ICRA Sees 2–3 per cent Growth for IT Sector in FY26

04 Jul 2025 CW Team

Credit rating agency ICRA has maintained a stable outlook for the Indian IT services industry, projecting a modest revenue growth of 2–3 per cent in US dollar terms for FY2025–26. This is slightly below the 2.9 per cent growth recorded in FY2024–25.

The forecast is based on an analysis of 15 leading IT firms, including TCS, Infosys, Wipro, HCL Technologies, and Tech Mahindra, which together account for nearly 60 per cent of the industry's revenue. Despite recent gains in operating income, the sector’s earnings momentum is expected to remain weak due to uncertainties stemming from the recent imposition of US tariffs.

According to ICRA, the US and Europe continue to dominate the revenue share of Indian IT services firms, comprising 80–90 per cent of total industry turnover. These regions showed moderate performance throughout FY25, with a slight contraction in the final quarter. The outlook for Q1 FY26 remains cautious, as tariff-linked uncertainty may delay IT spending in key markets.

Hiring activity in the sector is also likely to stay muted until demand conditions improve. However, demand for skilled professionals in areas like artificial intelligence (AI) and generative AI (GenAI) is expected to influence future recruitment plans, particularly in the latter half of the year.

ICRA also pointed to the India–UK Free Trade Agreement (FTA) as a potential positive development. The agreement includes a key provision exempting Indian employees and their UK-based employers from paying social security contributions for up to three years. Though the direct financial impact may be limited, the exemption is expected to enhance workforce mobility and strengthen business ties between the two nations.

Overall, while the Indian IT sector remains resilient, headwinds from global economic conditions and shifting trade dynamics are likely to keep near-term growth in check.

Real Estate

07 Aug 2026

BXB Estates Sets AED 110 Million Jumeirah Golf Estates Record

BXB Estates has completed an AED 110 million residential transaction at Jumeirah Golf Estates, setting a new sales record for the prestigious Dubai residential community.Negotiated by Alfie Tabrez, Managing Partner of BXB Estates, the deal surpassed the previous record of AED 58 million for a completed ready villa in the development.The six-bedroom residence offers 21,714 sq ft of built-up space on a 15,873-sq-ft plot. It features nine bathrooms, four living lounges, a home office, bar lounge, private cinema and rooftop terrace.The property also includes a dedicated wellness area comprising a ..

SECR Floats Rs 6,019 Mn EPC Tender For Paradol Nagpur Link

South East Central Railway (SECR) has invited bids for an Engineering, Procurement and Construction (EPC) contract to build a new broad gauge single line between Paradol Takeoff Point and Nagpur Road Station in Chhattisgarh. The contract carries an estimated cost of Rs 6,019.0 mn and requires an earnest money deposit of Rs 120.4 mn. The work is framed as an EPC assignment intended to strengthen regional rail infrastructure. The tender, issued under number CAO-C-BSP-26-27-15, specifies a completion period of 730 days and a bid validity of 180 days. Two pre-bid meetings are scheduled for 24 Augu..

Indian Railways Reports Nine Per Cent Rise In July Freight Loading

Indian Railways handled 141.3 million tonnes (141.3 mn t) of freight in July, marking a rise of nine per cent year on year. Freight loading maintained a positive trajectory across the network compared with the same month last year. Passenger traffic also increased in July, contributing to higher overall network utilisation. The July outcome continued a pattern of steady monthly gains, reflecting gradual improvement in industrial and logistics activity. The growth in freight volumes reflected stronger demand across multiple sectors and improvements in logistics and train turnarounds. Enhanced r..