Indian IT firms face muted start to FY27 amid AI, geopolitical woes

Indian large-cap IT firms had a muted start to FY27 with weak revenue growth due to AI-led pricing pressure and geopolitical uncertainties, per an Anand Rathi report.

The report highlights margin pressures but notes that AI monetization is emerging as a growth area.

Firms are using mergers and acquisitions (M&A) to drive growth despite the challenging environment.