New Delhi, Jan 5 || The Indian IT industry's revenue growth is expected to recover to 4-5 per cent in FY27, leading to high‑single‑digit EPS growth, a report said on Monday.
The report from HSBC Global Investment Research, however, said that IT stocks, up about 15 per cent from their lows, could still perform broadly in line with the market in 2026.
"We still see an improving outlook, but now expect the IT sector to perform in line with the broader market in FY27. IT is no longer a long-term double-digit compounding sector, with the long-term stock return trajectory gradient lower than in the past," the research firm said.
The report forecasted IT stocks to be a "lot more cyclical, requiring active management" of top‑tier ones around their cycles and volatility. It added that a possible cyclical rebound in CY26 or FY27 could give IT stocks further upside on top of recent performance.
The report highlighted that 3QFY26 was impacted by weak seasons and unlikely to surprise positively, noting mixed company‑level signals.