareEdge Advisory, India’s IT sector is navigating global uncertainty with strategic resilience and innovation. In FY25, constant currency revenue growth stood at 3%, and FY26 is projected to maintain a 3–5% growth pace. Key drivers include strong deal wins in late FY25, rising demand for cloud transformation, generative AI, and cybersecurity. Despite economic concerns and tariff pressures from key markets like the US, Indian IT leaders are focused on high-value service delivery and AI-led transformation.
Top firms have prioritized client retention and expanding existing accounts over acquiring large-ticket clients. Although attrition rose slightly in late FY25, total headcount also increased. EBITDA margins showed marginal improvement despite cost pressures. The industry remains cautiously optimistic for FY26 as it balances investment in emerging technologies with stable operational margins.