“Motilal Oswal Financial Services anticipates fresh margin pressures for the IT sector in FY27. This is attributed to factors such as wage hikes, increased AI-related investments, and large-deal ramp-ups, which are expected to weigh on profitability. Additionally, pricing pressure in a weak demand environment and ongoing deflationary trends are likely to further constrain margins.”

Motilal Oswal Analysis’s track record: 6 graded calls · 95% CI 19–81%