Archive · 27 Jul 2026
AI Revenue Grows but IT Top Line Lags
Big Indian IT companies are making more money from AI, but their overall revenue isn't growing much.
This is because AI is replacing old types of work instead of adding new work.
Companies like Infosys, Wipro, and HCLTech are signing big deals, but they're not making as much money as before.
Experts say the industry needs to change how it does business to grow in the future.
AI revenue is growing for major Indian IT firms but overall revenue growth remains muted.
Infosys reported AI as 8.2% of its quarterly revenue.
TCS's annualized AI services revenue crossed $2.6 billion.
Wipro projected a largely flat September quarter despite a 12.9% sequential rise in large deal bookings.
Analysts suggest the industry needs to move towards AI-native platforms for sustainable growth.
- Who
- Major Indian IT firms like Infosys, Wipro, HCLTech, TCS, and Tech Mahindra
- What
- AI revenue growth is not translating into overall revenue growth due to substitution of traditional outsourcing
- When
- April-June quarter earnings
- Where
- India
- Why
- Enterprises are using AI-driven productivity gains to renegotiate contracts and demand lower prices
Optimistic View
Cautious View
Revenue Growth
Optimistic View
AI revenue is growing significantly, indicating a positive shift in the industry.
Cautious View
Overall revenue growth remains muted, highlighting the challenges in translating AI gains into broader growth.
Deal Wins
Optimistic View
Large deal wins are increasing, showing strong demand for AI services.
Cautious View
Many deals are traditional outsourcing agreements incorporating AI, not AI-native models, which limits premium pricing.
Future Growth
Optimistic View
Investment in AI platforms and talent will drive future growth and premium pricing.
Cautious View
The industry needs to move beyond labor-based models to AI-native platforms to achieve sustainable growth.
- Infosys AI Revenue
- 8.2% of quarterly revenue
- TCS Annualized AI Revenue
- $2.6 billion
- Wipro Q2 Guidance
- 1.5% sequential decline to 0.5% growth
- HCLTech Deal Bookings
- $2.4 billion
- Infosys Large Deals
- $3.6 billion