India’s top IT companies are set for another quarter of weak earnings. Brokerages warn AI-driven pricing pressure and cautious clients will hurt results.

Five brokerages said the firms could trim annual revenue growth forecasts. The rise of AI has battered the 315-billion-dollar sector, which relies heavily on billable hours.

Companies have been forced to rejig business models and offer steep discounts. The sector has been among the market’s worst performers over the past year.

Jefferies expects the weakest sequential show in three years for the July-September quarter. Revenue growth is projected at 0.7 to 3.5 percent quarter-on-quarter for the top six firms.

TCS kicks off earnings on October 8. Infosys, HCLTech and Wipro report later in the month. The Nifty IT index has dropped about 27 percent in 2026 so far.

Infosys may cut the upper end of its FY27 revenue guidance, brokerages said. HCLTech and Tech Mahindra are expected to do relatively better among large firms. Investors will watch annual guidance and management commentary closely when TCS opens the season.