FY 26 will be worse for IT service companies! – fy 26 will be Worse for it service companies – Business Standard

Facebook Twitter Linked In Whatsapp Gmail The US government’s tariff increases may increase the challenges of the IT service industry. This fears have been expressed in the report of Kotak Institutional Equities. The report highlights that these tariffs may increase inflation worldwide and slow the economic growth. Also, the risk of recession in the US and other developed economies may increase. The report said, “In the beginning of the year (FY), the decisions can be deferred due to uncertainty and an increase in the June quarter. This means that in the case of many companies, the estimated FY 26 can now be worse than FY 25. The report reduced the estimated revenue hike of FY 27 to 1.2 to 3.4 percent and the EBIT margin by 10 to 50 basis points, which will reduce the income of 1.6 to 5.8 percent per share. This uncertainty also increases because the landscape of the tariff can be revealed in different ways. The report said, ‘Prospective results may increase uncertainty. Considering these increased uncertainties, we reduce the goal of PE multiple to two times. Overall, we cut the appropriate values ​​of shares by two to 10 percent. (Disclaimer: Business Standard Private Limited has a majority stake in the units controlled by Cuttack family.) First Published – April 8, 2025 | 10:41 PM Ist Facebook Twitter Linked In Whatsapp Gmail related posts

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