AI-Driven Growth on Horizon: Indian IT Sector Eyed for Robust H2FY26

The Indian IT sector is poised for growth in H2FY26, propelled by AI projects, enhanced client engagement, and improved discretionary spending, according to Centrum Research. Key recovery sectors include BFSI, while retail and automotive face challenges. Digital transformation and AI investments promise sustained demand and growth.

The Indian information technology (IT) sector is gearing up for an optimistic second half of the fiscal year, driven by AI-focused projects and improved client relationships, a new report by Centrum Research reveals.

The study highlights enhancements in conversion rates and deal ramp-ups anticipated to fuel growth throughout H2FY26. Key growth sectors include banking, financial services, and insurance (BFSI), thanks to a strong deal pipeline and modernization efforts. However, retail and automotive industries may struggle under external policy pressures.

The report underscores persistent interest in digital transformation, with AI, cloud, and data investments sparking medium-term demand recovery. While Q2FY26 saw cautious growth in IT firms, steady margins persist through strategic cost control, automation, and aligned hiring strategies, ensuring resilience in the sector.