India, July 8 -- The Q1 FY27 earnings season comes at a crucial time for the Indian IT sector. The Nifty IT index has fallen 13.45 percent since TCS kicked off the results season in April with its Q4 FY26 earnings. Even before that, the sector had corrected sharply, with the index down 31.48 percent from its peak as AI-related concerns and weak global demand hurt sentiment.

The June quarter is expected to remain soft, with weak discretionary spending and AI-led efficiency gains continuing to weigh on revenue growth and margins. While Coforge is expected to lead the sector in revenue growth, Infosys and Tech Mahindra are likely to stand out among Tier-1 companies. Investors will also closely watch FY27 guidance, deal wins, and management ...