TCS

Adds analyst comment in paragraphs 6-8

By Haripriya Suresh

BENGALURU, July 27 (Reuters) - India's largest IT services provider Tata Consultancy Services TCS.NS will reduce its workforce by 2% in its 2026 financial year, primarily affecting middle and senior management, the company said on Sunday.

The move will eliminate roughly 12,200 jobs from the company's workforce of more than 613,000 as TCS deploys AI and other technologies while entering new markets and contending with an uncertain demand outlook.

"This transition is being planned with due care to ensure there is no impact on service delivery to our clients," the company's statement said.

India's $283 billion IT sector has had to contend with clients holding back non-essential technology spending because of weak demand, persistent inflation and lingering uncertainty over U.S. trade policies.

TCS Chief Executive K Krithivasan said this month that there were delays in client decision-making and project starts.

Phil Fersht, CEO of IT advisory firm HFS Research, said that the impact of AI is eating into the people-heavy services model in the sector.

"(That model) is forcing large service providers such as TCS to rebalance their workforces to maintain profit margins and stay price-competitive in a cut-throat market where clients are demanding 20-30% price reductions," Fersht said.

The decision by TCS, considering its culture of being a stable place to work, highlights this sectoral trend, he added.

(Reporting by Haripriya Suresh
Editing by David Goodman)

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BENGALURU, July 23 (Reuters) - India's Infosys INFY.NS narrowed its forecast for the current fiscal year on Wednesday, after posting bigger-than-expected first-quarter revenue on a boost from Europe market.

The Bengaluru-based firm changed its annual forecast to 1%-3% from the flat-to-up-3% range announced in the previous quarter.

Analysts were largely expecting the firm to lift the bottom end of the range to 1%.

The company's consolidated sales rose 7.5% year-on-year to 422.79 billion rupees ($4.89 billion) in the June quarter.

Analysts, on average, expected 418.06 billion rupees, as per data compiled by LSEG.

($1 = 86.3880 Indian rupees)

(Reporting by Sai Ishwarbharath B ; Editing by Nivedita Bhattacharjee )

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Adds analysts comments in paragraph 7 and 8, stock details in paragraph 3

July 18 (Reuters) - India's Wipro WIPR.NS rose as much as 4% on Friday after the country's fourth-largest IT firm reported better-than-expected quarterly earnings, driven by improved client spending in segments of its Americas business.

At least six brokerages upgraded Wipro's stock after the company posted a 0.8% rise in first-quarter revenue and an 11% jump in net profit, both topping analysts' average estimates, according to LSEG data.

Data also showed that at least 10 brokerages raised their price targets on the stock, which was the top gainer on the benchmark Nifty 50 index and the IT index .NIFTYIT early on Friday. The blue-chip index and the IT index were both down 0.6% and 0.2%, respectively.

India's fourth-largest IT company said it expects revenue for the September quarter to be in the range of $2.56 billion and $2.61 billion, ranging between a drop of 1% and a rise of 1%, in line with what analysts were expecting.

Analysts at Morgan Stanley said strong large deal wins at Wipro "bode well" for growth in the second half of the fiscal year, while those at Investec said deal wins were the "big highlight of the quarter," and were the highest in more-than 13 quarters.

Wipro's deal wins rose to $5 billion in the quarter, up from $3.3 billion a year earlier.

"More importantly, these large deals are concentrated among Wipro's top clients, which implies greater wallet share," Morgan Stanley analysts said in a note.

Wipro's quarterly performance stood in contrast to rivals Tata Consultancy Services TCS.NS and HCLTech HCLT.NS, which reported weaker revenue for the same period.

TCS and Infosys INFY.NS shares were up 0.1%, while HCLTech shares were down 0.8% on Friday.

(Reporting by Manvi Pant; Editing by Chandini Monnappa and Nivedita Bhattacharjee)

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BENGALURU, July 16 (Reuters) - India's Tech Mahindra TEML.NS reported a marginally lower-than-expected first-quarter revenue on Wednesday as clients tightened non-essential spending amid tariff-related uncertainty.

Consolidated sales at India's fifth largest IT services firm by revenue rose 2.7% year-on-year to 133.51 billion rupees ($1.55 billion) in the June quarter.

Analysts, on average, expected 133.83 billion rupees, as per data compiled by LSEG.

($1 = 85.9340 Indian rupees)

(Reporting by Sai Ishwarbharath B and Haripriya Suresh; Editing by Janane Venkatraman )

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** India's information technology index .NIFTYIT is set to clock losses of about 4% this week, on track for worst in more than three months

** Index underperforms benchmark Nifty 50 .NSEI, which is down 1% for the week

** Weak Q1 earnings from bellwether Tata Consultancy Services TCS.NS and U.S. President Donald Trump's tariffs weigh on stocks

** J.P. Morgan says there could be negative takeaways for peers Infosys INFY.NS, HCL Technologies HCLT.NS and Wipro WIPR.NS from TCS earnings as the weakness was broad-based across industries and geographies likely due to trade uncertainties

** TCS and Tech Mahindra TEML.NS down about 4% each for the week, while HCLT slides 5%

** INFY and WIPR down 3.1% and 4.4% for the week, respectively

** YTD, NIFTYIT down 13% vs Nifty 50's 6.4% rise, falls 1.8% on Friday

(Reporting by Vivek Kumar M)

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July 10 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS Q1 ORDER BOOK AT $9.4 BILLION

• TCS - CONTINUED GLOBAL MACRO-ECONOMIC, GEO-POLITICAL UNCERTAINTIES CAUSED A DEMAND CONTRACTION

Source text: [ID:]

Further company coverage: TCS.NS

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BENGALURU, June 20 (Reuters) - Software services firm Cognizant Technology Solutions CTSH.O will invest 15.82 billion rupees ($182.76 million) to build a new campus in south Indian city of Vishakapatanam that will create about 8,000 jobs, the state government announced on Friday.

Commercial operations will begin in March 2029, an Andhra Pradesh government press release said.

Cognizant did not immediately respond to a request for comment.

The announcement comes just months after India's top IT firm, Tata Consultancy Services TCS.NS, unveiled plans for 13.70 billion rupee campus in the same city, and is expected generate 12,000 jobs.

The move aligns with Cognizant’s strategy to optimise real estate costs. In May 2023, Chief Executive Ravi Kumar S said the company would relinquish 11 million square feet of office space globally, mainly in India’s largest cities, while investing in tier-2 Indian cities.

Globally, IT companies, including those in India’s $283 billion sector, are taking cost-cutting measures such as monetising real estate assets and delaying wage increases amid demand uncertainty.

Last month, the Teaneck, New Jersey-based company raised its annual revenue forecast and beat first-quarter results driven by increased demand for AI-powered IT services.

Cognizant expects 2025 annual revenue between $20.5 billion and $21.0 billion, compared to previous outlook of the midpoint of $20.30 billion to $20.80 billion.

($1 = 86.5625 Indian rupees)

(Reporting by Sai Ishwarbharath B and Haripriya Suresh; Editing by Tasim Zahid)

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June 19 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS INDEPENDENT DIRECTOR MISTRY: MARKS AND SPENCER INCIDENT UNDER REVIEW, UNDER INVESTIGATION BY CUSTOMER

• TCS INDEPENDENT DIRECTOR MISTRY: NO TCS SYSTEMS, USERS WERE COMPROMISED, NONE OF OUR OTHER CUSTOMERS IMPACTED

• TCS INDEPENDENT DIRECTOR MISTRY: PURVIEW OF MARKS AND SPENCER INCIDENT INVESTIGATION DOES NOT INCLUDE CO

• TCS INDEPENDENT DIRECTOR MISTRY SPEAKING AT COMPANY AGM

Further company coverage: TCS.NS

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Updates shares in paragraph 4, adds RBA comment in paragraph 9

By Byron Kaye

SYDNEY, June 16 (Reuters) - Australia's corporate regulator said it had launched a broad investigation into the country's main stock exchange operator, escalating tensions that have simmered for years amid a botched software upgrade and a series of trade-processing glitches.

The Australian Securities and Investments Commission (ASIC) said on Monday that it and the Reserve Bank of Australia (RBA), the exchange's joint regulators, held ongoing concerns about the ability of ASX ASX.AX to maintain stable, secure and resilient critical market infrastructure.

ASIC was already reviewing a December 2024 malfunction of ASX's settlement technology. But the regulator said it would cancel that project and order an expert panel to investigate the "governance, capability and risk management frameworks and practices across the group".

Shares of ASX were down 7% in afternoon trading, their biggest intraday fall in a year, against a flat overall market .AXJO, as the company's relationship with regulators deteriorated further after years of rebukes.

ASIC Chair Joe Longo did not specify what prompted the ratcheting up of scrutiny except to say in a statement that "the decision to initiate an inquiry follows repeated and serious failures at ASX".

The regulator would publish the investigation's findings, although the timing was still to be decided, ASIC added.

ASX said it acknowledged the seriousness and significance of ASIC's investigation and that it was cooperating with the regulator.

"We have been working hard on a transformation strategy ... but we acknowledge there have been incidents that have damaged trust in ASX," ASX Chairman David Clarke said.

The RBA declined to comment.

ASX, which processes most of Australia's stock trades and runs all of its clearing and settlement services, experienced the first of a series of technical glitches that resulted in a near full-day outage in the heightened trading volume of 2020, sparking an ASIC probe at the time.

ASX meanwhile frustrated market participants - and ultimately ASIC and RBA - with an ambitious, ultimately disastrous, attempt to rebuild its clearing and settlement software platform with custom blockchain-like technology from 2017.

After delays, expenses and mandatory industry consultations, ASX abandoned the project in 2022, and the following year it hired India's Tata Consultancy Services TCS.NS to start afresh on a staged upgrade. The first part is due to be delivered in 2026, ASX has said.

(Reporting by Byron Kaye in Sydney and Rajasik Mukherjee in Bengaluru; Editing by Sonali Paul, Sherry Jacob-Phillips and Jamie Freed)

(([email protected]; +612 9171 7541; signal: byronkaye.01))

June 3 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• VIRGIN ATLANTIC AND TCS EXTEND TWO-DECADE PARTNERSHIP

• PARTNERSHIP TO MODERNIZE AIRLINE OPERATIONS WITH AI-LED SOLUTIONS

Source text: ID:nnAZN3XJP2Q

Further company coverage: TCS.NS

(([email protected];;))

By Haripriya Suresh and Sai Ishwarbharath B

BENGALURU, June 2 (Reuters) - Infosys INFY.NS CEO Salil Parekh's compensation rose 21.7% to 806.2 million rupees ($9.44 million), the company said in its annual report on Monday, making him one of the highest-paid Indian IT chiefs currently in office.

Parekh, the longest-serving non-founder CEO at the IT company, earned a fixed salary of 79.4 million rupees and bonuses of 231.8 million rupees.

The largest portion, 495 million rupees, resulted from the chief executive of India's No. 2 IT services firm exercising his stock options.

In comparison, Parekh earned $7.9 million in 2024 and $6.76 million in 2023, with the rise in pay, mainly due to a greater number of stock options exercised during the year.

For the financial year 2025, Infosys reported a revenue growth of 4.2% in constant currency terms, falling short of its forecast of 4.5%-5%. For the current fiscal year, it forecast a flat to 3% growth in revenue, signalling a weaker business environment.

India's $283-billion IT sector is facing another year of slowing growth, partly due to the U.S. tariff policies, which complicate forecasting market conditions in key markets and client segments.

"Majority of Infosys revenue is from the U.S. and other global markets. The compensation is in line and consistent with what companies of this scale and size pay globally. Boards of Indian tech companies are indeed aware and need their leaders to be retained and paid appropriately in this challenging environment," said K Sudarshan, managing director at executive search firm EMA Partners.

K Krithivasan, CEO of Infosys' larger rival Tata Consultancy Services TCS.NS earned $3.11 million, and smaller rival Wipro's WIPR.NS CEO Srinivas Pallia earned $6.28 million, according to their latest annual report.

Infosys is one of the two among India's top five IT companies that have retained their CEO at the helm over the last 18–24 months, with HCLTech being the other.

($1 = 85.3600 Indian rupees)

(Reporting by Haripriya Suresh and Sai Ishwarbharath B; Editing by Tasim Zhaid)

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

By Shritama Bose

MUMBAI, May 29 (Reuters Breakingviews) - India’s largest-ever private credit deal is a prime example of investors having capital burning a hole in their pockets. Struggling conglomerate Shapoorji Pallonji Group has just sold a 298 billion rupees ($3.5 billion) bond to a group including BlackRock BLK.N, Ares ARES.N and Pimco. Lending to financially challenged companies is where the fast-growing industry cut its teeth. But with around a quarter of assets in private credit providers’ portfolios sitting idle, per BNP Paribas, the hoops all sides are jumping through to get this deal done smacks of desperation.

For starters, it’s a zero-coupon bond, meaning the issuer pays no interest. That’s useful for SP Group. Granted, operating profit at the group's flagship company covers twice its interest bill for the six months to the end of September. That’s a big improvement from four years ago, per rating agency ICRA. But last year, the state-backed Power Finance Corporation declined its borrowing request, and rates on another unit's bonds rose after it missed deadlines for asset sales.

The bondholders make their money – a 19.75% yield – by buying the debt at a discount to face value and holding it until it matures in three years’ time. They don’t seem overly confident the borrower will stay out of trouble, as the terms include not one, not two, but three different layers of protection.

First, SP Group must pay back part of the debt if it sells certain assets. Second, its real estate business is providing a 100% guarantee on the paper. Even that’s not enough. As a third level of defence for its creditors, the issuer has agreed to stump up as collateral 9% of Tata Sons, around half its holdings in the company which owns large stakes in Tata Consultancy Services TCS.NS, Tata Motors TAMO.NS and more.

That pledged chunk could be worth between $8 billion and almost $19 billion, based on research by analysts at wealth manager Spark last year that factors in how much of a discount is applied to the unlisted company’s various public investments.

Trouble is, it’s not certain that Pimco and partners, which also include Farallon Capital Management and Deutsche Bank DBKGn.DE, would be able to get their hands on SP Group’s portion: Tata Trusts, which is Tata Sons’ controlling shareholder, insists the stock is not "freely transferable". Despite their evident trepidation at SP Group's ability to repay them, the bondholders will be hoping they won’t need to put that to the test.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Indian conglomerate Shapoorji Pallonji Group has issued an unrated and unlisted 298 billion rupees ($3.5 billion) three-year zero-coupon bond to companies including BlackRock, Pimco, Davidson Kempner Capital Management, Farallon Capital Management, Ares Management and Deutsche Bank, which also arranged the deal.

The deal offers a yield of 19.75% by being priced at a discount to face value. It is the largest private credit transaction in India, IFR reported on May 16, citing market sources.

(Editing by Antony Currie; Production by Ujjaini Dutta)

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

May 21 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• RECEIVES 29.03 BILLION RUPEES ORDER FROM BSNL FOR 4G NETWORK

Source text: ID:nBSE2K2Ths

Further company coverage: TCS.NS

(([email protected];;))

BENGALURU, April 23 (Reuters) - India's No.6 software services exporter LTIMindtree LTIM.NS on Wednesday marginally missed quarterly earnings estimates due to a revenue decline in its healthcare and consumer segments.

The company posted consolidated revenue of 97.72 billion rupees ($1.14 billion) for the quarter ended March 31, up 10% year-on-year, but below the analysts' average estimate of 98.57 billion rupees, according to LSEG data.

Its peers, Tata Consultancy Services TCS.NS and Infosys INFY.NS, have previously flagged a difficult year ahead, as global economic uncertainty and cautious client spending further impact the sector.

The Indian IT sector, valued at $283 billion, is facing challenges due to U.S. President Donald Trump's unpredictable tariff policies, which are causing uncertainty and delays in technology spending decisions among its major clients.

Indian IT companies expect retail and manufacturing clients to be more exposed to the tariff turmoil and may resort to cost-cutting if uncertainty persists.

The company's quarterly profit rose 2.5% to 11.29 billion rupees, while analysts, on average, were expecting a profit of 11.58 billion rupees.

Revenue at its healthcare and consumer verticals fell during the quarter by 16.2% and 1.9%, respectively. Its largest vertical, banking, financial services and insurance, grew 12%.

LTIMindtree's revenue from North America, which accounts for nearly 75% of its total, grew 6.8%, whereas its Europe market declined 1.5%.

"Our key verticals and a major geography drove our yearly growth despite an ongoing challenging macro environment," said Debashis Chatterjee, CEO, in a statement.

Its deal wins stood at $1.6 billion versus $1.68 billion in the previous quarter and $1.43 billion in the year-ago period.

The company's shares closed 5% higher ahead of the results.

($1 = 85.3880 Indian rupees)

(Reporting by Haripriya Suresh and Sai Ishwarbharath B; Editing by Vijay Kishore)

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Recasts throughout, adds analyst and CEO comments

By Sai Ishwarbharath B and Haripriya Suresh

BENGALURU, April 22 (Reuters) - HCLTech HCLT.NS, India's third-largest IT services company, posted slightly lower-than-estimated fourth-quarter revenue on Tuesday, but projected growth opportunities to emerge from the global macro overhang.

The company expects "large opportunities" as clients use generative AI and other technologies to reduce costs in the tariff-driven environment, CEO C Vijayakumar said in a post-earnings conference.

"As I look beyond the uncertain short-term, I strongly believe there will be strong growth opportunities emerging out of the market," he said.

However, HCLTech expects the tariff-led turmoil to impact retail and manufacturing verticals and spill over to the other segments after fully kicking in.

The company's consolidated revenue rose 6.1% to 302.46 billion rupees ($3.6 billion) in the fourth fiscal quarter. Analysts on average expected revenue of 302.75 billion rupees, according to data compiled by LSEG.

It expects revenue growth to be in the range of 2% to 5% for fiscal 2026 that started on April 1.

"The street expectations on HCLTech's guidance were really low after Infosys' tepid number last week. HCLTech has delivered guidance (that) looks the best among peers in a conservative environment overall," said Piyush Pandey, lead IT analyst at Centrum Broking.

Industry leader Tata Consultancy Services TCS.NS missed its quarterly earnings estimates and warned about clients delaying decision-making in discretionary projects. Larger peer Infosys INFY.NS has forecast flat to 3% revenue growth for fiscal year 2026.

HCLTech's quarterly net profit rose 8.1% to 43.07 billion rupees, compared with analysts' mean estimate of 43.56 billion rupees.

Deal wins for the quarter stood at $3 billion, compared with $2.1 billion a year ago.

Four of the company's seven segments grew during the quarter, with the telecom and media vertical expanding by 24.3%.

HCLTech shares closed 0.1% lower on Tuesday while the sub-index of IT stocks .NIFTYIT that ended 0.57% lower that day.

($1 = 85.1710 Indian rupees)

(Reporting by Sai Ishwarbharath B; Editing by Mrigank Dhaniwala and Shreya Biswas)

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Adds share move, analyst and CEO commentary in paragraphs 3-6

By Haripriya Suresh and Sai Ishwarbharath B

BENGALURU, April 17 (Reuters) - Infosys INFY.NS on Thursday forecast weaker-than-expected revenue growth for fiscal 2026, becoming the latest Indian IT firm to signal a tough year ahead as global economic uncertainty, tariff disruptions and cautious client spending weigh on the sector's outlook.

India's second-largest software services exporter said it expects revenue for fiscal 2026 to be flat to up 3%, while analysts were expecting a 2%–4% rise.

That sent U.S.-listed shares of the company down 3% in premarket trading.

Chief Executive Salil Parekh said on a conference call Infosys was starting to see some impact on consumer products due to broader macroeconomic challenges and flagged an "uncertain" environment, echoing sentiments from rivals Tata Consultancy Services TCS.NS and Wipro WIPR.NS.

"The first quarter is looking soft for all IT companies... For the sector, recovery has been pushed back by 4–5 months," said Piyush Pandey, lead IT analyst at Centrum Broking.

Infosys' forecast adds to mounting concerns facing India's $283 billion IT sector, which was already wrestling with subdued demand and delays in deal closures.

The company's revenue forecast suggests a quarterly run-rate of 0.5%–1.7% over the next year, analysts at Jefferies said, calling it "optimistic at the higher end."

Several other analysts said they expect Bengaluru-based Infosys to be more vulnerable to tariff-related uncertainty than its peers, given its heavier reliance on manufacturing and retail — its second and third-largest revenue drivers.

Revenue for the reported quarter rose 7.9% to 409.25 billion rupees ($4.79 billion) year-on-year, missing analyst estimates of 420.73 billion rupees, according to data compiled by LSEG.

Quarterly net profit fell 11.8% to 70.33 billion rupees, compared with analysts’ mean estimate of 66.95 billion rupees.

($1 = 85.3630 Indian rupees)

(Reporting by Haripriya Suresh and Sai Ishwarbharath B; Editing by Nivedita Bhattacharjee)

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Adds CEO comments from press conference, share price change from paragraph 3

By Sai Ishwarbharath B and Haripriya Suresh

BENGALURU, April 16 (Reuters) - Wipro WIPR.NS on Wednesday forecast a sequential decline in first-quarter revenue, joining bigger rival TCS TCS.NS in flagging demand uncertainties across India's $283 billion IT sector as shifting tariffs upend global industries and client decision-making.

U.S.-listed shares of India's fourth-largest IT services firm fell 5% at $2.71 in premarket trading after the company said it expects revenue in the April–June quarter to fall between 1.5% and 3.5%.

Wipro and other Indian IT companies have boosted revenue in the past decades by deploying engineers for tasks from app development to cybersecurity, but growth has slowed in recent years as more clients establish local operations to handle tech work in-house.

"Going from FY25 to FY26, the uncertainties have dramatically increased," chief executive CEO Srini Pallia said in a post-earnings conference, adding that the automotive and industrial segments were "really impacted" due to the U.S. tariff-related flip-flops.

Trump’s 25% automotive import tariffs took effect on April 3, causing shock waves across the industry since supplies come from all over the world.

Wipro, which counts Volkswagen VOWG.DE and Yamaha 7951.T as clients, saw revenue from its energy resources and manufacturing segment fall 7% in the quarter.

Industry leader TCS missed fourth-quarter earnings estimates last week and warned about clients delaying decision-making in discretionary projects.

Wipro's consolidated revenue rose 1.3% to 225.04 billion rupees ($2.63 billion) in the quarter-ended March, but missed analyst estimates of 226.21 billion rupees, as per data compiled by LSEG. Net profit rose 26% to 35.7 billion rupees.

Mumbai-based brokerage firm Dolat Capital had expected Wipro's June-quarter revenue to range from a 1% drop to 1% growth, said analyst Rahul Jain.

Revenue in three out of the company's five verticals fell during the quarter, while deal wins stood at $4 billion, compared to $3.61 billion last year.

Wipro said its deal pipeline across U.S. and Europe was expected to be strong in the medium term despite the macro overhang.

India's second-largest IT firm Infosys INFY.NS reports results on Thursday while third-largest firm HCLTech HCLT.NS will report next week.

($1 = 85.6410 Indian rupees)

(Reporting by Sai Ishwarbharath B; Editing by Nivedita Bhattacharjee)

By Haripriya Suresh and Sai Ishwarbharath B

BENGALURU, April 13 (Reuters) - Clients of India's Tata Consultancy Services TCS.NS in the retail, travel and automobile sectors are more exposed to fallout from U.S. tariffs and they may resort to cost-cutting if uncertainty persists, the company's CEO told Reuters.

The banking and financial services sector - which makes up nearly a third of revenue for India's biggest software exporter - remains unaffected, TCS top boss K Krithivasan said in an interview.

The global trade war and U.S. President Donald Trump's back-and-forth on tariffs have made it difficult to forecast market conditions, making businesses hesitant about signing off on big spending decisions.

"The consumer business, hospitality business, travel, auto industry are the businesses that we have to watch out for. If the uncertainty continues for longer, those businesses may have to focus more on cost optimisation, but at this time, I have not heard anything," Krithivasan said.

Retail and manufacturing are the company's second- and fourth- largest revenue contributors, while banking remains the largest.

TCS earns roughly half of its revenue from North America, a crucial market for Indian IT service providers that are exposed to the tariff fallout through their U.S. clients.

The company missed fourth-quarter earnings estimates on Thursday and warned about clients delaying decision-making in discretionary projects.

TCS, however, expects the uncertainty to be "shortlived".

Krithivasan maintained he expects fiscal year 2026 to be better than 2025, as there were still legacy software and systems clients may have to replace in the medium- to long-term.

TCS also said a trend of clients consolidating their IT vendors has helped the company gain market share.

"Particularly when customers look at cost optimization as a key focus area, they will try to reduce the number of service providers. TCS has been a beneficiary of these consolidations that have happened in FY25," Krithivasan said.

(Reporting by Haripriya Suresh and Sai Ishwarbharath B; Editing by Devika Syamnath)

(([email protected];))

** Software-services exporter Tata Consultancy Services TCS.NS reported weaker-than-expected quarterly results on Thursday and also warned that uncertainty around U.S. tariffs was prompting clients to rethink discretionary projects

** Shares up 0.4% at 3,260 rupees in a volatile session on Friday, fluctuating between gains and losses

** Earlier in the session, stock dropped 1.1% in an upbeat broader market

SHORT-TERM DEMAND CHALLENGING; UNCONVINCED ON FY26 EXPECTATION

** Jefferies ("hold": PT 3,400 rupees) says growing pressures on discretionary IT spends, delays in decision-making likely to limit growth, margin expansion

** Nuvama ("buy": 4,050 rupees) expects demand environment to remain challenging for next 1-2 quarters due to macro uncertainty; but remain positive on medium-to-long term outlook as technology debt continues to be very high for enterprise

** Ambit Capital ("sell": PT 3,140 rupees) remains unconvinced on co expectations of FY26 being better than FY25, given co will have to grow at a steep 1.7% per quarter, compared with just 0.5–0.6% in FY24/25

** BOBCAPS ("hold": PT 3,072 rupees) says weak start for co in FY26 likely; profitability to improve in FY26 since low-margin BSNL deal shrinks

(Reporting by Aleef Jahan in Bengaluru)

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April 10 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TATA CONSULTANCY SERVICES LTD - APPOINTS AARTHI SUBRAMANIAN AS EXECUTIVE DIRECTOR, PRESIDENT AND COO

Source text: ID:nBSE3qGdkQ

Further company coverage: TCS.NS

(([email protected];;))

Corrects syntax in paragraph 1

By Haripriya Suresh

BENGALURU, April 4 (Reuters) - India's $283-billion IT sector should brace for a rough year ahead as tariffs are likely to stoke inflation in its key U.S. market and force clients to cut spending, analysts said.

Although President Donald Trump did not impose direct tariffs on IT services, Indian firms are expected to feel the heat as clients, especially in manufacturing, logistics and retail sectors, adjust to the new levies.

That could slow deal cycles, delay existing projects and hurt revenue growth, analysts said. Bernstein and ICICI Securities rushed to cut their ratings on the Indian IT sector soon after the tariff announcement.

The tariffs come at a time the sector was counting on Trump to revive client confidence and discretionary spending after years of weak revenue growth.

The U.S. accounts for more than half of India's $190 billion software exports, making the sector sensitive to shifts in spending confidence among businesses in the world's largest economy. J.P.Morgan on Friday lifted global and U.S. recession odds to 60% after Trump's tariff announcement.

"With a rising risk of U.S. recession and uncertain decision-making, we think chances of fiscal 2026 being a complete washout are rising," J.P. Morgan said in a note on Friday, without giving specific numbers.

At least six analysts expect Indian IT firms to issue a "conservative" annual revenue growth forecast when quarterly results start next week.

Companies with a greater exposure to discretionary spending are expected to bear the brunt of any tariff-fueled slowdown.

"Discretionary IT spend will likely see an impact across the industry verticals. Companies to get impacted will typically be the high-growth companies in the large caps and some of the mid-caps where the exposure usually is much higher on the discretionary side," BNP Paribas analyst Kumar Rakesh said.

He added the impact of a potential slowdown could be apparent by the September quarter.

India's Nifty IT index .NIFTYIT fell 3.6% on Friday to take its losses for the week to 9.15%, the steepest weekly fall for the index in more than five years.

(Reporting by Haripriya Suresh; Editing by Dhanya Skariachan, Sonia Cheema and Saumyadeb Chakrabarty)

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By Haripriya Suresh and Bharath Rajeswaran

BENGALURU, March 21 (Reuters) - India's information technology companies, among the worst-performing sectors this year, may not see a recovery in fiscal 2026, analysts said, after Accenture ACN.N flagged weak discretionary spending and demand in its quarterly report.

Accenture, the world's largest IT services player and a bellwether for the Indian IT industry, warned on Thursday that spending on discretionary projects in the quarter "was still constrained" and flagged no meaningful increase in client budgets.

Escalating global trade tensions following fresh U.S. tariffs on trading partners has sparked concerns over a slowdown in the United States - a key market for Indian IT companies.

"Whatever has happened in the last two months has created a higher level of uncertainty in terms of how the first half of fiscal 2026 will pan out and what impact it will have on the FY26 recovery rate," Amit Chandra, deputy vice president at HDFC Securities, told Reuters.

India's IT index is currently down 15.3% so far this year and is set for its worst quarter since June 2022. Top firms such as TCS TCS.NS, Wipro WIPR.NS, Infosys INFY.NS and HCLTech HCLT.NS lost between 11.2% and 18.1% this year.

Analysts at Kotak Institutional Equities said softening demand recovery and weak mega deal flow in fiscal 2025 will result in lower incremental revenue from mega deals in fiscal 2026 for Indian Tier-1 IT. "Companies will also face net headwinds from early stages of gen AI adoption," they said.

Citi Research has estimated that IT companies in its coverage could see revenue growth of 4% in fiscal 2026, similar to fiscal 2025, while Morgan Stanley expects growth assumption to be hurt due to subdued client spending.

According to Chandra, while banking, financial services, and insurance (BFSI) and healthcare verticals showed signs of recovery, the last two months' uncertainty has meant that clients across sectors are "going into a wait-and-watch mode", and can likely curtail spends.

Accenture also largely flagged delays and cancellations of new contracts in the U.S. due to the Trump administration's moves. However, while "Indian IT has limited exposure," according to Citi analysts, this can "increase competitive intensity in other segments".

(Reporting by Haripriya Suresh and Bharath Rajeswaran in Bengaluru; Editing by Janane Venkatraman)

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March 20 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS PARTNERS WITH THE CUMBERLAND BUILDING SOCIETY

  
  

Source text: ID:nnAZN3L2Y4T

Further company coverage: TCS.NS

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March 19 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS PARTNERS WITH AIR NEW ZEALAND

• SIGNS FIVE-YEAR PARTNERSHIP WITH AIR NEW ZEALAND

• PARTNERSHIP TO ENHANCE AIR NEW ZEALAND'S DIGITAL CAPABILITIES

Source text: ID:nBSE4xz7cf

Further company coverage: TCS.NS

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March 12 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS EXTENDS PARTNERSHIP WITH COOP DANMARK

• EXTENDED PARTNERSHIP TO SUPPORT CORE BUSINESS SYSTEM

Source text: [ID:]

Further company coverage: TCS.NS

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March 11 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• ANNOUNCES ACQUISITION OF DARSHITA SOUTHERN INDIA HAPPY HOMES

• ACQUISITION COST 22.50 BILLION RUPEES FOR 100% EQUITY SHARES

Source text: ID:nBSEb4V6Lj

Further company coverage: TCS.NS

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March 6 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TATA CONSULTANCY SERVICES LTD - NORTHERN TRUST EXPANDS COLLABORATION WITH TCS

• TATA CONSULTANCY SERVICES LTD - TO DEPLOY BANCSTM PLATFORM FOR NORTHERN TRUST

Source text: ID:nBSE9fxXsB

Further company coverage: TCS.NS

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March 5 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS - TCS PARTNERS WITH VANTAGE TOWERS

• TCS- PARTNERS WITH VANTAGE TOWERS

Source text: [ID:]

Further company coverage: TCS.NS

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Feb 28 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS - TCS EXTENDS PARTNERSHIP WITH DNB BANK ASA BY 5 YEARS FOR NEXT-GEN BANKING

Further company coverage: TCS.NS

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Adds details

By Sai Ishwarbharath B and Haripriya Suresh

MUMBAI, Feb 24 (Reuters) - India's technology sector is expected to grow at a higher pace this fiscal year, driven by engineering research and development and the rising number of global capacity centres (GCC), or low-cost offshore hubs, industry body Nasscom said on Monday.

Nasscom expects the industry's revenue will grow 5.1% to $282.6 billion in fiscal 2025, compared with the previous fiscal's 4%, with revenue crossing $300 billion in fiscal 2026.

Software exports, comprising services and sale of products to clients, are expected to grow 4.6% to $224.4 billion in fiscal year 2025, the industry body said.

The sector is expected to add 126,000 jobs on a net basis, taking the total workforce to 5.8 million in fiscal year 2025, it added.

The industry's total headcount rose to 5.67 million in fiscal 2024 from 5.58 million a year earlier.

"Enhanced artificial intelligence implementation, the rise of Agentic AI, and the growing maturity of GCCs as value hubs are reshaping industry dynamics," said Sindhu Gangadharan, Chairperson, Nasscom.

Top Indian IT service providers such as Tata Consultancy Services TCS.NS, Infosys INFY.NS and HCLTech < HCLT.NS> have highlighted early signs of discretionary spending picking up and an improvement in the demand environment after a tepid 2024, in which growth nearly halved as clients held back spending and delayed decision making.

Agentic AI is considered the next frontier in artificial intelligence, allowing the system to operate autonomously and perform tasks on behalf of users through 'AI agents'.

AI's emergence has threatened to disrupt business models for Indian IT companies that largely serve clients in the United States for operations support, providing software as a service.

"The intersection of technology, geopolitics, and trade demands a bold response and enterprises must prioritise workforce tech transformation, build digital trust, and foster resilience to drive sustainable growth," Gangadharan said.

(Writing by Sethuraman NR; Editing by Janane Venkatraman)

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