Sharply lower FY26E rev growth forecast for India IT Services coverage to 4% YoY (constant Fx), a 230 bps cut vs previous forecast, & now only marginally higher than 3.5% YoY growth in FY25E
This cut is a function of macro uncertainty, particularly in US
Our US economists recently downgraded their US GDP forecasts to 1.7% from 2.4% (at start of the year) & marginally raised the 12m recession probability to 20% from 15%, driven by negative impact of tariffs