Healthtech Emerges as Bright Spot in India’s $283B IT Sector

India’s healthtech IT providers—

, , and —have delivered steady growth amid a muted demand environment. Their ability to adapt to evolving US healthcare regulations and leverage software-led workflows has helped them outperform traditional IT and auto ER&D peers in the first half of FY26. - Resilient Growth Despite Sectoral Headwinds Sagility, Indegene, and IKS posted Q2FY26 revenues of $189.4M, $92.2M, and $90.2M respectively, with QoQ growth of 5%, 3.7%, and 4%. Their sequential growth rates outpaced the broader IT sector, which saw average growth of 1.6–2.9% in the same period. - Effective Adaptation to US Regulatory Challenges These firms have navigated tighter US drug spending and compliance pressures by shifting to platform-based solutions for patient and administrative workflows. Their agility in responding to OBBA (One Big Beautiful Bill Act) mandates has positioned them as trusted partners for US healthcare providers. - Stronger Performance Than IT Majors and ER&D Firms Healthtech firms outperformed India’s top five IT services companies and auto-focused ER&D firms, which posted annual sequential growth of just 0.26–1.6% in H1FY26. Healthtech firms saw a 16% average revenue rise versus 12% for broader IT. - US Healthcare Spend Tailwinds Rising healthcare demand in the US, driven by an aging population and chronic care needs, is expected to boost healthtech IT demand. This structural tailwind supports sustained growth for Indian firms with domain depth and compliance capabilities. - Optimistic Outlook and Strategic Positioning With proven adaptability, strong client retention, and expanding platform capabilities, healthtech IT firms are well-positioned for continued growth. Their performance underscores the value of vertical specialization in navigating global regulatory complexity.