IT firms expect muted Q2 growth, stable margins amid budget pressures

India's leading IT firms are projected to report modest revenue growth and stable margins in the second quarter, according to analyst expectations. Discretionary spending by clients is expected to remain under pressure due to geopolitical uncertainties affecting corporate budgets, which is likely to extend decision-making timelines for deals in the coming quarters.

AI advancements are anticipated to reshape traditional service offerings and alter revenue generation cycles for the sector. The combination of cautious client spending and technology-driven changes is expected to keep growth subdued in the near term.