{
  "id": 11895288,
  "title": "IT Q2 preview: Muted growth, steady margins likely; deal conversion, AI deflation under lens",
  "url": "https://urgent.news/2026/10/04/it-q2-preview-muted-growth-steady-margins-likely-deal-conversion-ai",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-04T09:34:17.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/info-tech/it-q2-preview-muted-growth-steady-margins-likely-deal-conversion-ai-deflation-under-lens/article71543332.ece"
  },
  "original_language": "en",
  "account": "India's leading IT companies are expected to experience modest revenue growth and stable margins in the upcoming July-September quarter. Research advisory UnearthInsight predicts a quarter-on-quarter growth of 0.5-1 percent, barely surpassing the April-June period. Gartner believes this quarter will be slightly stronger than the previous one due to previously issued contracts converting into revenue. However, client budgets remain tight due to geopolitical tensions and long decision cycles. Gaurav Vasu, founder of UnearthInsight, anticipates a lack of budget revival and stresses that margins will remain under stress due to wage hikes and AI investments. Gartner Senior Principal Analyst Biswajit Maity expects margins to remain stable, with only slight improvements in select tier-one players. The Q2 earnings season begins with TCS on October 8, followed by HCLTech on October 12 and Infosys on October 23. UnearthInsight anticipates a modest full-year growth of 3-4 percent, mainly driven by inorganic growth rather than a surge in demand.",
  "summary": "The Q2 earnings season begins with Tata Consultancy Services (TCS) on October 8.",
  "key_points": [
    "India's IT firms forecast modest Q2 growth of 0.5-1%",
    "Client budgets tight due to geopolitical tensions and long decision cycles",
    "Margins under stress from wage hikes and AI investments"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Economic Times Tech",
        "title": "IT Q2 preview: Muted growth, steady margins likely; deal conversion, AI deflation in focus",
        "url": "https://urgent.news/2026/10/04/it-q2-preview-muted-growth-steady-margins-likely-deal-conversion-ai-11917146",
        "published": "2026-10-04T11:49:59.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}