IT Services Deal Wins Soar 26% in Q2 on Strong Demand Revival

India, Dec 08 : India’s leading software services companies recorded a 26% year-on-year growth in total contract value in Q2 ended September 2025, signaling a clear revival in deal activity after a period of weak demand, according to Mirae Asset Sharekhan.

Analysts expect this momentum to strengthen over the next two years as clients increasingly invest in artificial intelligence (AI) projects. Project delays appear to have bottomed in the June quarter, with vendor commentary pointing to improved traction in new signings.

Quarter-on-quarter, deal wins rose 2.8% following a 15.2% decline in the previous quarter, led by HCLTech. Infosys, Mphasis, and LTIMindtree reported softer wins, as per BNP Paribas.

“Barring a significant macro shock, demand is expected to stabilise, with a meaningful inflexion in 2026 as enterprise budgets reopen and deferred programs are released,” said Mirae Asset Sharekhan analysts.

On a last-twelve-month (LTM) basis, aggregate deal wins grew 7.8% in the September 2025 quarter, up from 2.3% in the previous quarter, supported by sharp increases at Mphasis, Coforge, and Wipro, partially offset by declines at Infosys, Atos, and Accenture. Nuvama noted that deal momentum has remained consistent despite tariff and geopolitical uncertainties.

AI-driven solutions are emerging as a key differentiator. Mirae Asset Sharekhan added, “Even as AI-driven productivity gains reduce some legacy work, a new cycle of AI-centric workloads and AI-native deals is expected to become a tangible revenue tailwind from FY27.”

Motilal Oswal highlighted that contract value growth in application modernization, data engineering, and integration-led projects is helping offset productivity deflation, alongside AI-led revenues that are likely to accelerate further.