Indian IT Services Sector to Maintain Steady Growth in Fiscal 2026

The Indian IT services sector is expected to continue its growth trajectory with a projected 6-8% increase in revenue during fiscal 2026, despite ongoing macroeconomic challenges and uncertainties in key markets like the US and Europe.

Currency depreciation is anticipated to provide an additional 2% boost to revenues. This marks the third consecutive year of mid-single-digit growth for the sector. The majority of revenue comes from sectors such as banking, financial services, insurance (BFSI), retail, manufacturing, and healthcare, with technology, communications, and media contributing to the rest.

The BFSI and retail sectors showed slight recovery in fiscal 2025, while manufacturing and healthcare growth remained sluggish. Despite cautious hiring, the sector remains resilient, driven by AI and generative AI adoption, which enhances service offerings.

Players in the IT services space are also focusing on acquisitions to expand their digital capabilities and product portfolios. The study analyzed the top 24 Indian IT providers, representing 55% of the sector’s total revenue.