Indian IT sector

Indian IT Sector Bottoming Out, 20-30% Index Returns Feasible: Sandip Agarwal

Sandip Agarwal, Fund Manager and Co-founder at Sowilo Investment Managers, believes the worst is behind Indian IT, with 20-30% index-level returns achievable in the near term. He explains the TCV-revenue disconnect as normal given 3-5 year contract conversion cycles and recent client indecision on AI spending. Despite 3-4% annual AI-driven deflation, large IT players can deliver 6-7% dollar revenue growth plus 13-14% EPS growth. He recommends avoiding ER&D exposure and sees FY27 as the cyclical trough with improved performance ahead.