Not just June quarter, IT companies face a washout H1FY27

Indian IT sector is bracing for a washout H1FY27 with Q1FY27 results starting from TCS on 9 July likely to be flat sequentially, according to Jefferies. Persistent cautious discretionary spending, AI-led budget reallocation, delayed decision-making, and around 200 bps West Asia conflict impact point to muted performance. JP Morgan expects Infosys, HCL Technologies, and Wipro to cut FY27 guidance post-Q1, while the Nifty IT index has already fallen 28% in 2026 and trades at a steep discount to its five-year average.