IT margins may remain edgy on seasonal lows, deal ramp-downs

Margins for Indian IT companies in the new fiscal year are likely to come under pressure due to wage hikes, investment costs and heightened uncertainties about the demand environment amid the tariff war, according to analysts.

The IT sector is expected to post weak results as it begins announcing fourth-quarter earnings starting this week, even as the global economic uncertainties that have been weighing on the industry performance for some time now are expected to worsen amid the reciprocal tariffs announced by the US.

“We expect EBIT (earnings…