Tata Consultancy Services and Infosys face weak growth for the three months ending September 30. Analysts said AI-led deflation and pricing pressures continue to hurt these IT firms. While TCS and Infosys expect small gains, HCLTech and Tech Mahindra might perform better. Many firms struggle as demand remains low this season.
Sector leader Tata Consultancy Services and its nearest rival, Infosys, are projected to report weak numbers for the three months ending September 30. Analysts tracked by ET on average forecast TCS to post organic revenue growth of 0.5% sequentially and 2.8% from a year earlier. They expect Infosys to report a 1.1% quarter-on-year and 0.2% year-on-year increase in organic revenue, which excludes income from acquisitions.
India's large IT services companies are expected to record another quarter of weak results in what used to be a strong season, as artificial intelligence-led revenue deflation and weak demand continued to weigh on their performance, according to analysts. HCLTech and Tech Mahindra, however, are likely to outperform their rivals in the top-tier group, show analyst reports.Sector leader Tata Consultancy Services and its nearest rival, Infosys, are