Despite persistent concerns about US policies and no major improvement in demand, India’s information technology companies are likely to report better sequential earnings in the September quarter due to higher revenue conversion and lower project delays and deferrals, according to broking firms. Most IT companies are expected to post sequential growth in their bottom line and top line, with mid-cap IT players likely to outperform their larger peers at least for the 20th quarter in a row.

“The demand environment has not deteriorated, though weak discretionary spending, slower decision making, cautious approach by clients amid macro uncertainty and AI-led tech disruption continue to weigh on growth,” Emkay Global Financial Services said in its earnings preview report.