Indian IT sector shows sequential recovery in Q2FY26; tier-2 techs lead growth

The Indian IT sector witnessed a return to positive sequential growth in Q2FY26, driven by Tier-1 techs reversing declines seen over the past two quarters, while Tier-2 techs continued to outperform both in growth and margins, according to sector commentary, according to a report by Axis Capital.

The sectoral update report added that Tier-1 companies, including Infosys and Wipro, reported growth broadly in line with expectations, with Tech Mahindra posting a slight upside surprise.

The report added that tier-2 players such as Coforge and Persistent…