New Delhi, April 8 -- Investors in Indian IT stocks have stepped into FY26 on an anxious note. The latest blow: newly announced reciprocal tariffs by the US, which threaten to further derail the sector's already-stalled revenue growth recovery. Companies continue to battle the same headwinds-cautious clients, muted discretionary tech spending, and prolonged deal cycles-all of which are slowing revenue conversion and triggering another wave of earnings downgrades.

"We once again cut revenue and EPS estimates (after cuts in March 2025) for our coverage universe, baking in the reciprocal tariffs imposed by the US against many countries," said a Kotak Institutional Equities report on 4 April.

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