Mumbai, July 14 -- Brokerages said the company's decision to maintain its constant currency revenue growth guidance of 1%-4% for FY27 suggests demand recovery is progressing slower than expected. While HCLTech reported record first-quarter deal bookings, analysts believe clients continue to defer discretionary technology spending amid macroeconomic uncertainty.

Several analysts have also lowered their expectations for India's IT services sector as global enterprises rein in non-essential technology investments. The growing adoption of advanced artificial intelligence is also seen reshaping traditional software services business models.

One foreign brokerage reiterated its 'underweight' rating, citing persistent weakness in discretionary...