New Delhi, Jan. 14 -- Infosys Ltd reported better-than-expected results for the December quarter, adding to early signs of a demand recovery in India's $283-billion IT services industry even as margin pressures persist.

After posting modest sequential revenue growth, the Bengaluru-based company raised its full-year guidance, echoing optimism on future demand expressed earlier by larger peer Tata Consultancy Services Ltd and rival HCL Technologies Ltd.

Speaking during the company's post-earnings press conference on Wednesday, Infosys's chief executive Salil Parekh pointed to a robust large-deal pipeline and improving demand from financial services and energy clients, supported by AI-led work, that are underpinning the company's confidenc...