AI's Impact on Indian IT: Worse Than Expected, Warns Sameeksha Capital's Bhavin Shah

• Bhavin Shah, Founder, CIO, and CEO of Sameeksha Capital, warns that AI-led revenue deflation for Indian IT stocks will be far worse than the 2-3% currently anticipated.
• Shah highlights that the rapid increase in productivity gains across the industry will significantly shrink the revenue pool for IT services companies.
• He explains that AI's impact extends beyond code development to program design, documentation, testing, and quality assurance, surprising experts with its magnitude.
• Shah cautions that even if margins are protected, revenue erosion will negatively impact Earnings Per Share (EPS) and poses a near-term valuation risk for investors.
• Sameeksha Capital is re-evaluating its IT holdings with a direction towards selling, having already reduced global technology exposure due to the aggressive global AI race.