• Middle East impact: Geopolitical unrest and stressed public sector spending have weakened performance across Q1 and Q2, dampening growth expectations and shifting the regional strategy toward cost savings and margin protection.
• FY27 growth guidance: Management reaffirmed its guidance that FY27 performance will surpass FY26, supported by strong order backlog execution, AI-led deal traction, and broad-based sectoral demand across healthcare, financial services, and retail.
• Regional business momentum: North America has posted healthy net new order book growth for four consecutive quarters and is poised for an H2 turnaround, while the UK and European business remains stable despite some bid decision delays following UK political leadership changes.
• Pricing and margins: Sold gross margins have declined by 10% to 15% across several deals due to client demands for discounts and productivity benefits, though internal efficiency gains in fixed-bid contracts are helping cushion the impact.