What Accenture's Q4 Result Means For Indian IT Companies — Read Motilal Oswal's Report

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Motilal Oswal Report

Accenture Plc. reported organic YoY constant currency revenue growth of 1.5% in Q4 FY25, beating consensus estimates and coming in near the top end of its quarterly guidance.

For FY26 (August ending), Accenture has guided for organic YoY cc revenue growth of 0.5-3.5% (1.5-4.5% excluding US Fed business impact). While this is a tad better than last year's starting point (0-3%), the commentary around demand remained stubbornly non-committal – the upper end assumes zero recovery in macros, whereas the lower end allows for further deterioration.

Among verticals, financial services again carried most of the growth. Public Service faced headwinds due to Federal budget constraints. Geographically, Americas grew 5% cc (8% excluding Federal), led by banking and industrials. EMEA region was up 3% cc.

Read-through for Indian IT:

We believe Indian IT services’ revenue and commentary might mirror the stasis seen in Accenture, and expect Q2 FY26 to largely be muted (adjusting for some seasonal gains).

Indian IT currently faces multiple headwinds:

1. a muted demand environment,

2. deflation from GenAI (or otherwise)-led productivity gain,

3. potential limitations to onsite scope expansion in FY27E revenue from an unpredictable H1B program.

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