Tech spends subdued in Q1

India’s IT services sector is likely to post a “soft” June quarter as enterprises stay cautious about discretionary technology spending amid global macroeconomic uncertainty, geopolitical developments and a focus on AI-led efficiency, according to Equirus Securities.

Equirus expects the top six Indian IT services companies to report constant-currency organic US-dollar revenue performance ranging from a 1.7 per cent decline to 1.1 per cent growth quarter-on-quarter.

Wipro IT Services is expected to be at the lower end of the range, while Tech Mahindra is likely to lead the large-cap pack. Among mid-sized companies, Persistent Systems, Mphasis and eClerx are expected to post relatively stronger organic growth, it said.