India’s five major IT companies reported mixed performances in the September quarter of FY27, with differences in revenue growth, profitability, operating margins, artificial intelligence (AI) revenue, deal wins and employee additions.
Tech Mahindra and HCLTech reported sequential revenue growth of 3 per cent each in rupee terms. In constant currency terms, Tech Mahindra’s revenue increased 2.4 per cent, compared with 2.3 per cent for HCLTech. TCS reported the highest operating margin at 24 per cent, while HCLTech recorded an 11 per cent sequential increase in net profit.
Infosys reported a 29 per cent sequential increase in AI revenue but lowered its FY27 revenue growth guidance to 1-2 per cent. Meanwhile, Wipro’s IT services revenue remained flat sequentially in constant currency terms.
Revenue growth: Tech Mahindra and HCLTech lead
Tech Mahindra and HCLTech reported sequential revenue growth of 3 per cent each in rupee terms in Q2 FY27. Tech Mahindra’s revenue increased 2.4 per cent in constant currency terms, while HCLTech recorded growth of 2.3 per cent.
TCS reported a 1.3 per cent sequential increase in revenue in rupee terms, while constant currency growth stood at 0.5 per cent. Revenue in US dollar terms rose 0.2 per cent to USD 7.642 billion.
Infosys reported a 2.1 per cent sequential increase in revenue in rupee terms to Rs 49,244 crore. Revenue in US dollar terms increased 1.2 per cent sequentially to USD 5.145 billion, while constant currency growth also stood at 1.2 per cent.
Wipro’s gross revenue rose 1.1 per cent sequentially to Rs 24,752.7 crore. However, revenue from its IT services segment declined 0.1 per cent in US dollar terms, while remaining flat in constant currency terms.
Operating profit and margins: TCS retains lead
TCS reported an operating margin of 24 per cent, the highest among the five companies. Its operating margin increased 1.4 per cent sequentially, according to the company’s reported figures for the quarter.
Infosys reported an operating margin of 21 per cent, compared with 21.1 per cent in the June quarter. Its operating profit increased 1.6 per cent sequentially.
HCLTech’s earnings before interest and tax (EBIT) margin expanded by 131 basis points sequentially to 18.2 per cent. Wipro reported a 50-basis-point improvement in its IT services operating margin to 16.5 per cent.
Tech Mahindra’s EBIT margin increased by around 40 basis points sequentially to 14.8 per cent, while its EBIT rose 5.4 per cent.
HCLTech recorded the largest sequential improvement in operating margin among the five companies, while TCS continued to report the highest margin.
Net profit: HCLTech records highest sequential growth
HCLTech reported an 11 per cent sequential increase in net income to Rs 5,132 crore in Q2 FY27.
Tech Mahindra’s profit after tax rose to Rs 1,586 crore, while Wipro’s net income declined 4.7 per cent sequentially to Rs 3,200 crore.
Infosys reported net profit of Rs 7,823 crore, compared with Rs 7,769 crore in the preceding quarter, an increase of around 0.7 per cent.
TCS reported net profit of Rs 13,884 crore in the September quarter. Its profit was higher in absolute terms than that of the other four companies.
The comparison shows differences in sequential profit growth, with HCLTech recording the highest increase among the five companies and Wipro reporting a decline.
AI revenue and deal wins: Infosys reports 29% growth
AI revenue and contract wins were other measures of performance during the September quarter.
Infosys reported AI revenue of USD 540 million, up 29 per cent sequentially. HCLTech reported advanced AI revenue of USD 219 million, representing growth of 28.4 per cent in constant currency terms.
TCS reported annualised AI revenue of USD 3.1 billion, an increase of around 19-20 per cent sequentially.
The figures use different reporting bases. TCS’s AI revenue is annualised, while the Infosys and HCLTech figures represent revenue for the quarter.
TCS reported total contract value (TCV) of USD 9.6 billion in deals won during the quarter, followed by Infosys at USD 5.2 billion. HCLTech reported new deal wins worth USD 3.258 billion.
Wipro reported total bookings of USD 2.595 billion, while Tech Mahindra’s new deal wins stood at USD 1.023 billion.
FY27 guidance and headcount: HCLTech leads hiring
Infosys reduced its FY27 revenue growth guidance to 1-2 per cent from the earlier range of 1.5-3 per cent. It retained its operating margin guidance of 20-22 per cent.
HCLTech retained its FY27 revenue growth guidance of 2.5-4 per cent in constant currency terms and its EBIT margin guidance of 17.5-18.5 per cent. Tech Mahindra retained its FY27 operating margin target of 15 per cent.
TCS maintained its long-term operating margin aspiration of 26-28 per cent. Wipro guided for IT services revenue growth ranging from a 1.5 per cent decline to a 0.5 per cent increase sequentially in constant currency terms for the December quarter.
The five companies reported a combined net addition of 13,918 employees in Q2 FY27, compared with 5,480 in the preceding quarter.
HCLTech led the additions with 6,450 employees, followed by Tech Mahindra with 5,446, Infosys with 4,480 and TCS with 4,258. Wipro reduced its workforce by 6,716 employees.
TCS’s headcount stood at 5,98,056 at the end of September, compared with 5,93,798 in June. Infosys had 3,32,542 employees, up from 3,28,062, while HCLTech’s workforce increased to 2,30,339 from 2,23,889.
Tech Mahindra’s headcount rose to 1,52,206, while Wipro’s workforce declined to 2,36,328 from 2,43,044.