India's top IT companies have kicked off the June quarter earnings season with a mixed set of numbers, highlighting resilient deal wins and accelerating AI adoption despite modest revenue growth and continued macroeconomic uncertainty.
While TCS showcased robust AI momentum, HCLTech delivered its highest-ever quarterly deal wins, and LTIMindtree stood out with the highest AI revenue contribution among peers.
Deal Wins
HCLTech's new deal wins remained a key highlight, with total contract value (TCV) coming in at $2.41 billion. CEO C Vijayakumar described the quarter as the company's strongest ever from a bookings perspective.
"Q1 marks the highest-ever deal win. The pipeline continues to be robust," he said.
On the other hand, TCS' order book declined to $9.5 billion from $12 billion in the previous quarter, though it included a marquee AI-led transformation deal with SKF.
ALSO READ: HCLTech Q1 Attrition Rate Rises To 12.7%, Headcount Falls By Over 3,000
Constant currency revenue growth for LTM came in at 0.3%, the slowest in four quarters, while deal inflows remained broadly stable at $1.68 billion.
Headcount Decline
On the workforce front, HCLTech's headcount declined by 3,292 employees during the quarter to around 2.24 lakh, while attrition edged up to 12.7%. The company, however, added 1,056 freshers during the period.
TCS added over 9,000 employees during the quarter. There was a marginal drop in the attrition rate compared to 13.7% in the previous quarter. Notably, the co's headcount rose by over 9,000 employees to 5,93,798 from 5,84,519 in the March quarter of last fiscal.
Operationally, LTM's headcount remained largely stable at 87,886 employees, with attrition unchanged at 13.3%.
AI Momentum Strong
Artificial intelligence remained the defining theme across all three companies.
AI continued to emerge as a major growth driver for TCS. The company said its AI business has now reached an annualised revenue run rate of $2.6 billion.
CEO K Krithivasan said customer investments in AI, cybersecurity, sovereign cloud and platform modernisation continue to accelerate.
"As customers accelerate investments in AI, modernization, cybersecurity, sovereign cloud and platform simplification, our strong deal conversion, improving client mining and expanding ecosystem partnerships position TCS well to translate opportunity into sustained growth," he said.
LTM reported AI revenue separately for the first time, revealing AI revenue of $150 million during the quarter, accounting for 12.2% of quarterly revenue—the highest AI revenue contribution among the three IT companies.
ALSO READ: TCS Q1 Results: AI Greenshoots, In-Line Profit And Lukewarm Dividend — Key Hits & Misses
The HCLTech management also highlighted a rapidly expanding AI opportunity, estimating the India AI market at nearly $20 billion. HCLTech said it plans to strengthen its domestic presence with AI-native solutions while selectively expanding its AI business globally.
Vijayakumar acknowledged that AI-led productivity gains could reduce revenue by 2-3%, but said stronger business growth is expected to offset this impact.
He also defended the company's decision to invest in data centres, calling it a strategic extension of its asset-light model as compute capacity becomes a key bottleneck in the AI value chain.
While revenue growth across the sector remained modest, strong deal pipelines, expanding AI adoption and continued enterprise technology investments suggest that large Indian IT companies remain optimistic about demand recovery through the remainder of fiscal 2027.
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