Moneycontrol Pro Panorama | Good tidings for Indian IT from Accenture's results

The results indicate overall a steady demand environment.

In a business such as IT services, investors get a fair idea of the market situation only when companies release results and managements talk to external analysts. Accenture’s latest quarterly results provide a dipstick view of the state of the IT services market. Revenues at the $70 billion IT company grew at the higher end of the guidance in the quarter ending November 2025.

The growth was driven by financial services, a major business segment for Indian IT companies. The 10 percent rise in order bookings to $20.9 billion was led by managed services. Listed Indian IT companies largely provide managed services.

The results indicate overall a steady demand environment. “While the demand environment and discretionary spending remain broadly unchanged, Accenture’s commentary is suggestive of a stable Q3 for Indian IT service players except for the usual seasonal weakness,” writes Madhuchanda Dey of our research team.

Pertinently, the adaption of AI technologies by business enterprises is expected to yield large data and digital modernisation work for IT companies. “The actual rewiring is a huge amount of work,” said Julie Sweet, Chair and Chief Executive Officer of Accenture, in response to a question on the business opportunity for managed services in an earnings call.

Domestic IT companies have been alluding to large technology modernisation opportunity and relatively better demand environment in financial services. Tata Consultancy Services (TCS), Infosys, and HCL Technologies saw faster growth in financial services divisions compared to overall growth rates of the companies last quarter. “We expect growth momentum in the financial services vertical to continue in the near term for Indian IT services,” analysts at Nomura said in a note after the Accenture results.

On technology modernisation, investors have been worried about the deflationary impact of AI technologies on revenues of IT companies. The slow translation of new AI technologies into revenues for local IT companies have been a dampener for investors.

However, Accenture’s latest results indicate accelerating pace in AI technology adaption by clients. So much so Accenture said it will stop reporting specific advance AI figures as the technology has become all-pervasive.

“We've now reached a point where advanced AI is being embedded in some way across nearly everything we do, and many of our clients are focusing on moving beyond standalone proof of concept or initiatives,” Julie Sweet of Accenture said in the call.

All major Indian IT companies are realigning their businesses towards AI technologies. While some companies have begun disclosing specific business data pertaining to AI, the coming quarterly results will indicate their pace of success in new technologies. Note that Accenture is believed to be ahead of Indian IT in scaling up its business in new technologies.

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