- TCS led Q2 deal wins at $9.6 billion, while Infosys showed strong growth with $5.2 billion in deals
- HCLTech posted highest sequential revenue growth at 2.3%, surpassing peers including TCS and Infosys
- Infosys cut FY27 revenue guidance to 1%-2%, while HCLTech raised its outlook to 2.5%-4% growth
India's four major IT services companies Tata Consultancy Services (TCS), Infosys, HCLTech and Wipro reported mixed performance in the September quarter, with differences emerging in deal wins, revenue growth, hiring trends and artificial intelligence (AI) adoption.
HCLTech led the group in sequential constant-currency revenue growth, while TCS reported the highest deal wins at $9.6 billion. Infosys delivered a strong quarter for large deal wins and AI revenue, even as it lowered its full-year revenue growth guidance. Wipro, meanwhile, continued to face pressure on bookings and headcount, although its revenue performance improved from the June quarter.
The results highlight how India's IT services companies are navigating cautious client spending while positioning themselves for growth from AI-led transformation projects.
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Deal Wins: TCS Leads In Value, Infosys Records Strong Growth
TCS reported deal wins worth $9.6 billion in Q2FY27, marginally higher than $9.5 billion in the preceding quarter. However, the total fell short of the $10 billion estimate.
Infosys reported deal wins of $5.2 billion, up from $3.6 billion in Q1. The quarter included two mega deals, and 62% of the total contract value came from net new deals. The performance was better than expected and provided a positive signal on demand for its services.
HCLTech recorded new bookings of $3.25 billion, up 35.5% sequentially from $2.4 billion in the June quarter. The company described this as its second-highest quarterly booking total and said it had recorded its strongest first half on record. Management said demand had been building over the preceding quarter, although it remained cautious because of the volatile operating environment. It also expected the 2027 budget to be better than the previous one.
Wipro's total bookings declined to $2.6 billion from $3.3 billion in Q1, a sequential fall of 22.9% in constant-currency terms. Large-deal total contract value dropped 58.6% to $700 million from $1.6 billion. Wipro CFO Aparna C. Iyer said some deals expected to close in the September quarter had been delayed and were expected to flow through in the December quarter. The company highlighted wins in energy and continued traction in travel, transportation and consumer businesses.
On deal momentum, TCS led in absolute value, while Infosys and HCLTech delivered stronger sequential performances. Wipro's delayed deal closures and lower large-deal bookings remained areas of concern.
Revenue Growth: HCLTech Leads The Pack
HCLTech recorded the strongest sequential constant-currency revenue growth among the four companies, at 2.3%. This marked a recovery from the 0.5% decline in Q1, although it was slightly below the 2.5%-3% expectation cited in the estimates.
Infosys reported sequential constant-currency revenue growth of 1.2%, compared with 1% in the June quarter. The performance was broadly in line with expectations, but the company cut its FY27 revenue growth guidance to 1%-2% from 1.5%-3% earlier.
TCS reported constant-currency revenue growth of 0.5%. Its international revenue grew 1.2% sequentially in constant-currency terms.
Wipro reported flat constant-currency revenue growth, an improvement from the 1.2% sequential decline in the previous quarter.
On reported sequential constant-currency growth, HCLTech ranked first, followed by Infosys, TCS and Wipro. However, the comparison reflects only the reported growth rates and does not capture differences in profitability, business mix or full-year outlook.
Guidance: HCLTech Raises Its Outlook, Infosys Cuts Its Forecast
The companies' guidance offered contrasting signals on demand and growth visibility.
HCLTech narrowed its FY27 revenue growth guidance to 2.5%-4% from the earlier range of 1%-4%. Its services revenue growth guidance was revised to 3%-4% from 1.5%-4.5%, while its EBIT margin guidance remained unchanged at 17.5%-18.5%.
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Infosys took the opposite approach, lowering its full-year constant-currency revenue growth forecast to 1%-2% from 1.5%-3%. The revision reflected weakness in discretionary spending, particularly among retail and high-tech clients, alongside softer volumes and pricing pressure. Its operating margin guidance remained unchanged.
Wipro expects IT services revenue to decline 1.5% or grow 0.5% sequentially in constant-currency terms in the December quarter. The company said the outlook was consistent with the seasonal weakness typically seen during the period. Iyer said Wipro remained confident about the coming quarters, supported by its pipeline and deal wins, and expected robust bookings in Q3.
The contrasting outlooks put HCLTech in a stronger position on guidance, while Infosys faces the challenge of converting AI opportunities and large deals into broader revenue growth.
Hiring: HCLTech And TCS Add Employees, Wipro Headcount Falls
HCLTech recorded net employee additions of 6,450 in Q2, reversing a net reduction of 3,292 in the previous quarter. Its attrition rate edged up to 12.8% from 12.7%.
TCS added 4,258 employees sequentially, marking its third consecutive quarter of workforce expansion. Its total workforce stood at 598,056 at the end of September, while last-12-month attrition in IT services remained stable at 13.3%.
Infosys reported a net increase of 4,000 employees during the quarter, taking its total headcount to around 3.33 lakh from 3.28 lakh in Q1. The company hired 8,000 freshers during the quarter, and attrition eased to 12.7% from 13% in the previous quarter. Infosys said its earlier hiring guidance remained intact and that it had completed around half of its planned headcount additions in the first half of the financial year.
Wipro's headcount fell by 6,716 sequentially to 236,328. Attrition edged down to 13.8% from 13.9%. The company hired around 1,000 freshers in the first half and plans to step up recruitment in the second half, with its intended fresher intake expected to be similar to the 7,500 hired last year.
HCLTech recorded the highest net employee additions among the companies for which figures were provided, followed by TCS and Infosys. Wipro's declining headcount stood in contrast to the workforce expansion reported by its peers.
AI: TCS Leads In Annualised Revenue, Infosys Reports Strong Sequential Growth
AI remained a central growth theme for all four companies, but their reported metrics differ and should not be treated as directly comparable.
TCS reported annualised AI revenue of $3.1 billion, crossing 10% of its revenue and continuing to grow at a double-digit rate. The company said clients were increasingly adopting an AI-plus-human approach and that AI-related revenue carried higher margins than its overall business.
Infosys reported AI revenue of $540 million in Q2, up 29% sequentially from $417 million in Q1. AI accounted for 10.5% of its total revenue, highlighting the growing contribution of the business. Management said several AI projects were progressing well but acknowledged that AI was also causing compression in traditional services revenue.
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HCLTech's advanced AI revenue rose 28.4% sequentially in constant-currency terms to $219 million from $171 million in Q1. Management said the higher-margin business was contributing to profitability and that it intended to reinvest gains to strengthen its position in AI.
Wipro said clients were focusing on cost optimisation, legacy modernisation and scaling agentic AI. CEO Srini Pallia said investments in AI services were helping the company pursue opportunities beyond traditional technology spending, with growth emerging across AI model systems.
TCS leads on the reported annualised AI revenue figure, while Infosys recorded the fastest sequential growth among the disclosed AI revenue figures for TCS, HCLTech and Infosys. The metrics use different definitions and reporting periods, so they do not establish a like-for-like ranking of the companies' overall AI businesses.
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