Midcap IT likely to see better H2, AI-led deflation weighs on FY27 growth: Anand Rathi
Source: The Times of India· ANI· August 24, 2026
SynaBot summary
Indian midcap IT firms anticipate stronger deal closures and operational efficiency in the latter half of fiscal year 2027. However, overall revenue growth for the year is expected to be subdued due to AI's deflationary impact and other global economic factors.
Key takeaways
- AI's deflationary effect will temper IT sector revenue growth.
- Improved deal conversion expected in the second half of FY27.
- Geopolitical issues and project delays also impact growth.
- Operational leverage gains are a potential positive for firms.
Why it matters
This outlook suggests that businesses relying on IT services may see cost efficiencies emerge, particularly from AI-driven automation. Companies should monitor how these trends affect project timelines and the pricing of AI-related development and support.
This story was reported by The Times of India. Read the full original article:
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