The leading Indian information technology firms ended the first quarter of FY26 on muted revenue growth. The change in April-June shows positive growth of up to 0.8% and 8.1% compared to the year earlier. This performance indicates further macroeconomic uncertainty and a slowdown in client spending decision-making.
Wipro recorded the lowest growth at 0.77% and achieved a revenue of 22,135 crore. Nevertheless, the company's net profit increased by 9.8% to 3,336.5 crores. Its segment of IT services experienced a slight annual advancement of 0.8% yet has experienced a 1.6% decrease since the last quarter. Wipro estimated an incremental revenue trend of between -1 and 1% in the next quarter.
The largest company in the country providing IT services, Tata Consultancy Services (TCS), registered growth in revenue of 1.3% to 63,437 crores, which was also reported as 5.9% growth in net profit to 12,760 crores. The TCS CEO, K. Krithivasan, attributed the recession to a lower demand because of the uncertainty that prevailed around the world.
Infosys's top-line gain was 7.5% to 42,279 crore. The net profit was 6,921 crore, an increase of 8.6%. The company was able to land deals worth $3.8 billion, which is why it could revise its full-year revenue guidance to 1-3%, which was previously set to 0-3%.
HCL Technologies recorded the highest revenue growth of 8.1%, standing at 30,349 crores, among other competitors. Net profit, however, declined 9.7% to 3,843 crore, mainly because of a cost increase and a one-time bankruptcy of a client. Tech Mahindra's revenue increased by 2.65% to Rs 13,351.2 crore. The improvement in efficiency and a reduced operating cost led to an increase in the net profit by 33.9% to 1,140.6 crore.
On the whole, cost optimisation and the use of artificial intelligence were at the centre of attention among IT companies. Wipro and Infosys observed that the clients are investing in projects that have short-term returns. The consolidation of vendors and digital transformation is increasingly becoming popular, especially in AI and data platforms.
The management teams remained cautiously optimistic about the quarters to come. Though discretionary spending is not back on even footing yet, companies are anticipating resuming recovery as macroeconomic conditions improve.