Mumbai, Aug. 3 -- India's large-cap IT services companies reported a muted start to FY27, with artificial intelligence (AI)-led pricing pressure and geopolitical uncertainties, particularly the Middle East conflict, weighing on revenue growth even as companies increasingly turned to acquisitions to bolster business, according to an Anand Rathi report.

The report said revenue growth remained subdued during the June quarter, with median constant-currency sequential growth at around 0.35 per cent, while margins came under pressure from wage hikes, AI-driven deflation and competitive pricing.

"Revenue growth continue to remain weak with median CC q/q growth at ~0.35%... Despite INR depreciation (~3.3%), median EBIT margin stood at ~16.3%......