Demand Revival: IT services firms log 26% jump in Q2 deal wins

India's top tier software services firms together reported a 26% gain in total contract value year-on-year in the second quarter ended September 2025, according to Mirae Asset Sharekhan, pointing to a clearer turnaround in new signings after a period of weak demand.

Analysts are anticipating that the momentum will strengthen over the next two years as clients increase their spending on artificial intelligence projects.

Additionally, project delays appear to have bottomed in the June quarter, analysts at BNP Paribas noted, with management commentary from Indian IT vendors now pointing to better traction in signings.


On a quarter-on-quarter basis, sector deal wins recovered by 2.8% after a 15.2% drop in the prior period, led mainly by HCLTech, while Infosys, Mphasis and LTIMindtree saw lower wins, as per the BNP note.

“Barring a significant macro shock, we expect demand to stabilise, followed by a meaningful inflexion in calendar year 2026 as enterprise budget flushes resumes and deferred programs are released,” analysts at Mirae Asset Sharekhan said.

On a last-twelve-months basis, aggregate deal wins across the tracked IT services firms grew 7.8% in the September 2025 quarter from 2.3% in the previous quarter. This was supported by sharp increases in LTM deal values at Mphasis, Coforge and Wipro, partly offset by declines at Infosys, Atos and Accenture.

Meanwhile, Nuvama highlighted that deal momentum has nonetheless remained consistent over the last few quarters despite ongoing tariff and geopolitical uncertainties, indicated by growth in contract values on an LTM basis.

Companies leveraging AI-driven solutions to strengthen their service offerings and secure new deals are expected to benefit, the report added.

Mirae Asset Sharekhan said,” Even as AI-driven productivity gains reduce some legacy services' work, we anticipate a new cycle of AI-centric workloads and AI-native deals to become a tangible revenue tailwind starting FY27.”

Motilal Oswal estimates that companies are clocking growth in contract values in application modernisation, data engineering, and integration-led work, offsetting their productivity deflation in FY27, in addition to the AI-led revenues.