India’s top-tier IT services firms collectively recorded a 26% year-on-year increase in total contract value in Q2 (quarter ending September 2025), according to a report by Mirae Asset Sharekhan.
📈 What’s Driving the Surge
- The deal-pipeline revival follows a prolonged spell of weak demand and delayed projects — signs now point to a rebound as clients begin resuming contracts.
- Analysts attribute much of the renewed momentum to rising investments in artificial-intelligence (AI) and digital-transformation projects, with expectations that AI-related workloads will boost deal activity over the next 2 years.
- On a quarter-on-quarter basis, deal wins rose about 2.8% after a 15.2% drop in the previous quarter, suggesting that the recovery is gaining traction rather than being a one-off spike.
🔍 Broader Implications for the Indian IT Sector
- On a rolling 12-month basis, aggregate deal wins across tracked firms rose to +7.8% — up from just 2.3% in the previous quarter.
- Firms specializing in modernisation, data-engineering, integration, and AI-native services — such as Mphasis, Coforge and Wipro — reported sharper increases in deal values, indicating renewed investor and enterprise confidence in mid-tier and niche players.
- Analysts expect this trend to strengthen further heading into calendar year 2026, as corporate budgets reset and enterprises resume deferred transformation projects.
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