After an elongated period of weakness, Saluja believes all IT companies are expected to post positive sequential growth in the September quarter, adding that the intra-quarter deterioration from earlier quarters has dissipated. He also believes demand in stabilising.

“All companies are to report positive sequential growth. The intra-quarter deterioration, which was there in June and March quarters, has stopped. Demand in a way is stabilising,” he said.

Saluja added by pointing out Gen AI deflation as a key factor in FY26, but said that the outlook for FY27 will be important.

“It is a reality that growth rate for the industry is well below the normalised trend rate and FY26 is going to be impacted at a yearly level because of tariff wars as well as Gen AI deflation,” he said.

“What happens in FY27 will be important and the growth acceleration during the period, although I don’t expect the companies to talk about it,” he added.

Finally, Saluja offered his top picks for the upcoming earnings season. He expects Infosys and Tech Mahindra to deliver strong performances in Q2 while TCS and Wipro are likely to come out with weak earnings.