Midcap IT likely to see better H2, AI-led deflation weighs on FY27 growth: Anand Rathi
Anand Rathi Shares and Stock Brokers projected improved deal conversion for India's midcap IT sector in H2 FY27, despite muted revenue growth due to AI-led deflation and geopolitical disruptions. Q1 FY27 saw a decline in median year-on-year revenue growth to 2.1% from 3.8%. The brokerage remains cautiously positive, expecting execution-focused companies to benefit from vendor consolidation.