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Indian IT sector shows sequential recovery in Q2FY26, driven by Tier-1 techs reversing declines and Tier-2 techs continuing to outperform. Tier-1 companies such as Infosys and Wipro reported growth in line with expectations, while Tier-2 players like Coforge and Persistent Systems led sequential growth. Margins across the sector improved, aided by currency tailwinds and delayed wage hikes. Headcount addition picked up modestly in Q2, signaling early signs of demand stability. Freshers hiring is expected to rise further in FY26.

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