18
India’s leading information technology companies are heading into the September-quarter earnings season amid cautious client spending, AI-
driven pricing pressure and a challenging global economic environment.
Tata Consultancy Services (TCS), Infosys, HCLTech and Wipro are among the major IT companies expected to report subdued results for the July- September quarter, with analysts forecasting limited sequential revenue growth as businesses remain cautious about technology spending.
The country’s six largest IT firms are expected to post their weakest sequential performance in about three years, according to Jefferies.
Revenue growth is projected at 0.7% to 3.5% quarter on quarter, while analysts expect year-on-year growth of about 10% in rupee terms.
A key challenge for the sector is the growing impact of artificial intelligence on traditional IT services. The increasing use of AI and automation is putting pressure on the industry’s billable-hours model and encouraging companies to rethink pricing as productivity improves.
Client demand is also expected to remain cautious. Higher oil prices and interest rates are adding to broader economic pressures, while analysts cited by Reuters said demand conditions have changed little from the previous quarter.
At the same time, AI is creating new opportunities for Indian IT companies.
Firms are investing in generative AI, cloud services, automation and AI-led transformation projects as they seek to develop new sources of revenue.
However, analysts expect organic growth to remain weak, with acquisitions and deal ramp-ups providing support for some companies.
Investors are expected to focus on revenue growth, margins, client spending and full-year guidance when companies begin reporting. Management commentary on AI adoption, pricing and the pace at which AI services translate into revenue is also likely to receive close attention.
TCS is scheduled to begin the major Indian IT earnings season on October 8, followed by Infosys, HCLTech and Wipro later in the month. The results will provide a clearer picture of how global technology spending and the rapid adoption of AI are affecting India’s technology-services industry.
Infosys is also expected to face scrutiny over its annual revenue outlook. Analysts cited by Reuters expect the company to reduce the upper end of its existing 1.5%-3% revenue-growth forecast. Jefferies expects the range could be cut to 0.5%-2%, while Kotak expects the upper end to be reduced to 2.5%.
The market has already reflected some of these concerns. The Nifty IT index has fallen about 27% so far in 2026, compared with a 13.4% decline in the benchmark Nifty 50, according to Reuters.
Tata Consultancy Services (TCS), Infosys, HCLTech and Wipro are among the major IT companies expected to report subdued results for the July- September quarter, with analysts forecasting limited sequential revenue growth as businesses remain cautious about technology spending.
The country’s six largest IT firms are expected to post their weakest sequential performance in about three years, according to Jefferies.
Revenue growth is projected at 0.7% to 3.5% quarter on quarter, while analysts expect year-on-year growth of about 10% in rupee terms.
A key challenge for the sector is the growing impact of artificial intelligence on traditional IT services. The increasing use of AI and automation is putting pressure on the industry’s billable-hours model and encouraging companies to rethink pricing as productivity improves.
Client demand is also expected to remain cautious. Higher oil prices and interest rates are adding to broader economic pressures, while analysts cited by Reuters said demand conditions have changed little from the previous quarter.
At the same time, AI is creating new opportunities for Indian IT companies.
Firms are investing in generative AI, cloud services, automation and AI-led transformation projects as they seek to develop new sources of revenue.
However, analysts expect organic growth to remain weak, with acquisitions and deal ramp-ups providing support for some companies.
Investors are expected to focus on revenue growth, margins, client spending and full-year guidance when companies begin reporting. Management commentary on AI adoption, pricing and the pace at which AI services translate into revenue is also likely to receive close attention.
TCS is scheduled to begin the major Indian IT earnings season on October 8, followed by Infosys, HCLTech and Wipro later in the month. The results will provide a clearer picture of how global technology spending and the rapid adoption of AI are affecting India’s technology-services industry.
Infosys is also expected to face scrutiny over its annual revenue outlook. Analysts cited by Reuters expect the company to reduce the upper end of its existing 1.5%-3% revenue-growth forecast. Jefferies expects the range could be cut to 0.5%-2%, while Kotak expects the upper end to be reduced to 2.5%.
The market has already reflected some of these concerns. The Nifty IT index has fallen about 27% so far in 2026, compared with a 13.4% decline in the benchmark Nifty 50, according to Reuters.
