The Indian information technology (IT) sector could see a marginal improvement in revenue growth in 2026-27 (FY27), with mid-caps likely continuing to outpace their large-cap peers, according to Abhishek Bhandari, Executive Director of Technology and Internet at Nomura.

Bhandari is now more positive on the sector than last year, citing early signs of artificial intelligence (AI) related spending and favourable currency movements.

Nomura's recent report projects that revenue growth for large-cap IT companies could improve to 4.5% in the next financial year, up from the current 3%. A key factor influencing profitability is the Indian rupee's exchange rate against the US dollar. Bhandari explained that a 1% depreciation in the rupee typically translates to a 25 to 30 basis point improvement

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