India IT Update: The P&L Has Started To Confirm The Deal Book
An analyst update to the prior Information Technology AI Musing, using the fresher Q4 FY26 same-store heatmap, earnings-call sentiment through June 9, 2026, and the original sector thesis as the comparison base.
The old view was that Indian IT was bottoming, not turning: order books had improved, but same-store revenue and PAT had not yet earned a full-cycle upgrade. Q4 FY26 moved the evidence one notch in the right direction because revenue and PAT both improved after the weak Q3 profit print, while the call tape stayed broadly favourable rather than euphoric. I would now call this a confirmed bottoming phase, still short of a broad turn. The sector deserves patience where net-new TCV, AI implementation revenue and pricing discipline are visible together. The call work underneath this update read 58 Q4 FY26 transcript records, so the conclusion reflects company commentary as well as the aggregate heatmap.
Generated by AI · Not investment advice. This article is generated by AI and is provided for information only. It is not investment advice or a recommendation to buy, sell, or hold any security. Consult a SEBI-registered investment adviser before acting on it.
Executive Summary
Baseline from the old note: The old view was that Indian IT was bottoming, not turning: order books had improved, but same-store revenue and PAT had not yet earned a full-cycle upgrade. The Q4 update is not a fresh article written from a blank sheet; it is a mark-to-market of that prior work. On the fresher Aurific same-store heatmap, Information Technology Q4 FY26 revenue grew +12.0% YoY versus +10.0% in Q3, EBITDA grew +13.3%, PAT grew +10.0%, and the FY26 partial-year aggregate is now revenue +7.9% / PAT +2.4%. The Q4 sample has n=131 common-panel companies, so it is large enough for a directional sector read, though still partial until every late filer is captured.
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