- Motilal Oswal warns of near-term pressure on Indian IT stocks due to weak global demand
- Accenture's Q3 FY26 showed 3% YoY revenue growth and lowered FY26 growth guidance
- Soft demand driven by slower client decisions and weak discretionary spending noted
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Motilal Oswal Report
Indian IT stocks are likely to remain under pressure in the near term as global demand cues weaken, with the brokerage firm Motilal Oswal flagging a negative read-through from Accenture's latest quarterly update for the sector.
The brokerage noted that Accenture's Q3 FY26 performance reflected continued softness in demand, driven by slower client decision-making and weak discretionary spending. Revenue growth remained modest at 3% YoY in constant currency, while the company also trimmed its FY26 growth guidance, signaling a cautious outlook for global IT services.
Motilal Oswal believes this has direct implications for Indian large cap companies, given their high exposure to global outsourcing and enterprise technology spending.
The brokerage also believes the AI implementation opportunity will surely materialize, but it may not accrue to the traditional vendors like it did in the past and a new, platformised AI native vendor template will emerge.
OpenAI's DeployCo (and Anthropic's services company as well) is the first credible blueprint of the next-gen system integrator. This will not be a winner-takes-all market and multiple vendors would survive as seen in the past cycles, but this will not be without a painful period of transition for the existing book of business.
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