IT Industry

India's top six IT companies - TCS, Infosys, HCLTech, Wipro, Tech Mahindra, and LTIMindtree - took a combined hit of about Rs 5,400 crore on account of the implementation of new labour codes, the one-time charge eroding their Q3 FY26 earnings performance substantially. The new regulations, which consolidate 29 existing labour laws, have forced a structural shift in how companies calculate employee benefits. The country's largest IT services exporter, Tata Consultancy Services (TCS), bore the heaviest burden, reporting a "statutory impact" of Rs 2,128 crore. The provisioning led to a 13.9 per cent drop in net profit to Rs 10,657 crore. TCS CFO Samir Seksaria noted that the hit included Rs 1,800 crore for gratuity and Rs 300 crore for leave encashment, warning that the codes will continue to shave 0.100.15 per cent off margins moving forward. Infosys too reported a one-time exceptional charge of Rs 1,289 crore. The Bengaluru-based firm saw its net profit decline 2.2 per cent to Rs 6,

Global product engineering and digital services firm Tata Technologies Ltd on Friday reported a 96 per cent decline in consolidated profit after tax at Rs 6.64 crore in the third quarter ended December 31, 2025, primarily on account of the statutory impact of new labour codes. The company had posted a consolidated profit after tax of Rs 168.64 crore in the corresponding period of the previous fiscal, Tata Technologies said in a regulatory filing. Consolidated revenue from operations in the quarter under review stood at Rs 1,365.73 crore, as against Rs 1,317.38 crore in the year-ago period. Total expenses in the third quarter were higher at Rs 1,217.99 crore, as compared to Rs 1,119.31 crore in the same period last fiscal, it said. The company said it has presented the incremental impact of "statutory impact of new Labour Codes" under "exceptional items" comprising gratuity of Rs 114 crore and compensated absences of Rs 25.87 crore, primarily arising due to a change in wage definiti

The company's revenue from operations grew 8.34 per cent year-on-year (Y-o-Y) to ₹14,393 crore from ₹13,285 crore in Q3FY25

IT companies are looking to diversify and look beyond traditional revenue segments, as growth has remained damp over the last few years

Revenue for the company grew 13.32% in reported terms to ₹33,872 crore in Q3 FY26. Sequentially, the firm's revenue was up 6.04%

From chips to sovereign AI, Ashwini Vaishnaw lays out how India plans to build a full-stack tech ecosystem and become a major semiconductor and AI power by 2032

Some of these companies, such as Infosys and Wipro, do not even operate there. While Infosys does not have a presence, Wipro's Venezuelan unit was liquidated many years ago

AI and generative AI (GenAI) are expected to play crucial roles in deal renewals going forward, as clients look to build more efficiencies into their operations and reduce costs

India's USD 280-billion IT industry heads into 2026, balancing visa-related headwinds and global trade uncertainty against its biggest-ever push into artificial intelligence and the rapid expansion of global capability centres (GCCs). Heightened scrutiny of the US H-1B visa programme - including a proposed USD 100,000 fee for new visas and concerns over a potential 25 per cent outsourcing tax - has complicated cross-border delivery for Indian firms, even as companies accelerate efforts to reduce reliance on onsite staffing. The US remains the sector's largest export market. The visa proposals triggered market volatility in late 2025, disrupting travel plans and denting IT stocks, before partial clarifications offered limited relief. Fresh concerns have since emerged around social media screening and unpredictable processing delays. Analysts warn that sharply higher visa costs could add hundreds of millions of dollars to expenses for large IT firms, reinforcing the shift toward ...

Indian IT majors vie for mandate as American bank plans insourcing rampup

India's IT sector is showing signs of stabilising demand, improving deal momentum and rising AI-led productivity, with analysts turning modestly positive on earnings as firms regain confidence

The state's IT and biotechnology minister outlines strategies to attract investment, foster DeepTech and AI, and develop specialised talent amid global trade and visa challenges

President Trump's acknowledgement of the importance of H1-B talent has boosted sentiment in India's tech sector

The US-based IT services firm will invest $250 million in AI over five years and launch a dedicated AI and Innovation Division, with more than half its 3,800 global employees based in India

KPIT Technologies' quarterly profit fell 17% due to joint venture losses, but revenue rose 8% on strong growth in connected and autonomous vehicle segments and improving demand in Europe

Real-world problem-solving events are replacing conventional placements, giving IT firms a stage to recruit engineers for their practical skills

Mphasis posts double-digit growth in Q2 FY26 with net profit up 10.8 per cent to Rs 469 crore and $528 million in deal wins; BFS pipeline rises 45 per cent on AI-driven demand

The multi-year contract strengthens LTIMindtree's large-deal momentum as IT firms focus on cost optimisation and efficiency-led growth in a cautious spending climate

The inextricable link between revenue and employee strength is a metric that has been used for the last three decades as a barometer of the health of the $284 billion industry

Rating agency ICRA has estimated that the number of Global Capability Centers (GCCs) in India will increase to more than 2,500 in the next five years, creating huge demand for office space. In 2024-25 fiscal, GCCs leased a record 24 million sq ft of Grade A office space across the top six cities, with their share in total leasing rebounding to 37 per cent from a low of 27 per cent in FY23, the rating agency said in a statement. ICRA projected that GCCs would take on lease 50-55 million square feet of Grade A office space during FY26 and FY27, potentially contributing 38-40 per cent to the total office space demand in the top six markets- Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai Metropolitan Region (MMR) and Pune. ICRA expects "the number of GCCs to rise from about 1,700 currently to more than 2,500 by 2030, generating over USD 100 billion in revenue and scaling workforce capacity by 1.5-2 times." Anupama Reddy, Vice President and Co-Group Head, Corporate Ratings, ICRA, said