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Indian IT firms face Q2 risks despite seasonally strong quarter
The outlook is tempered by AI driven productivity pressure and ongoing competition, even as BFSI could stay supportive and manufacturing remains soft.
Q2 is typically a seasonally strong period, but macro uncertainty and a weak demand environment could limit growth for tier-I IT companies, LiveMint Markets writes.
The piece also points to AI-led productivity pressures and intense competition as additional factors that may weigh on results.
It expects BFSI to remain supportive, while manufacturing looks soft, and says hi-tech, communication and retail could see mixed trends.
LiveMint Markets adds that Accenture’s solid Q4FY26 result may offer some indication for managed services demand, but investors are cautioned not to extrapolate too much from Accenture’s guidance alone.