Crisil forecasts muted IT growth

S&P Global — CRISIL Ratings Ratings released a report on July 16, 2026, forecasting that Indian IT services revenue growth will remain muted at 1-3% in fiscal 2027 and 2-4% in fiscal 2028, due to AI-driven disruptions, weak discretionary spending, and geopolitical uncertainties. The report notes that AI is challenging traditional revenue models, intensifying pricing pressure, and slowing execution. Mid-tier IT companies may outperform larger peers, but overall momentum is limited. Net headcount additions are expected to remain muted as firms prioritize automation and AI skills. Operating margins are expected to stay healthy at 22-23% this fiscal, aided by rupee depreciation, but pressures may intensify next fiscal. Credit profiles remain stable due to strong balance sheets and low debt.