Noida, Oct 16 (APAC Media): India’s top information technology firms posted divergent results in the September quarter of FY27, as artificial intelligence (AI) adoption, contract wins and profitability shaped their performance.
TCS, HCLTech and Tech Mahindra recorded year-on-year growth in net profit, while Wipro saw earnings decline amid a slowdown in large-deal bookings.
With businesses stepping up investments in AI-driven transformation, automation and digital technologies, IT service providers are seeking to convert rising demand into new contracts and sustainable revenue.
However, the pace of AI adoption alone may not guarantee stronger financial growth, as deal execution, client spending and operating margins continue to influence quarterly performance.
TCS continued to command the largest revenue base and reported substantial AI-related business, whereas Wipro faced pressure on profitability and deal bookings.
Earnings growth separates the four IT companies
TCS reported consolidated revenue of ₹73,188 crore for the quarter ended September, registering growth of 11.2% from a year earlier. Net profit increased 15% to ₹13,884 crore. Its annualised AI revenue run rate exceeded $3.1 billion, while total deal bookings reached $9.6 billion.
Despite the scale of its business, sequential constant-currency revenue growth stood at 0.5%, indicating that stronger momentum in overall business activity remains an important focus.
HCLTech posted revenue of ₹35,620 crore, up around 11.5% year-on-year. Net profit climbed 21.2% to ₹5,132 crore, while new deal bookings reached approximately $3.26 billion. The company also improved the lower end of its revenue growth guidance for FY27, reflecting its expectations for business performance in the coming quarters.
Tech Mahindra gains on profitability; Wipro faces headwinds
Tech Mahindra’s revenue rose 15.6% to ₹16,180 crore, while net profit increased 32.7% to ₹1,586 crore. Earnings before interest and taxes grew 40.5%, and new deal wins exceeded $1 billion.
The results point to improving operational efficiency, although sustained growth will depend on the company’s ability to maintain margins and translate contract wins into revenue.
Wipro reported revenue of ₹24,752.7 crore, marking a 9.1% annual increase. However, net profit fell 1.4% to ₹3,200.6 crore. Total deal bookings declined to $2.6 billion from $4.7 billion in the corresponding period last year, while large-deal bookings weakened sequentially.
The company is expanding its AI capabilities, but converting these investments into stronger revenue growth remains a key challenge.
AI adoption to influence future performance
The September-quarter results suggest that AI opportunities are becoming an increasingly important measure of competitiveness for IT service providers.
However, companies will also need to demonstrate consistent deal conversion, margin improvement and stable client spending to sustain growth.
An industry-wide assessment points to different strengths: TCS leads in AI revenue scale, HCLTech benefits from earnings growth and contract momentum, Tech Mahindra stands out for profit expansion, and Wipro needs to address weaker bookings and earnings pressure.
For investors, the next phase of performance will depend on future guidance, valuations and the extent to which AI demand translates into recurring business.
-ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.APAC business news
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