INFY

MUMBAI, Feb 24 (Reuters) - India's technology sector is expected to grow 6.1% this fiscal year, driven by artificial intelligence-led services as well as business at global capacity centres, an industry body said on Tuesday.

Nasscom expects the sector's revenue to rise past $300 billion in fiscal year 2026.

(Reporting by Sai Ishwarbharath B and Haripriya Suresh; Editing by Mrigank Dhaniwala)

((mailto: [email protected];))

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Shritama Bose and Ujjaini Dutta

NEW DELHI, Feb 23 (Reuters Breakingviews) - The dissonance surrounding India's artificial intelligence dreams came alive at the AI Impact Summit. The five-day confab in New Delhi last week hosted global A-listers from OpenAI CEO Sam Altman to Alphabet's GOOGL.O Sundar Pichai and attracted investment pledges of over $250 billion, including from Reliance Industries RELI.NS and the Adani Group. But the euphoria barely concealed the country's simmering anxieties around the fast-moving technology.

The 500,000 visitors at the shindig focusing on "bridging the global AI divide" included delegates from 118 countries and swarms of college students attending sessions on everything from the creator economy to AI in agriculture and defence. On Saturday, 88 nations and international groupings endorsed the Delhi Declaration, which commits to democratising AI resources.

Yet even as crowds during the week cheered India’s homegrown government-backed answer to OpenAI and DeepSeek, Sarvam AI’s demonstrations of its "extremely frugal" large language models for Indic languages underscored the steep challenge facing most countries seeking to preserve AI sovereignty. Without powerful domestic alternatives, attendees warned, India risks becoming a digital colony of the United States and China.

Also lacking was substantial discussion on job losses from AI. India already struggles to create the 8 million roles it needs each year to absorb new entrants into the workforce. Its vast IT software services industry and role as the world's back office places it at the sharp end of disruption. V Anantha Nageswaran, India's chief economic advisor, at least hinted at the scale of the looming challenge, calling it "a stress test of our state capacity" - a remark that resonates in a country known for weak policy implementation.

The summit also failed to build consensus on who should shoulder the gargantuan task of reskilling a workforce whose future already fuels frequent primetime television debates. Prime Minister Narendra Modi said reskilling must become a mass movement. In private, executives cast it as the government’s problem. Past precedent suggests India Inc will ultimately be forced to share the burden.

The lack of urgency perhaps stems from knowledge that multi-year contracts with global firms will buy outsourcers like Tata Consultancy Services TCS.NS, among India's largest employers, a few years to adapt. In time AI might create more jobs than it destroys, as Reliance's Chair Mukesh Ambani vowed to prove. But that's cold comfort for the swelling ranks of Indian workers caught up in the churn. For now, India has missed a chance to set the agenda for the Global South on this important topic. Hubris was poor cover.

Follow Shritama Bose on LinkedIn and X.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

The AI Impact Summit 2026 was held at New Delhi from February 16 to 20. The summit attracted 500,000 visitors, 20 heads of government and delegates from 118 countries, India's Ministry of Electronics and Information Technology said on February 20.

(Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the authors, Reuters customers can click on BOSE/ [email protected] and DUTTA/ [email protected]))

** Indian IT stocks .NIFTYIT rise as much as 1.5%

** Industry leaders Tata Consultancy Services TCS.NS and Infosys INFY.NS jump as much as 1.4% and 1.8%, respectively

** IT stocks currently up 0.7%, leading sectoral gains

** INFY on Tuesday said AI services could be a $300 billion-$400 billion market by 2030

** TCS' data centre unit signed up Microsoft MSFT.O-backed OpenAI as its first customer

** TD Cowen, which tracks INFY's ("Hold") U.S.-listed shares INFY.N, said in a note on Wednesday that co's AI-day earlier this week showed that it is "more friend than foe"

** Says INFY's projected revenue potential for the sector is bigger than previous digital and cloud cycles - TD Cowen

** However, says details lack concrete numbers, which would result in industry-wide fears persisting

** Cuts PT to $16 from $18, citing pressure in the software and services sector

** Analysts tracking INFY rate it "buy" on average, same as five other stocks on 10-member Nifty IT index - data compiled by LSEG

** INFY is down 14% this year, while IT index is down 13%

(Reporting by Nandan Mandayam in Bengaluru)

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Feb 18 (Reuters) - ** Indian IT services exporter Infosys INFY.NS unveiled a plan to capture AI services market set to reach at least $300 billion by 2030

** AI services formed 5.5% of INFY's Q3 revenue

** Shares drop 2.3% to 1,359.5 rupees

AI TAILWIND, NEAR-TERM CAUTION

** Morgan Stanley ("Equal-weight," PT: 1,760 rupees) says while INFY sees new AI services opportunities as net positive, net size of new opportunity remains unclear

** UBS ("Buy," PT: 1,870 rupees) says INFY management's comments show AI adoption would be progressive, not immediate, as feared

** BofA ("Buy," PT: 1,840 rupees) believes customer acceptance of INFY's AI services "positive sign" for market share prospects

** However, ICICI Securities ("Hold," PT: cut to 1,460 rupees) highlights enterprise AI programs yet to scale; sees no material improvement in rev growth trajectory

** HSBC ("Buy," PT: 1,870 rupees) views INFY as "worthy" recovery play in U.S. macro, discretionary IT spending

** Adoption of AI tools to impact Indian IT industry rev by 8%-10% over 3-4 years; to be growth accretive in mid-to-long term

** Guggenheim covers INFY's New York-listed shares INFY.N ("Neutral"), says it sees value in co's role as an "orchestrator for enterprise AI outcomes"

(Reporting by Nandan Mandayam in Bengaluru)

(([email protected]; Mobile: +91 9591011727;))

Feb 17 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS - INFOSYS UNVEILS AI FIRST VALUE FRAMEWORK

Source text: ID:nnAZN4SH461

Further company coverage: INFY.NS

(([email protected];))

Updates throughout

By Vivek Kumar M and Nandan Mandayam

Feb 13 (Reuters) - Indian IT shares logged their worst week in more than 10 months on Friday, extending a rout driven by fears of disruption from artificial intelligence tools that wiped about $50 billion off the sector's market capitalisation so far in February.

The launch of a tool by tech startup Anthropic last month triggered a global tech sell-off and intensified concerns that rapid adoption of generative AI could upend India's $283 billion IT services industry.

For the week, the Nifty IT .NIFTYIT slid 8.2%, its steepest drop since April 2025.

Analysts at J.P. Morgan flagged investor concerns that India's IT firms could miss growth targets as AI pushes clients to reallocate spending.

Sat Duhra, portfolio manager at Henderson Far East Income, said IT companies probably haven't done the greatest job in terms of communicating how they can turn AI into an opportunity rather than a threat.

The index fell as much as 5.2% on Friday before paring losses to settle 1.44% lower.

The losses on Friday were led by a 2.1% drop in industry leader Tata Consultancy Services TCS.NS. Infosys INFY.NS declined 1.2% and HCLTech HCLT.NS dropped 1.4%.

Friday's mid-session recovery was largely due to investors "buying the dip" on attractive valuations, Centrum Broking's Piyush Pandey said.

"Investors have largely over-reacted to the threat posed by these AI tools. It is important to note that IT companies remain relevant even in the age of AI, albeit with a leaner headcount."

JP Morgan noted that it's "overly simplistic" to assume that AI can automatically generate enterprise grade software and replace the value IT Services firms create across the cycle.

"IT Services companies remain the plumbers in the tech world, and if enterprise software/SaaS is rewritten on a bespoke basis by agents - it will need significant services plumbing to work in enterprise context and minimise AI slop."

(Reporting by Nandan Mandayam, Vivek Kumar M and Bharath Rajeswaran in Bengaluru, writing by Chandini Monnappa; Editing by Sonia Cheema and Janane Venkatraman)

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Feb 12 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS - INFOSYS COLLABORATES WITH EXXONMOBIL TO ADVANCE IMMERSION COOLING FOR SUSTAINABLE AI INFRASTRUCTURE

Further company coverage: INFY.NS

(([email protected];))

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Feb 10 - By Nidhi C Sai, Editor Online Production, with global Reuters staff

A global selloff in software stocks sparked by rapid advances in artificial intelligence has rippled to India's shores.

For its $283 billion IT industry built on labour-intensive outsourcing, the ramifications could be substantial. Is this just a bout of AI anxiety that will pass or does the industry need to evolve structurally? That's our focus this week.

Plus, India has scrapped proposed concessions for small cars in upcoming fuel-emissions rules to level the playing field. Scroll down for more on that.

THIS WEEK IN ASIA

China critic Jimmy Lai sentenced to 20 years in jail after landmark Hong Kong trial

As Japan's Takaichi creates election history, only markets stand in her way

China set to widen footprint in Bangladesh as India's ties decline

Thai PM Anutin's poll win calms turmoil but hard economic test awaits

Bangladesh votes in world's first Gen Z-inspired election

A 30-YEAR LEGACY UNDER PRESSURE

Indian IT stocks are facing a moment of reckoning. The launch of plug-ins for Anthropic's Claude Cowork agent, designed to automate tasks across legal, sales, marketing and data analysis, has rattled investors and triggered a sharp selloff last week in what has long been one of India's most reliable growth engines.

Indian software exporters lost $22.5 billion in market value last week, with the Nifty IT index .NIFTYIT falling about 7%, marking its steepest weekly fall in more than four months. The rout mirrored a brutal global selloff. Roughly $800 billion was wiped off the S&P 500 software and services index .SPLRCIS before a rebound, its worst performance against the broader market in 25 years, according to SocGen.

Some analysts warn that the IT sector, the flagship for India's exports since the 1990s, could be vulnerable to rapid advances in AI.

"The market fears (the AI tools) may replace IT services that are currently outsourced. What the real impact will be remains to be seen," said VK Vijayakumar, chief investment strategist at Geojit Investments.

Jefferies struck a darker tone. "There is more pain ahead for Indian IT," it said, adding that Anthropic's and Palantir's PLTR.O claims highlight how AI could potentially erode application-service revenues. "With application services accounting for 40%–70% of revenues, firms face growth pressures, and consensus growth estimates do not fully reflect this, posing downside risks to valuations," Jefferies said.

Brokerage Motilal Oswal estimates that 9%-12% of industry revenues could be eliminated over the next four years due to AI-led disruption.

The timing is particularly relevant. India's IT industry is otherwise benefiting from geopolitical tailwinds, with trade deals struck with the United States and the European Union expected to support cross-border services exports and reinforce India's position as a trusted technology partner.

But those policy positives offer little insulation from technological shock. While trade deals can help expand the volume of outsourced work, AI-led automation threatens to compress project timelines and reduce billable hours, striking at the labour-intensive model that has underpinned India's IT boom for decades.

PANIC OR EARLY WARNING?

Not everyone feels this is an existential threat. Some analysts see a classic case of markets running ahead of fundamentals.

Centrum Broking's Piyush Pandey called the selloff a “knee-jerk” reaction. "AI tools have been in the works, and this is how the industry is now shaping up. However, they are not expected to materially disrupt the industry as of now," he said.

JPMorgan said it was "illogical to extrapolate the launch of some tools to an expectation that companies will replace every layer of mission-critical enterprise software," while Kotak Institutional Equities described the decline as "plenty of panic over a little flutter".

That view is echoed at the very top of the AI value chain. Nvidia NVDA.O CEO Jensen Huang dismissed fears that AI will replace software as "the most illogical thing in the world". "If you were a human or robot… would you use tools or reinvent tools? The answer, obviously, is to use tools," he said.

Still, others remain cautious. "Surely, there would be other tools in the making… we don't foresee the glory days of the IT sector… returning soon," CapGrow Capital's Arun Malhotra said.

It is not that India's IT behemoths - TCS TCS.NS, Infosys INFY.NS and Wipro WIPR.NS - are sitting quietly. Infosys is forming new AI-led partnerships, TCS is embedding AI more deeply into its services, and Wipro is saying AI now underpins many of the deals it is chasing globally.

But can they adapt fast enough, or is AI rewriting the rules of outsourcing? Write to me at [email protected].

MARKET MATTERS

The U.S.–India trade deal has lifted the cloud over an unloved Indian rupee and may be enough to pause relentless foreign selling in stocks. But investors say a durable turnaround will require a rebound in earnings growth and stronger fundamentals.

The long-awaited agreement, announced first by President Donald Trump last week, sparked a market rally and the rupee's best gain in seven years, signalling improving diplomatic and trade ties with Washington.

Read this analysis on how India's markets are getting tariff relief but are not a buy yet, by Reuters journalists Jaspreet Kalra, Ankur Banerjee and Karin Strohecker.

Read more on how the India-U.S. trade deal is giving tariff-free access to Harley bikes, but no reprieve for Tesla TSLA.O.

THIS WEEK'S MUST READ

India has dropped a proposed fuel-efficiency concession for small cars after rival automakers argued it would disproportionately benefit market leader Maruti Suzuki MRTI.NS.

The revised draft tightens emissions rules across the board, removes weight-based leniency and introduces a steeper reduction pathway, increasing pressure on all car makers to accelerate electric and hybrid vehicle sales.

Read this exclusive report by Reuters journalist Aditi Shah.

(Reporting by Nidhi C Sai; Editing by Muralikumar Anantharaman)

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AI LEARNS THE LAW, MARKETS LEARN TO WORRY

Anthropic's new legal tool for Claude AI not only rattled AI-bubble nerves but also cast a shadow over global economies heavily reliant on the export of telecommunications, computer, and information services (ICT), according to Standard Chartered.

For Ireland and India - economies particularly exposed to potential software export slowdown, even a 10% reduction in exports could lower their GDP growth by 1 percentage point each, Standard Chartered said in a note.

"Even a smaller share of the workforce in impacted sectors would translate into significant absolute layoffs for the more populous EM economies like India (where about 5.5 million people are employed in the ICT sector)," said Madhur Jha, global economist and head of thematic research at Standard Chartered.

Top software exporters Tata Consultancy Services TCS.NS, Infosys INFY.NS, HCLTech HCLT.NS, and Tech Mahindra TEML.NS lost between 5.8% and 8.1% last week at the peak of the selloff.

U.S. AI developer Anthropic launched plug-ins for its Claude Cowork agent that would automate tasks across legal, sales, marketing and data analysis.

The launch revived fears that increasingly capable AI tools could dent demand for traditional software, compress margins and cost jobs, triggering a deep selloff in global software stocks.

The S&P 500 software and services index .SPLRCIS has fallen 7.5% as of last week and has seen around $1 trillion in market value evaporate since January 28.

(Kanchana Chakravarty)

*****

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POLICY UNCERTAINTY NOT CONFINED TO THE DOLLAR CLICK HERE

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JAPAN MARKETS WELCOME CHANCE OF A LONG-STAY PM CLICK HERE

Feb 6 (Reuters) - Indian software exporters shares .NIFTYIT fell about 2% on Friday and were headed for their worst week in over four months, as rapid advances in artificial intelligence deepened worries that high-margin application-services revenues for Indian IT firms could come under pressure.

The sub-index was the biggest sectoral loser on the day, with all 10 constituents trading in the red. Coforge COFO.NS led losses with its 3.8% drop.

TCS TCS.NS and Infosys INFY.NS fell nearly 2% each. Nifty 50 .NSEI was down 0.3%.

The IT index has dropped 6.8% so far this week and was set for its biggest drop since September 2025.

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]; 8800437922;))

Feb 5 (Reuters) - Rapid advances in artificial intelligence, triggered in part by Anthropic's latest automation push, could structurally erode the IT sector's high-margin application services revenues, creating downside risks to earnings and valuations, analysts warn.

Shares in India's software exporters .NIFTYIT fell 0.7% on Thursday, a day after plunging 6% in their worst session for nearly six years, as AI-driven automation from U.S.-based Anthropic and Palantir fuelled fears of compressed project timelines and disruption to the industry's labour-intensive business model.

The weakness has echoed across global IT stocks this week, extending a broader selloff in companies seen as most exposed to potential AI disruption.

"There is more pain ahead for Indian IT," Jefferies said, adding that Anthropic's and Palantir's claims highlight how AI could potentially erode application service revenues for IT firms.

"With application services accounting for 40–70% of revenues, firms face growth pressures, and consensus growth estimates do not fully reflect this, posing downside risks to valuations."

However, some analysts said the sharp selloff may be overdone.

JPMorgan said that while concerns around AI disruption were not without merit, it was illogical to extrapolate the launch of some tools to an expectation that companies will replace every layer of mission-critical enterprise software.

Domestic brokerage Kotak Institutional Equities described the decline as a case of "plenty of panic over a little flutter".

(Reporting by Kashish Tandon and Bharath Rajeswaran in Bengaluru. Writing by Chandini Monnappa. Editing by Mark Potter)

(([email protected]; 8800437922;))

.

By Sneha Kumar

Feb 4 (Reuters) - Equities in emerging Asian economies wobbled in afternoon trade on Wednesday as investors sold off technology stocks, while auto and battery makers helped South Korean shares notch a record closing high.

The MSCI gauge of Asian emerging stocks .MIMS00000PUS inched higher after trending in negative territory for much of the Asian session, driven by a 1.6% gain in South Korea's benchmark KOSPI index .KS11.

A global selloff in information technology stocks spilled into Asia after AI firm Anthropic launched workplace productivity tools, raising concerns of disruption across the sector. MKTS/GLOB

The MSCI index of emerging Asia information technology stocks .MIMS0IT00PUS slipped 0.7%. China's CSI Software Services Index .CSI930601 fell 1.8%, while technology giants listed in Hong Kong .HSTECH lost 1%.

India's IT shares .NIFTYIT plunged nearly 7%, with sector heavyweights Infosys INFY.NS and TCS TCS.NS falling between 7% and 8%.

"Software stocks were especially hard hit because Anthropic rolled out new tools for its Cowork product," analysts at Yardeni Research said in a note.

"It is too soon to tell how useful the new tools will be, but investors decided to cut the valuation multiples of software stocks."

In South Korea, the KOSPI index .KS11 extended gains to notch a record closing high. Car makers Hyundai Motor 005380.KS and Kia Corp 000270.KS rose about 2% each, while battery maker LG Energy Solution 373220.KS jumped 3%.

Chipmaker Samsung Electronics 005930.KS gained 1% to post a record close after trading in negative territory for much of the session, while peer SK Hynix 000660.KS slipped 0.8%.

Tech-heavy Taiwan shares .TWII climbed 0.3%. Financials and industrial stocks were among the major gainers, while top contract chipmaker TSMC 2330.TW slipped 0.8%.

Singapore stocks .STI hovered near their all-time highs, propped up by major banks, consumer, and industrial stocks.

Thailand shares .SETI rose 0.5%, while Philippine equities .PSI reversed course to slip 0.4%. Indonesia's Jakarta Composite index .JKSE dipped 0.4%, shedding almost 3% so far this week after last week's nearly 7% decline.

Limiting losses, Barito Pacific BRPT.JK and Chandra Asri Pacific TPIA.JK climbed 5.6% and 2.3%, respectively, after announcing market buybacks amid a market rout.

Regional currencies were largely subdued, with the Thai baht THB=TH gaining the most with a 0.3% rise ahead of the country's general election on February 8.

The South Korean won KRW=KFTC pared losses after the country's vice welfare minister said she hopes the National Pension Service will start issuing foreign-currency bonds by the end of the year.

In India, the rupee INR=INH slipped 0.2%, relinquishing some of the previous session's gains made after a trade deal that cut U.S. tariffs on Indian goods to 18% from 50%.

HIGHLIGHTS:

** Yield on Indonesia's 10-year bonds ID10YT=RR at 6.364%

** Nvidia's Huang dismisses fears AI will replace software tools as stock selloff deepens

** Thailand's ex-PM Abhisit returns to political fray in boost for his party

** KKR, Singtel pay $5.2 billion for full control of data centre operator STT GDC

(Reporting by Sneha Kumar in Bengaluru; Editing by Subhranshu Sahu)

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Feb 3 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS - INFOSYS COLLABORATES WITH CITIZENS ON AI-FIRST INNOVATION HUB

Source text: ID:nBSE1CknJg

Further company coverage: INFY.NS

(([email protected];))

Adds segment details in paragraph 7 and background in paragraph 9

Jan 29 (Reuters) - Indian consumer goods conglomerate ITC ITC.NS reported a 10% fall in quarterly profit on Thursday, hurt by higher raw material costs and a one-time charge tied to the country's new labour codes.

The company, which also sells instant noodles and other food products, said its standalone quarterly profit fell to 50.89 billion rupees ($553.68 million) for the quarter ended December 31, from 56.38 billion rupees a year ago.

The company took a one-time charge of 2.74 billion rupees tied to the country's new labour codes.

India's new labour codes — the country's biggest overhaul of workers' laws in decades — have dragged profits of corporate firms across sectors, from Godrej Consumer Products GOCP.NS and Mahindra Holidays and Resorts India MAHH.NS to Wipro WIPR.NS and Infosys INFY.NS.

ITC's total expenses, too, rose 5% to 134.72 billion rupees due in part to higher prices of raw materials including edible oil, wheat and leaf tobacco.

Leaf tobacco prices have climbed in recent quarters at a time when export demand has picked up, weighing on ITC's profitability even as cigarette volumes have held up for India's market leader.

Revenue from the cigarettes business, ITC's largest segment, grew 8% in the third quarter. The company's consumer goods segment, which houses popular household brands such as Aashirvaad flour, Sunfeast biscuits and Yippee noodles, grew 11%.

Overall revenue rose 6% to 193.59 billion rupees.

However, ITC faces further pressure as India has imposed excise duty on cigarettes in addition to a 40% goods and services tax in a move that could increase prices of cigarettes for an estimated 100 million smokers in the country.

"Such a steep increase will provide further impetus to illicit trade," ITC said in a statement.

($1 = 91.9130 Indian rupees)

(Reporting by Komal Salecha in Bengaluru and Praveen Paramasivam in Chennai; Editing by Janane Venkatraman and Shailesh Kuber)

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Jan 27 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS AND CURSOR ANNOUNCE STRATEGIC COLLABORATION

Source text: ID:nBSE58yCs1

Further company coverage: INFY.NS

(([email protected];))

Jan 23 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS - EXPANDS FOOTPRINT IN SWITZERLAND WITH NEW ZURICH OFFICE

Further company coverage: INFY.NS

(([email protected];))

Recasts paragraph 1, adds details and analysts' comments

Jan 19 (Reuters) - Wipro WIPR.NS, India's fourth-largest IT services exporter, slumped as much as nearly 10% on Monday after a lacklustre fourth‑quarter revenue forecast and muted deal wins, which lagged those of larger rivals, weighed on investor sentiment.

Wipro's stock was trading 6.7% lower at 248.75 rupees, as of 10:38 a.m. IST, and was on track for its steepest fall since July 2024. It was also the top percentage loser in the benchmark Nifty 50 .NSEI and the IT index .NIFTYIT, which fell 0.8% and 0.7%, respectively.

The Bengaluru-based company expects its fourth-quarter revenue to be flat to up 2% sequentially, including contributions from acquisitions. Total deal bookings for the third quarter stood at $3.34 billion, the lowest in six quarters.

The outlook suggests slower conversion of deals into revenue and weaker growth visibility heading into fiscal 2027, compared with peers such as TCS TCS.NS and Infosys INFY.NS, potentially widening the company's valuation gap, Morgan Stanley analysts said in a note.

They downgraded Wipro's stock to "underweight" from "equal-weight" and slashed price target to 242 rupees from 270 rupees.

Wipro trades at a 12-month forward P/E of 19.7x, compared with 21.3x for TCS TCS.NS and 22.5x for Infosys, highlighting a valuation discount relative to its larger peers.

"Wipro is facing double whammy of not being able to sustain the revenue nor curb costs and maintain the profitability," said Gaurav Vasu, founder of market intelligence firm UnearthInsight.

"Among the top four, they have the lowest margins."

Wipro's third-quarter results sent its U.S.-listed shares down as much as 7.2% on Friday.

Softer deal bookings and delays in project ramp-ups contributed to the weaker‑than‑expected fourth-quarter growth outlook, according to Jefferies analysts.

The company's muted outlook contrasts with larger rivals TCS and Infosys, which reported steady deal wins and better‑than‑expected revenue in the seasonally weak third quarter.

(Reporting by Kashish Tandon and Sai Ishwarbharath B in Bengaluru; Editing by Janane Venkatraman and Sherry Jacob-Phillips)

(([email protected]; 8800437922;))

Adds details throughout

BENGALURU, Jan 16 (Reuters) - Indian software services provider Tech Mahindra TEML.NS reported bigger-than-expected third-quarter revenue on Friday, aided by growth in its communications and manufacturing segments.

Revenue at India's fifth-largest IT firm rose 8.3% to 143.93 billion rupees ($1.58 billion) in the three months ended December 31. Analysts, on average, expected revenue of 141.58 billion rupees, according to data compiled by LSEG.

The communications division's revenue, which accounts for a third of the Pune-based company's total, rose 4.7%, while revenue at its manufacturing division - its second-largest, grew the most at 11.7%.
Net profit for the quarter increased 14.1% to 11.22 billion rupees, missing analysts' expectations of 13.89 billion rupees as the company took a one-time charge of 2.72 billion rupees due to India's newly enacted labour codes.

Tech Mahindra's net new order bookings rose to $1.1 billion from $745 million a year earlier.

Its Mumbai-listed shares closed 5.2% higher ahead of the results.

Larger peers such as Tata Consultancy Services TCS.NS, Infosys INFY.NS, and HCLTech HCLT.NS reported higher numbers on the revenue front, but missed profit estimates due to the impact of the labour code provisions.

($1 = 90.8340 Indian rupees)

(Reporting by Sai Ishwarbharath B; Editing by Sonia Cheema)

(([email protected];))

Updates share levels in paragraph 2

By Sai Ishwarbharath B and Haripriya Suresh

BENGALURU, Jan 14 (Reuters) - India's No. 2 software services exporter Infosys INFY.NS unexpectedly raised its revenue forecast on Wednesday and signaled a healthy demand outlook, citing steady discretionary tech spending and renewed momentum in its core financial services business.

The forecast lifted its U.S.-listed shares 10% in early trade and came just two days after market leader Tata Consultancy Services TCS.NS flagged strong demand in 2026, pointing to a possible rebound in India's $283 billion IT sector.

Clients who had cut discretionary spending amid tariff-related uncertainty are now funding AI projects.

AI DRIVES RECOVERY HOPES

"There is an industry-wide recovery as certain tech spends can't be postponed beyond a point. It's this incremental improvement in demand that is helping the industry on a gradual recovery path," said Centrum Broking analyst Piyush Pandey, who called Infosys' forecast revision a "positive surprise".

For the fiscal year ending March 2026, Infosys said it expects revenue growth of 3% to 3.5%, versus its own earlier estimate of 2% to 3%.

Three brokerages had expected the company to narrow the range to 2.5%-3%.

"We have become (the) AI partner of choice for (the) largest clients in financial services and energy (sectors). Therefore, we see a good outlook even as we look into the next financial year," CEO Salil Parekh said in a post-results press conference.

Peers Tata Consultancy Services TCS.NS and HCLTech HCLT.NS beat revenue estimates on Monday and also talked of AI-led demand.

Third-quarter revenue for Infosys rose 8.9% to 454.79 billion rupees ($5.04 billion), beating the LSEG-compiled average analysts' estimate of 452.27 billion rupees.

Revenue from the financial services segment, which accounts for nearly a third of sales, increased 3.9%.

Infosys, which won AI-led deals with Adobe ADBE.O and Siemens AG SIEGn.DE in 2025, did not disclose revenue from AI projects. Last month, Accenture ACN.N beat first-quarter revenue estimates on strong demand for AI-driven IT services.

Net profit for the reported quarter fell 2.2% to 66.54 billion rupees, missing the average estimate of 73.79 billion rupees on a one-time charge of 12.89 billion rupees linked to India's new labour codes.

Large order bookings, defined as deals above $50 million, rose to $4.8 billion from $3.1 billion in the previous quarter and $2.5 billion a year earlier.

($1 = 90.2990 Indian rupees)

(Reporting by Sai Ishwarbharath B and Haripriya Suresh in Bengaluru; Editing by Dhanya Skariachan and Nivedita Bhattacharjee)

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BENGALURU, Jan 12 (Reuters) - Tata Consultancy Services TCS.NS, India's largest software services firm, posted a bigger-than-expected third-quarter revenue on Monday as artificial intelligence-led demand ramped up.

The company's consolidated revenue increased 4.9% to 670.87 billion rupees ($7.44 billion) in the third-quarter ended December 31, surpassing analysts' expectation of 666.76 billion rupees, as per data compiled by LSEG.

($1 = 90.1660 Indian rupees)

(Reporting by Sai Ishwarbharath B; Editing by Janane Venkatraman)

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By Bharath Rajeswaran and Sai Ishwarbharath B

Jan 8 (Reuters) - India's information technology firms are expected to report another muted quarter, as tepid demand in the U.S. and holiday-period client shutdowns continue to weigh on tech spending, nine brokerages said ahead of earnings.

Brokerages expect the top six IT firms by revenue to post about 4% year-on-year revenue growth and a 5% rise in profit for the December quarter on average, reflecting prolonged demand softness, compared with 6.5% revenue growth in the September quarter.

Indian software exporters last reported double-digit revenue growth in the March quarter of 2023, when digital transformation, cloud adoption and remote-work demand surged in the post-pandemic period.

The broader $283 billion Indian IT industry continues to face macro headwinds, including uncertainty over U.S. tariffs, challenges from proposed $100,000 visa fees, and subdued client spending on concerns about growth in the world's largest economy.

India's IT companies earn a significant share of their revenue from the United States, making the world's largest economy crucial for the sector.

Sector bellwether Accenture's ACN.N recent earnings beat Wall Street expectations on AI-led demand, though its unchanged growth outlook underscores the cautious near-term environment.

Although India has no pure-play AI firms, IT companies are beginning to shape AI strategies through acquisitions and partnerships. Brokerages expect AI momentum to build over the next six months and demand to pick up into 2026.

"Clients remain cautious about committing incremental spending to large programs amid macro and tariff uncertainty and a new tech cycle," said Abhishek Pathak, research analyst at Motilal Oswal Financial Services.

U.S. tariff uncertainty, visa worries and weak spending drove record foreign outflows of $8.5 billion from IT stocks in 2025, nearly half of total foreign exits from Indian equities.

The Nifty IT index .NIFTYIT fell 12.6% in 2025, making it the worst-performing sector as Indian markets lagged Asian and emerging-market peers.

Tata Consultancy Services TCS.NS, the country's largest IT firm, will kick off the earnings season on January 12. Its revenue is expected to rise about 4.2% year-on-year, slower than the 5.6% growth reported last year.

Infosys INFY.NS and HCLTech HCLT.NS are forecast to report year-on-year revenue growth of about 8.1% and 4.6%, respectively, compared with 7.6% and 5.1% in the year-ago period.

Most brokerages do not expect HCLTech to upgrade its fiscal 2026 annual revenue forecast of 2%–3%, or Infosys to raise its forecast of 3%–5%.

Earnings across domestic equities are expected to improve in the December quarter on tax cuts, policy easing, stable growth and benign inflation, even as the period remains structurally weak for IT firms.

Fewer working days due to global client holidays weigh on billing and revenue, while brokerages flag margin pressure from furloughs and wage hikes at firms such as TCS and Wipro WIPR.NS.

However, resilience in the BFSI (banking, financial services and insurance) segment, deal ramp-ups, early signs of artificial intelligence strategy formation and rupee depreciation could offer support by mid-2026, six brokerages said.

(Reporting by Bharath Rajeswaran and Sai Ishwarbharath B in Bengaluru; Editing by Sherry Jacob-Phillips)

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Jan 7 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS AND AWS COLLABORATE TO ACCELERATE ENTERPRISE ADOPTION OF GENERATIVE AI

Source text: ID:nPn63t6z2a

Further company coverage: INFY.NS

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Dec 30 (Reuters) - Infosys Ltd INFY.NS:

• GETS TAX PENALTY FOR 74.9 MILLION RUPEES

Source text: ID:nBSEbX8c4G

Further company coverage: INFY.NS

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Dec 19 (Reuters) - Infosys Ltd INFY.NS:

• INFOSYS: HAS OBSERVED VOLATILITY IN PRICE OF ITS AMERICAN DEPOSITARY RECEIPT ON NEW YORK STOCK EXCHANGE ON DECEMBER 19

• INFOSYS - STATES NO MATERIAL EVENTS REQUIRE DISCLOSURE UNDER SEBI REGULATIONS

Source text: ID:nBSE3JsMNb

Further company coverage: INFY.NS

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Dec 11 (Reuters) -

• MICROSOFT: ANNOUNCED PARTNERSHIPS WITH COGNIZANT, INFOSYS, TCS AND WIPRO TO ACCELERATE ADOPTION OF AGENTIC AI

Source text - https://bit.ly/4oJHhXJ

Further company coverage: CTSH.O

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Corrects advisory to remove repeated words, adds author's name to headline. The views expressed here are those of the author, the founder and CEO of Emmer Capital Partners Ltd.

By Manishi Raychaudhuri

HONG KONG, Nov 27 (Reuters) - As investors grow increasingly wary of the U.S.-led artificial intelligence frenzy, some “AI losers” in Asia may start to see their fortunes change.

The markets’ fascination with AI has boosted the “Magnificent Seven” – Amazon AMZN.O, Alphabet GOOGL.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O, Nvidia NVDA.O and Tesla TSLA.O – as well as Asian AI leaders, including chip and memory manufacturers in Taiwan and Korea and large language model (LLM) developers listed in Hong Kong.

In contrast, Indian and Southeast Asian equities have underperformed enormously. That's not only because direct AI beneficiaries are hard to find in these regions, but also because some key sectors there face serious threats from rapid AI adoption or from simple investor apathy.

AI LOSERS

Asia’s service sector is highly at risk of AI disruption.

Routine and repetitive jobs like call centres, telemarketing, accounting, administrative support are particularly vulnerable as state-of-the-art AI technology gets more proficient.

It’s therefore unsurprising that several Indian information technology (IT) service companies, including Tata Consultancy Services TCS.NS, Infosys INFY.NS and Wipro Technologies, have underperformed sharply in the past year.

The Philippines is another prime example of an economy with a vulnerable service sector. About half of the country’s service exports include business process outsourcing (BPO), call centres and IT services - all areas that could be disrupted by AI.

Foreign equity investors appear to be getting antsy. They have withdrawn $840 million from the country this year, according to the Philippine Stock Exchange, pushing down the Philippine peso against the U.S. dollar and sending its main equity index tumbling by more than 10%.

AI adoption could obviously have a massive negative impact on the labour markets in these service-exporting giants and, by extension, their domestic consumption and overall economic activity.

Looking at current U.S. employment, Goldman Sachs estimates 2.5% could be at risk from AI, primarily jobs in services, including many industries – like customer services, computer support and business operations – where multinational companies have been outsourcing work to Asia in recent years.

INVESTOR APATHY

Another knock-on effect of the AI boom has been the disregard of many fundamentally strong sectors in Asia.

For example, share prices in India’s producer manufacturing sector – also known as industrials – have fallen by around 7% in the year through November 25, even though consensus estimates for 2025 and 2026 earnings growth are at 15% and 25%, respectively.

Importantly, investors were attracted to thematic stories surrounding many of these now seemingly forgotten sectors until recently. Indian electronic manufacturing, for instance, has been supported by companies’ efforts to shift away from China as well as India’s rising focus on indigenous defence manufacturing.

But such themes fell by the wayside as the AI narrative dislodged almost everything else.

WHEN THE FRENZY FADES

The AI frenzy has cooled lately as investors have looked warily at the steep valuations of the "Mag 7" and questioned whether hyperscalers’ enormous capex outlays can yield commensurate returns.

If this trepidation builds, investors may seek to lighten their large AI plays and deploy capital elsewhere. Some well-known hedge funds, like Michael Burry’s Scion Asset Management, have reportedly done so already.

In such a scenario, could some of today’s Asian equity laggards become tomorrow’s blockbusters?

Industries that have fallen victim to the “market apathy” narrative certainly could recover, if investors go bargain hunting.

However, sufferers from AI disruption may not, unless they reinvent themselves. That, of course, has massive implications for service-exporter economies throughout Asia.

It is also possible that investors still keen on AI but anxious about pricey U.S. tech stocks could look to rotate into some of Asia’s lower-priced AI winners. For example, Korean giants such as Samsung 005930.KS and SK Hynix 000660.KS are still trading at single-digit price-to-earnings multiples.

Chinese internet platforms, such as Alibaba 9988.HK and Tencent 0700.HK, may prove resilient too. They are deploying LLMs to expand and improve their already cash-generative businesses, but unlike many of their U.S. peers, they have been conservative with their AI spending.

When the dust settles on the AI boom, there will certainly be some reshuffling of winners and losers. But given how transformative the technology could be, some of Asia’s vulnerable service industries may never catch up.

(The views expressed here are those of Manishi Raychaudhuri, the founder and CEO of Emmer Capital Partners Ltd and the former head of Asia-Pacific Equity Research at BNP Paribas Securities.)

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(Writing by Manishi Raychaudhuri; Editing by Anna Szymanski and Marguerita Choy)

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** The Nifty IT index .NIFTYIT falls 1.5%, dragged by losses in Wipro WIPR.NS and Infosys INFY.NS,

** Wipro down 4.6%, Infosys sheds 1.9%

** Analysts flag mixed results, even as the two IT firms posted better-than-expected quarterly revenue

** Wipro's Q2 operating margins fell q/q; its acquisition of Harman's DTS unit and deal ramp-up of recently won large deals will further pressure margins in near term - Jefferies

** Infosys narrowed its rev growth forecast for FY26 to 2%-3% from 1%-3%, which Jefferies analysts say implies a -1.5% to 0% compound quarterly growth rate as upper end of range remains same

** Adds, the growth rate appears weak

** UBS analysts say INFY EBIT margins stood at 21%, lower than their 21.4% estimate

** LTIMindtree LTIM.NS rose 0.4% and was the only stock in the 10-member index to trade in the green after it beat quarterly earnings view

** IT index is down ~19% so far in 2025 vs 8% rise in benchmark Nifty 50 index .NSEI

(Reporting by Manvi Pant in Bengaluru)

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