IT Industry

India's top five IT majors -- TCS, Infosys, HCLTech, Wipro, and Tech Mahindra -- closed FY26 at a critical inflection point, navigating a structural reset driven by macroeconomic headwinds, West Asian geopolitical risks, and the dual-edged sword of Artificial Intelligence (AI). Earnings analyses reveal a sector transitioning rapidly away from traditional effort-based delivery. AI-driven productivity is causing revenue deflation in legacy services. However, this near-term compression is being offset by a multi-billion-dollar surge in new AI-native engagements, prompting a decisive shift in client priorities from sheer scale to modular, outcome-driven contracts. This paradigm shift is starkly reflected in mixed FY27 outlooks and evolving talent metrics. While TCS and Infosys signalled that the worst macro headwinds are receding, peers like HCLTech and Wipro flagged continued volatility and soft discretionary spending. "AI may cause about 2-3 per cent annual deflation in traditional IT

IT firm reports strong quarterly growth driven by AI-led demand, with revenue up 25 per cent and continued momentum in deal bookings and client engagements

Nasscom says the TCS harassment case is isolated and not reflective of the IT industry, reiterating strict safety norms, governance frameworks, and zero tolerance for misconduct

Krithivasan discusses growth prospects for FY27, the perceived threat from artificial intelligence tools, and hiring trends

IT services firms are pushing managers to deploy AI tools in client work to boost productivity, improve efficiency and drive revenue growth amid a prolonged demand slowdown

Karnataka High Court seeks Centre's response on X Corp challenge to the Sahyog portal, while the Supreme Court agrees to examine the Fact Check Unit provisions under IT Rules

Happiest Minds raises FY27 revenue growth guidance to 12.5 per cent from 10 per cent, citing strong momentum from its AI-First strategy and growing demand across key sectors

Nasscom has urged tech firms to strengthen cybersecurity frameworks as West Asia conflict heightens risks, advising measures ranging from credential resets to DDoS readiness and supply-chain audits

Industry leaders say Indian IT firms must evolve from implementation partners to orchestration partners in the AI era, even as AI-driven revenue is projected at $10-12 billion in FY26

C Vijayakumar says the $283 billion IT industry faces a difficult AI-led shift, but frontier model firms and services players will drive long-term value creation

Indian tech industry revenues for FY26 are set to grow 6.1 per cent to USD 315 billion, Nasscom said on Tuesday. The industry lobby grouping revised up its FY25 revenues number to USD 297 billion from USD 282.6 billion earlier. The revenue growth in FY26 increased marginally to 6.1 per cent in FY26 from 5.9 per cent in FY25 despite the headwinds, it said. Its President Rajesh Nambiar said the industry continues to be a net job generator, and the overall number of employees is set to increase 2.3 per cent to 5.95 million in FY26 from 5.82 million in the year-ago period. Nambiar said the overall number of employees added by the tech industry in FY26 is 1.35 lakh, which is marginally better than the 1.33 lakh added in FY25. Amid the intense focus on AI, Nasscom said USD 10-12 billion of overall revenues for the sector come from the new-age tech solutions.

With growth for the IT services industry in single digits and impact of AI tools like Co-work by Anthropic, many are raising existential questions for the industry

Automating tasks won't overhaul data estates, security frameworks: Experts

Mentions of AI disruption on management calls almost doubled compared to the previous quarter, a Bloomberg News analysis of transcripts shows

Ahead of the India-AI Impact Summit 2026, Ashwini Vaishnaw said India's IT industry is moving from software to AI, re-skilling employees and training students nationwide

The company's billings in Q3 for the Naukri or recruitment segment were up 11 per cent year-on-year but were lower than Street expectations

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