Archive · 17 Nov 2025
Indian IT Firms Lagging in AI Race, Impacted by GST Revisions
A top executive, Sudeep Bandyopadhyay, thinks Indian technology companies are behind in using Artificial Intelligence (AI).
He believes they don't have their own AI tools, which puts them at a disadvantage compared to companies in other countries, especially the US.
In the US, companies that are good at AI are doing very well and are valued highly.
Mr. Bandyopadhyay feels that Indian IT firms might see lower profits because of this.
He also mentioned that while it's still too early to tell the full effect of recent changes like the GST tax revision, the second quarter's financial results were generally not great.
However, he noted that oil and gas companies did well because oil prices were low.
Indian IT firms have largely missed the opportunity in AI development and adoption, according to Sudeep Bandyopadhyay.
The lack of proprietary AI tools places Indian companies at a disadvantage against global peers, potentially impacting margins.
AI-related stocks command significant valuations in the US market, highlighting its growing importance in IT projects.
Q2 earnings were subdued due to factors like heavy monsoons and global/domestic challenges; impact of GST revision is still unclear.
The oil and gas sector reported good earnings, benefiting from low crude oil prices and improved Gross Refining Margins (GRM).
- Who
- Sudeep Bandyopadhyay, Group Chairman of Indy Trade Capital
- What
- Discussed Q2 earnings, the impact of AI on the Indian IT sector, and performance of other sectors like oil and gas.
- When
- Following the Q2 earnings session; outlook on current trends and future prospects.
- Where
- India, with specific commentary on the Indian IT sector, and also mentioning US and South American business.
- Why
- To decode sector-wise earnings and gauge the impact of various economic and technological factors.
Sudeep Bandyopadhyay's View
General Market/Economic Factors
AI Adoption by Indian IT
Sudeep Bandyopadhyay's View
Indian IT companies have largely missed the opportunity in AI, lacking proprietary tools and facing disadvantages against global peers.
General Market/Economic Factors
AI is a major influence in the technology space, commanding huge valuations for AI-related stocks in the US, making AI deployment a critical component of future IT projects.
US and South American Business for Indian Firms
Sudeep Bandyopadhyay's View
Indian IT firms are struggling with valuations and business in the US, with potential margin pressure.
General Market/Economic Factors
There's a surprising pickup in US and South American business for many Indian companies, suggesting some international markets are improving.
Q2 Earnings Impact
Sudeep Bandyopadhyay's View
Q2 earnings were subdued due to heavy monsoons and global/domestic challenges; it's premature to ascertain the impact of reforms like GST revisions.
General Market/Economic Factors
Oil and gas sector results were good, benefiting from low crude oil prices and improved Gross Refining Margins (GRM).
- Expert Opinion
- Sudeep Bandyopadhyay, Group Chairman of Indy Trade Capital
- Key Concern for Indian IT
- Lack of proprietary AI tools and lagging adoption puts them at a disadvantage.
- Impact of AI
- AI deployment is a crucial component of future IT projects; AI-related stocks command high valuations in the US.
- Q2 Earnings Context
- Subdued due to monsoons and global/domestic challenges; premature to assess GST revision impact.
- Oil & Gas Sector Performance
- Positive results driven by low crude oil prices and improved GRM.
- International Business Pickup
- Surprising pickup noted in US and South American business for some Indian firms.
Sources
If earnings turnaround, India’s global underperformance may be reversed and FIIs may come back
BofA says the worst of Nifty earnings cuts is over, financials still the cheapest sector
Expert view: Positive on industrials, capital goods, auto, cement, financials, says ICICI Pru AMC's co-CIO
