The January-March quarter results for major Indian IT companies have highlighted persistent concerns about demand amid geopolitical risks and rising pricing pressures. The Nifty IT index experienced a significant decline of over 10% for the week ending April 24, 2026, reflecting investor anxiety. HCL Technologies has revised its revenue growth forecast for FY27 down to 1-4%, while Infosys expects its growth to moderate to 1.5%-3.5%. In contrast, Tata Consultancy Services (TCS) reported robust numbers and anticipates higher international revenue growth. Experts note that while AI adoption is increasing, leading to cost-efficiency demands, it also pressures pricing, potentially resulting in an annual revenue deflation of 3-3.5%. The IT sector is described as being in a consolidation phase, with growth visibility remaining low. Analysts recommend focusing on companies that are investing in AI and adapting to the evolving market landscape, while cautioning against large-cap IT stocks in the short term due to anticipated price corrections.