India's services sector is expected to maintain a positive demand outlook in Q3FY27, although business optimism has moderated compared with the previous quarter, with firms anticipating some easing in cost pressures but remaining less optimistic about selling prices and profit margins, according to the Reserve Bank of India's (RBI) latest Services and Infrastructure Outlook Survey. The apex bank noted, during Q2FY27, services sector companies reported an improvement in overall business conditions, turnover and full-time employment. However, "Firms reported increased cost pressures with some increase in selling prices, although profit margin sentiment remained subdued," it said.