Earnings of Top Indian IT companies and How AI is Changing the Trajectory

Some of the largest Indian IT firms reported largely resilient but muted top-line growth in the quarter of September, FY26, with profitability and guidance showing the not-so-uniform ways clients are buying technology today.

Tata Consultancy Services (TCS), HCLTech, Infosys, Wipro and Tech Mahindra all announced a positive but modest revenue growth in Q2 FY26, while all the management repeatedly referenced artificial intelligence (AI), especially Generative AI as both a growth accelerator and a structural disruptor. These results show that AI has stepped beyond pilot projects into billable client work, but patterns of monetization, pricing models and margin dynamics are in flux.

TCS: AI-led Positioning but Incremental Revenue Growth

Tata Consultancy Services announced revenue of approximately ₹65,799 crore for the September quarter with a net profit of approximately ₹12,075 crore. This marks an overall small year-over-year growth while delivering sequential margin expansion.

TCS’s published Quarter 2 fact sheet and earnings show sequential revenue growth and a reported operating margin above 25%, and the company framed its near-term go-to-market as being explicitly “AI-led,” aiming to turn internal automation and product investments into client offerings.

The company remains the bellwether of the sector: its scale makes the company unusually sensitive to even small shifts in client sourcing models, and its results demonstrate both the upside of platform and AI engagements and the short-term friction of restructuring and reinvestment.

Infosys: Strong Net Profit Growth and an AI Uplift Layer in Deals

Infosys’s September quarter was higher on growth and beat expectations in several metrics. Consolidated revenue for this quarter was approximately ₹44,490 crore and net profit sore high, driven by a steadily increasing demand across financial services, manufacturing and other sectors.

The management claimed that AI is an integral part of the pipeline, with several large contracts including an “AI uplift” component and the company modestly raising the lower end of its annual revenue guidance after the quarter.

Infosys’s results paint a common pattern across the IT industry: generative AI is adding new services and assisting in winning deals, but most firms claim that the bulk of AI-driven revenue still stems from modernization, cloud integration and data work instead of pure-play LLM licensing.

HCLTech: AI Revenue Quantified

HCLTech showed one of the boldest examples of AI moving from the experiment stage to revenue generation. The company announced double-digit year-on-year revenue growth in the September quarter and the management also disclosed that the company earned approximately $100 million of revenue from AI offerings during this period.

Simultaneously, reported net profit was flat due to restructuring and other one-time items. HCL’s disclosure is crucial because it is one of the first large, public Indian company quantifying an “AI revenue” bucket. This is a signal that meaningful, recurring business is already being recognized and booked as AI services rather than being buried inside generic outsourcing line items.

Wipro: Large Deal Wins, Uneven Monetization

Wipro’s Quarter 2 numbers were steady but unspectacular. Consolidated revenue was approximately ₹22,697 crore for the period, while consolidated net profit was around ₹3,246 crore; a small year-on-year rise that nonetheless missed some street estimates.

The company's disclosures emphasize a different competitive dynamic. The company reported strong large-deal wins, marking that customers still write big contracts for transformation programs and often include an AI or automation component.

Currently Wipro’s near-term struggle, like that of the other corporations, is to convert large pipeline opportunities into richer, higher-margin AI platform engagements rather than only incremental service extensions.

Tech Mahindra: AI-led telecom modernization lifts growth

Tech Mahindra’s September quarter results also showed recovery in demand. The company's consolidated revenue was around ₹13,995 crore, with material sequential and year-on-year gains and a stronger EBIT and PAT trajectory.

Tech Mahindra’s results reflect how industry-specific areas are being rebuilt by AI. Customers in connectivity, software-defined networks and telecom operations are buying AI-enabled automation and analytics that replace repetitive human tasks while creating new productized services.

AI is Deflationary for Traditional Services Even as It Expands New Revenue Pools

Summing up the reports above, the September quarter shows two simultaneous forces at play. On one hand, AI and automation are deflationary for traditional revenue pools. Many regular app development, testing and other repetitive tasks can be performed faster with AI assistance, indicating that clients will either demand lower prices for the same output or re-assess contracts to capture savings. This dynamic shows up in slower hiring, tighter utilization and more emphasis on outcome-based pricing in the commentary of several leaders.

On the other hand, AI is expanding the overall addressable market in adjacent ways: data modernization, AI-native product development, cloud transformation, GenAI application engineering and AI operations (AIOps) are all growth areas that command higher margins and recurring revenue when packaged as platforms, IP, or managed services. All the companies mentioned above explicitly referenced both effects in their earnings reports.

Conclusion: Revenue Models are Shifting, and AI is Rewriting Margin Logic

For investors and corporate leaders the near-term implications are direct. Margins will likely face two countervailing pressures: margin improvement through automation and higher-value AI engagements, and margin compression from price renegotiation as commoditized services get cheaper to deliver.

In practice, that means companies with differentiated IP, platforms, and productized AI offerings will capture more of the upside, while firms reliant on FTE arbitrage will have to retool their go-to-market and pricing models.

In conclusion, the latest quarterly earnings from India’s top IT firms show a marketplace in transition. AI is already a meaningful revenue contributor for some players and a central element of deal pipelines for most. At the same time, the economics of services are being reshaped; the old linear relationship between headcount and revenue is weakening, even as the total prize grows if companies can productize AI and move to outcome-based pricing.