India IT: Margin Confirms; Demand Still Needs Constant-Currency Proof

Reported growth is strong and margin is positive, but translation and demand remain separate underwriting questions.

Analyst memo

The prior note is marked to the substantially loaded Q1 tape. The earnings recovery is investable; a broad volume recovery is not yet proven. The exhibit separates aggregate, median, sub-industry and coverage evidence.

The note this updates

India IT Update: The P&L Has Started To Confirm The Deal Book · June 30, 2026

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Executive Summary

On one aligned company cohort, Q1 revenue grew +16.5%, EBITDA grew +17.9% and PAT grew +12.9%; operating margin changed +0.25pp. The same-store aggregate compares with median-company revenue of +14.4% and median PAT of +6.3%. The Q1 FY2027 revenue-loaded coverage set contains 197 companies, or 88.3% of the sector's 223 classified names. Those reporters represented 98.9% of all loaded Q1 FY2026 revenue for that fixed universe. This is loaded analytical coverage, not regulatory filing completeness.

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