After three years of muted growth, the Indian IT services industry is poised for a sharp recovery beginning 2026, driven primarily by accelerating demand for artificial intelligence (AI) services, according to a sector thematic report by HDFC Securities Institutional Equities.

IT firms have transitioned from traditional digital transformation projects toward AI-centric engagements, with AI deals now forming nearly 74% of all contracts signed in the last six quarters, the report said.

Companies such as rel=”dofollow” href=”https://economictimes.indiatimes.com/tata-consultancy-services-ltd/stocks/companyid-8345.cms” target=”_blank”>TCS, rel=”dofollow” href=”https://economictimes.indiatimes.com/infosys-ltd/stocks/companyid-10960.cms” target=”_blank”>Infosys, HCLTech, rel=”dofollow” href=”https://economictimes.indiatimes.com/wipro-ltd/stocks/companyid-12799.cms” target=”_blank”>Wipro, rel=”dofollow” href=”https://economictimes.indiatimes.com/ltimindtree-ltd/stocks/companyid-3318.cms” target=”_blank”>LTIMindtree and rel=”dofollow” href=”https://economictimes.indiatimes.com/tech-mahindra-ltd/stocks/companyid-11221.cms”…

After three years of muted growth, the Indian IT services industry is poised for a sharp recovery beginning 2026, driven primarily by accelerating demand for artificial intelligence (AI) services, according to a sector thematic report by HDFC Securities Institutional Equities.

IT firms have transitioned from traditional digital transformation projects toward AI-centric engagements, with AI deals now forming nearly 74% of all contracts signed in the last six quarters, the report said.

Companies such as rel=”dofollow” href=”https://economictimes.indiatimes.com/tata-consultancy-services-ltd/stocks/companyid-8345.cms” target=”_blank”>TCS, rel=”dofollow” href=”https://economictimes.indiatimes.com/infosys-ltd/stocks/companyid-10960.cms” target=”_blank”>Infosys, HCLTech, rel=”dofollow” href=”https://economictimes.indiatimes.com/wipro-ltd/stocks/companyid-12799.cms” target=”_blank”>Wipro, rel=”dofollow” href=”https://economictimes.indiatimes.com/ltimindtree-ltd/stocks/companyid-3318.cms” target=”_blank”>LTIMindtree and rel=”dofollow” href=”https://economictimes.indiatimes.com/tech-mahindra-ltd/stocks/companyid-11221.cms”…