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The report, released by BNP Paribas India, highlights that while Indian IT companies continued to lag global peers in revenue growth during the September 2025 quarter, their performance in securing new deals remained strong, signalling a healthier pipeline for the coming quarters.

India’s IT sector is showing early signs of a gradual recovery, with deal wins improving and revenue outlook stabilising, a new report said on Friday.

The report, released by BNP Paribas India, highlights that while Indian IT companies continued to lag global peers in revenue growth during the September 2025 quarter, their performance in securing new deals remained strong, signalling a healthier pipeline for the coming quarters.

Global Players Outpace Indian Firms

According to the findings, the global IT services industry reported 3.8 per cent year-on-year revenue growth in USD terms during the September quarter, slightly lower than the 4.3 per cent growth seen in the June quarter. However, India-based IT firms grew only 1.2 per cent in constant currency.

This slower pace was partly due to stronger performances by global players such as Accenture, EPAM and ADP, along with the euro’s appreciation against the dollar.

BFSI Leads; Communications Lags

Among industries, BFSI led revenue growth with 7.9 per cent year-on-year expansion, while verticals like retail, manufacturing, and energy also performed well. Communications remained the weakest segment. Region-wise, revenue from the Americas grew 4 per cent, slightly slower than before, while Europe showed a stronger recovery with 4.3 per cent growth.

Findings Based on 24 Global IT Firms

The report, led by analyst Kumar Rakesh is based on an analysis of quarterly results from 24 major IT services companies across India, the Americas, and Europe. This sample includes 13 Indian firms and reflects broad global industry trends. Despite slower revenue expansion, the report points to improving business sentiment.

Project Delays Ease; Sentiment Improves

The firm’s outlook index, based on management commentary, suggests that project delays bottomed out in the June quarter, and companies are now seeing better visibility on deal signings.

Margins have also improved modestly due to higher productivity, better utilisation, and lower attrition levels. Headcount increased slightly, but productivity gains helped offset cost pressures.

Indian IT Firms Lead in Deal Value

The report adds that Indian IT companies outperformed global peers in total contract value (TCV) of deals signed during the quarter. Vendor consolidation trends continued, with top clients contributing a larger share of revenue across major firms.