IT Q2 preview: Muted growth, steady margins likely; deal conversion, AI deflation in focus

India's top IT companies are likely to report muted revenue growth and broadly steady margins for the July-September quarter as clients keep discretionary budgets tight, with focus on how quickly strong bookings turn into revenue and how far AI is deflating traditional services, analysts said. Research advisory UnearthInsight expects the top-five IT companies to grow 0.5-1% quarter-on-quarter in the second quarter of FY27, with little improvement over the April-June period.