Moderate growth rate in FY25 likely for IT sector

New Delhi: As the IT sector goes through muted revenue growth, companies have become more conservative in their FY25 projections, baking in anticipated delays in executions and project closure activities, market analysts said on Friday.

The revenue growth outlook for FY25 has been discouraging, with tier-1 IT companies expected to report below mid-single digit growth on average, while tier-2 firms capping their revenue growth to high-single digits.

“However, if the spending recovery coexists with an anticipated macro recovery in the near-term, then we might see an upward revision to the estimates for the companies as they progress through the year,” said analysts from financial services organisation Prabhudas Lilladher.

FY24 ended with another quarter of weak performance within IT services. Leading IT companies in the country saw a drop of nearly 70,000 employees in the last fiscal year.