New Delhi, Oct. 4 -- The Indian IT services sector will kick off the September quarter earnings season next week, starting with Tata Consultancy Services (TCS). The July-September quarter remained challenging, marked by subdued discretionary spending, elongated decision-making cycles, cautious client sentiment amid macroeconomic uncertainty, and disruption from AI-driven technology shifts. The demand environment has neither improved nor worsened.

IT sector Q2 results are expected to stay muted after Q1 was impacted by tariff-related uncertainty. The broader macro backdrop remains weak, further weighed down by the recent H1B visa fee hike announced by US President Donald Trump.

With no material change in operating conditions, analysts ex...