Is this a good time to switch for an SDE with 2.5 YoE

If u are 2.5 yoe with 26 ctc, just stay where you are. Because more layoffs will be seen in coming days since google, meta, amazon has done layoffs now, a chain reaction will follow. (Sab behti ganga me hath dhonge). Also 26 ctc is not bad. Also don't compare your ctc with the compensation which people got after covid period. That was just exceptional period after which many companies have reduced budgets for same positions by a lot.

Don't think about switching before Q2 2025. Things will go south from here as more layoff will happen until there is a reduction in federal interest rate which will improve liquidity and open door for new funding for startups and improve market sentiment for Bigtech.

you can easily get 40lpa but you need to be immediate joiner. you can think about resigning this month and don’t loose the 14lpa diff

Depends on your risk appetite, regardless of whether you stay in your current company or switch to another, there is a chance you might get laid off in the coming months. But, in my experience, companies tend to layoff new joiners more often than old timers.

That being said, my suggestion would be to switch now and keep some savings with you just in case you are indeed affected by layoffs. Ofcourse, If you are looking for stability more than money, staying in your current company would be more beneficial (for now).

26lpa in 2.5 yoe is not bad at all, although definitely not the best either. You could probably get somewhere between 35-40 CTC if you switch now.

I think it will be a good choice
Many companies are hiring with 2+ experience. You should consider taking the opportunity.