TCS

** TCS TCS.NS, India's top software services exporter, up 9% this week

** Co on track for best week in nearly six years

** Stock, which is down more than 30% so far this year, has shown some signs of recovery in July

** Co posted quarterly revenue last week on strong banking demand, rising AI revenue

** Analysts note revenue growth in coming quarters, led by AI revenue; prospects for grown in BFSI, high-tech and regional markets

** On the day, stock up 2.8% to 2,262.4 rupees in lighter-than-usual trading

** More than 2.6 mln shares change hands vs 30-day avg of 5.1 mln shares

** Stock top gainer on IT index .NIFTYIT on Friday, among top gainers on benchmark Nifty 50 .NSEI

** Avg rating of 43 analysts is "buy"; median PT is 2,400 rupees - LSEG data

(Reporting by Abinaya V in Bengaluru)

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July 16 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS - CO AND GOOGLE CLOUD LAUNCH GEMINI EXPERIENCE CENTER IN KOLKATA

• TCS - BY END OF 2026, PLANS TO ESTABLISH TOTAL OF 10 GECS GLOBALLY, INCLUDING FOUR IN INDIA

Source text: ID:nBSE15x2Fn

Further company coverage: TCS.NS

(([email protected];))

July 15 (Reuters) - NVIDIA Corp NVDA.O:

• TCS - LAUNCHES INDUSTRIAL AI SOLUTIONS LAB IN BENGALURU POWERED BY NVIDIA

Source text: ID:nBSEbk81Nz

Further company coverage: NVDA.O

(([email protected];))

By Ira Dugal

July 14 - Foreign investors are embracing the Indian bonds with uncommon enthusiasm, even as they remain wary of the nation's stocks. The resulting drop in borrowing costs is delivering immediate benefits for the government and economy, but are risks waiting in the wings? That's our focus this week. Share your views with me at [email protected].

Also, quarterly earnings from India's largest IT company bring relief to beaten-down tech stocks. Scroll down for that. And, catch the best of Reuters reporting on India in our 'must-reads' section.

THIS WEEK IN ASIA

• Japan pension pivot seen as a slow burn, not a bond market fire sale

• How the absence of Iran's new supreme leader is becoming a liability for the Islamic Republic

• China lifts fuel export curbs for July, sources say

• Bangladesh's Hasina plans December return with party colleagues to surrender

BONDS GET A VOTE OF CONFIDENCE

While Indian equity markets have struggled to draw foreign investor interest over the past year, the country's bonds are enjoying a moment in the spotlight.

A confluence of factors has led to nearly $6.5 billion in foreign investment into government securities since the start of June - a month which saw record inflows, pulling down the benchmark 10-year bond yield by about 25 basis points to 6.73%, close to the levels seen before the Iran war began.

A relatively dovish central bank, lower taxes for foreign investors and a dollar deposit scheme targeting the Indian diaspora are all playing a part.

"The relative stability in the rupee after the central bank's steps aimed at drawing dollar flows has also been a key positive for bond investors," said Vivek Kumar, an economist at QuantEco Research.

Additionally, some front-running of the potential inclusion of Indian sovereign debt in Bloomberg's flagship Global Aggregate Index could be driving demand, said Abhishek Upadhyay, co-head of economic and fixed income research at Mumbai-based ICICI Securities Primary Dealership.

"It has been a beautiful set-up for anyone considering allocation to Indian government bonds," he said.

COULD BOND BULLS TURN VIGILANTES?

The inflows have given foreigners increasing clout in a market that the government historically has carefully controlled.

Overseas ownership of bonds in a category called "fully accessible route (FAR)" climbed to 7%, Reuters' Dharamraj Dhutia reported. FAR bonds, introduced in 2020, have no foreign investment restrictions and are now part of three global bond indices, buffing their attractiveness to foreign investors.

Prior to 2020, India had tightly limited overseas investment in government debt, even though equity markets were fully open. The worry was that foreign ownership might spur volatility in borrowing costs across the economy, acting as a constraint on policymakers.

For instance, bond vigilantes — investors who demand higher yields when they perceive fiscal risks — could complicate the pursuit of spending priorities such as strategic energy reserves. Yields rise when bonds sell off.

India could eventually become more susceptible to such pressures, but those risks remain limited for now, said Upadhyay.

"Foreign ownership of Indian government bonds is still low, while domestic banks and insurers continue to provide a stable source of demand because of regulatory requirements," he said.

Banks are required to hold 18% of their deposits in government bonds, while investment guidelines for insurance companies also require large holdings of these securities.

India's 7% foreign ownership is lower than countries like Malaysia and Indonesia, where overseas investors own about 22% and 14% of government debt, respectively.

And QuantEco's Kumar noted that much of the investment has come from funds tracking global bond indices, suggesting the inflows could prove sticky.

"These are largely passive investors and they typically don't swing positions very sharply due to near-term macroeconomic developments as their holdings are linked to an index weight," he said.

MARKET MATTERS

After a sharp fall since the start of the year for technology stocks, earnings from Tata Consultancy Services TCS.NS for the June quarter beat market expectations, bringing some relief to the sector.

Strong banking demand and rising AI revenue helped India's largest IT services firm beat revenue estimates. Company executives told Reuters' Sai Ishwarbharath B and Haripriya Suresh that it is scouting for acquisitions in the AI space to boost revenue further. Read more here.

THIS WEEK'S MUST-READS

• India is holding out for a better trade deal with the U.S. as Prime Minister Narendra Modi draws confidence from new trading partners and a relatively resilient economy, Shivangi Acharya, Manoj Kumar and Trevor Hunnicutt reported.

• India's National Stock Exchange (NSE) will pitch its IPO to over 30 global investors this month as a bet on the country's rapid financial expansion and growing capital-market participation, Jayshree Upadhyay reported.

• An Indian investigation found duty-free shops run by billionaire Gautam Adani's business group at Mumbai international airport breached the law by selling nicotine pouches, Aditya Kalra reported. Adani denies wrongdoing. The Indian government is seeking to throw out a court challenge mounted by the Adani group.

(Reporting by Ira Dugal; Editing by Kevin Buckland)

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Adds share price reaction in fourth bullet point

BENGALURU, July 13 (Reuters) - Tata Consultancy Services TCS.NS has secured a multi-million contract from Swiss-Swedish industrial technology firm ABB ABBN.S, India's top software services firm said on Monday.

Here are some details:

• TCS will design and run ABB's global network ecosystem as an AI-driven service and secure its infrastructure through cybersecurity offerings.

• The Indian firm did not provide details including financials and the duration of the deal.

• The contract is an extension of a 20-year partnership between the companies, where TCS had previously consolidated multiple accounting software into a single SAP platform for ABB.

• TCS shares were up 5.5% at 2,182 rupees as of 14:23 p.m. IST

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

((mailto: [email protected]))

By Sai Ishwarbharath B and Haripriya Suresh

BENGALURU, July 12 (Reuters) - Tata Consultancy Services TCS.NS is building a team of up to 8,900 forward-deployed engineers and hunting for AI acquisitions as it bets artificial intelligence will create new business rather than undermine outsourcing, two TCS executives told Reuters.

The strategy emerges amid investor concern that AI could disrupt India's $315 billion IT services industry by reducing demand for engineering teams, shortening project timelines and squeezing prices as clients seek a share of productivity gains.

"We would be ... ensuring that we have as many as 1% to 1.5% of our associates who could be what you would call FDEs," CEO K Krithivasan said in an interview. TCS TCS.NS is India's largest software services firm.

Krithivasan's figures would translate to roughly 5,900 to 8,900 employees based on TCS's end-June headcount. Krithivasan did not say whether the company would hire externally or retrain existing staff.

Forward-deployed engineers embed with clients to accelerate AI adoption and tailor tools to business needs, a role that has emerged as a hiring bright spot in a sector grappling with AI-driven efficiency gains.

The plan pits TCS against firms such as OpenAI, Anthropic and Microsoft MSFT.O, which have expanded hiring for forward-deployed engineers to help clients deploy AI tools.

The Mumbai-based company is also evaluating acquisitions in AI, data security and cybersecurity, after largely shunning acquisitions for years and relying instead on organic growth until late 2025.

"We are looking at where we can find things which will help us enable or enhance our strategic positioning," CFO Samir Seksaria said.

AI: FRIEND OR FOE?

Krithivasan dismissed concerns that AI would disrupt the outsourcing model, arguing that companies still need partners such as TCS to integrate and deploy AI systems.

"What you need is a deep knowledge of the customer environment to make it work. That is where we differentiate ourselves. This has nothing to do with cost arbitrage. It's essentially because of the talent pool that we have built," Krithivasan said.

Companies increasingly use multiple AI models and require partners such as TCS to connect those models with existing systems and manage data flows, he said.

Even so, TCS's annualised AI revenue growth slowed to 13% in the first quarter from 28% in the previous quarter. Krithivasan said he would like the business to grow about 25% quarter-on-quarter over the long term but that he did not expect a linear trajectory.

TCS spends about $1 billion annually on talent development and making AI accessible internally, with a focus on training, targeted hiring and niche recruitment in AI-native technologies, Seksaria said.

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

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

By Ujjaini Dutta

BENGALURU, July 10 (Reuters Breakingviews) - Tata Consultancy Services TCS.NS shares have been battered by fears that coding tools from Anthropic and others will make it redundant, but the $78 billion IT services giant had plenty of good news to offer on Thursday when it reported better-than-expected quarterly earnings. Unhelpfully, the bespoke metric it created to flaunt the firm's tech credentials is sending a less optimistic signal.

The Indian company’s topline returned to growth on Thursday, buoyed by higher spending from banking clients and a weak rupee. Revenue stood at 723 billion rupees ($7.6 billion) in the quarter ended June 2026, up 14% year-on-year and 2.7% in constant currency terms. Its deal pipeline ticked up slightly to $9.5 billion after the company won an $800 million AI-led business transformation pact with European manufacturing giant SKF SKFb.ST, insurer Canada Life and Norwegian packaging firm Elopak ELO.OL.

This, as CEO K Krithivasan suggested on a post-earnings call, hints that AI deflation may not be as bad as many feared. Asked by analysts about the likely impact of higher spending by global companies on AI tokens, he said most enterprises will use multiple large language models and that the complex architecture involved could result in more work for IT firms.

Such optimism is reinforced by a surprise uptick in hiring. Tata Consultancy added ⁠around 9,300 employees, its fastest quarterly pace in more than three years, including AI-native engineers who can be deployed immediately on client projects. That's a striking contrast with one month ago when Chair N Chandrasekaran, who also leads the holding company of the wider Tata group, said AI would slow industry hiring and predicted AI agents' numbers would soon match the company's workforce. The apparent contradiction mattered little to investors: shares rose 3% in early trading on Friday.

Yet one figure which the company only started disclosing in December gives pause. The company's so-called annualised AI services revenue, which includes AI for business transformation and modernisation work, reached just $2.6 billion for the period. That was up 13% from the previous quarter but a sharp slowdown from the 28% pace it logged in March. Management blamed lumpy deal timing, noting that AI projects last only one or two quarters and then need to be won again, unlike traditional services deals with recurring revenue. It's a reminder that, for IT giants, future growth may be less predictable in the agentic era.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

Tata Consultancy Services on July 9 reported revenue of 723 billion rupees ($7.58 billion) in the quarter ended June 2026, up 14% year-on-year and 2.7% in constant currency terms.

The Indian IT firm's order book stood ​at $9.5 billion, down from $12 billion in the March quarter.

Annualised AI services revenue, a figure the company started disclosing in December, rose 13% quarter-on-quarter to $2.6 billion, slower than the 28% growth in the prior three months.

Tata Consultancy added ⁠around 9,300 employees, its fastest quarterly pace in more than three years. Asked by analysts about the likely impact of higher spend on AI tokens, CEO K Krithivasan said most enterprises will use multiple large language models, which will result in bigger roles for IT firms.

(Editing by Una Galani; Production by Aditya Srivastav)

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

Adds CEO comment from analyst call in paragraph 4

By Sai Ishwarbharath B and Haripriya Suresh

BENGALURU, July 9 (Reuters) - Tata Consultancy Services TCS.NS, India's top software services exporter, beat quarterly revenue estimates on Thursday, helped by higher spending by banking clients and a weak rupee.

The results kick-start the first-quarter earnings season for the $315-billion Indian IT sector. Analysts have lowered their expectations for the industry as global clients cut back on non-essential tech spending and on worries that advanced AI tools could disrupt business models of software companies.

The fears have wiped out $100 billion in market capitalisation of India's Nifty IT .NIFTYIT constituents since February.

On a post-earnings call, TCS CEO K Krithivasan said he was "optimistic" of a turnaround in tech spending among manufacturing and life sciences clients in the second quarter, while a revival in consumer businesses depended on geopolitics.

Consolidated sales jumped 14% year-over-year to 722.75 billion rupees ($7.58 billion) in the three months ended June. That compares with analysts' average estimate of 720.30 billion rupees, according to data compiled by LSEG.

Two mega-deal wins in the banking, financial services and insurance sector last fiscal boosted revenue, with sales from the key business vertical rising 2.4% during the quarter.

A weaker rupee also boosted revenue at IT firms as they bill clients in foreign currencies and incur most costs in rupees.

TCS added around 9,300 employees in the quarter, its highest in more than three years, even as concerns about job losses from increasing adoption of AI tools persisted.

"This is a marginally better performance from TCS in terms of deal wins, revenue than what we expected and they have also restarted hiring," said Anshul Jethi, analyst at LKP Securities.

"But we need to wait and watch if this is a turnaround or one-off case amid the geopolitical roller-coaster still hurting sentiments."

The IT firm's order book shrank to $9.5 billion from $12 billion in the previous three months, despite deals with European manufacturing giant SKF SKFb.ST, insurer Canada Life and Norwegian packaging firm Elopak ELO.OL.

TCS said its annualised AI revenue crossed $2.6 billion, driven by faster deployments across industries, rising from $2.3 billion in the previous quarter.

Its net profit rose 4.6% to 133.49 billion rupees despite a one-time charge related to a settlement of an IP-theft case involving DXC Technology DXC.N.

TCS' Mumbai-listed shares closed 0.4% lower ahead of the results.

($1 = 95.3875 Indian rupees)

(Reporting by Sai Ishwarbharath B and Haripriya Suresh in Bengaluru; Editing by Nivedita Bhattacharjee, Mrigank Dhaniwala and Shilpi Majumdar)

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By Haripriya Suresh and Bharath Rajeswaran

BENGALURU, July 6 (Reuters) - India's top information technology companies are expected to report another subdued quarter, as AI-driven pricing pressure, weak client spending, and global geopolitical turmoil continue to weigh on growth, nine brokerages said.

The April-to-June quarter is usually a strong one for India's $315 billion IT sector, helped by higher billing days and new project starts, but analysts expect a slow start to the fiscal year that would push back hopes of a recovery.

India's largest IT services company, Tata Consultancy Services TCS.NS, kicks off earnings on Thursday with peers Infosys INFY.NS, HCLTech HCLT.NS and Wipro WIPR.NS reporting later this month.

While India's top six IT firms are expected to report around 14% year-on-year revenue growth in rupee terms with net profit rising 12%-13%, this would largely be due to the impact of sharp rupee depreciation. Stripping out exchange rate effects, the companies are expected to post a mere 2.8% revenue growth in constant-currency terms.

Citi expects a fourth straight year of subdued growth for Indian IT firms, while JPMorgan sees revenue growth staying below 3%-4% for the "foreseeable future".

The IT sector is racing to adapt to changing customer needs as companies across the globe step up the use of AI tools and agents to cut costs and quicken software development cycles.

Software firms have slowed hiring, with TCS Chairman N Chandrasekaran saying the "day is not far" when the company would have an equal number of AI agents and employees.

Indian IT firms are in a "perfect storm," Nomura said in its earnings preview, with Middle East conflict-led uncertainty compounding AI-driven pricing pressure.

Fears that AI would disrupt the IT sector's traditional, labour-intensive business model dragged the Nifty IT index .NIFTYIT down 9.5% in the June quarter even as India's benchmark Nifty 50 .NSEI gained 6.9%.

The IT index has slumped about 28% so far in 2026, making it the worst-performing major sector in India.

The impact of AI-led disruption and weakness in client spending will be broad-based, according to PL Capital, with effects visible in the consumer, hi-tech, and telecom verticals.

"Slower decision-making and elongated sales cycle are leading to delays in revenue conversion and execution," the brokerage said in a note.

Annual revenue forecasts will be a key focus for investors. Brokerages say Infosys and HCLTech could narrow or trim the upper end of their forecasts.

Potentially higher interest rates in the U.S., which makes up about 60% of Indian IT firms' revenue, also loom.

(Reporting by Haripriya Suresh and Bharath Rajeswaran in Bengaluru; Editing by Mrigank Dhaniwala)

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BENGALURU, July 3 - Hiring for AI roles within India's IT sector outpaced overall recruitment within the industry last month, a survey showed on Friday, indicating a push from companies to reorient themselves in the face of evolving technology.

The sector's AI hiring rose 16% year-on-year in June, while overall IT jobs declined 3%, according to job portal Naukri's monthly JobSpeak report that collated job listings from more than 150,000 firms on its website.

India's $315 billion IT industry has been under pressure with clients holding back on spending on technology due to a weak macroeconomic environment and the advent of AI that threatens their traditional business model.

"The divergence (between AI and overall IT hiring) is important because it shows where tech companies are still investing. AI is increasingly becoming a core capability area, especially as demand shifts towards more senior and specialised talent," said Hitesh Oberoi, CEO at Info Edge INED.NS, which owns Naukri.

The country's No.1 software exporter, Tata Consultancy Services TCS.NS, last month said it expects IT companies to slow down hiring, with the Tata Group firm moving towards ​having an equal number of employees and AI agents in its workforce.

Last July, the firm cut more than 12,000 jobs, while headcount fell by more than 23,000 on a net ​basis in the fiscal year ended March 2026.

Across 14 sectors, AI and machine learning jobs increased 25%, the report added. The insurance and consumer goods sector showed the most increase in job hiring during the period, it said.

(Reporting by Sai Ishwarbharath B in Bengaluru;)

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June 23 (Reuters) - DXC Technology Co DXC.N:

• DXC COLLECTS $213,560,494.98 IN LANDMARK IP THEFT CASE FROM TCS

Source text: ID:nPn8WbHLka

Further company coverage: DXC.N

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Recasts story with analyst commentary, details and background

BENGALURU, June 19 (Reuters) - India's Nifty IT index .NIFTYIT fell to a three-year low on Friday after bellwether Accenture ACN.N forecast quarterly ​sales below Wall Street view, cut its annual revenue outlook and reported softer bookings in its managed services business.

Shares of Indian IT companies, including TCS TCS.NS, Infosys INFY.NS, and HCLTech HCLT.NS fell 4% to 8% after Accenture flagged deal delays and a $400 million hit to its Middle East business from the Iran conflict.

India's $315 billion IT sector faces concerns that AI could disrupt its labour-intensive model, while geopolitical and economic ​uncertainty weighs on demand as ​clients defer non-essential tech spending.

Analysts see a negative read-through for Indian IT, with Morgan Stanley saying investors had already priced in a weak start to fiscal 2027 but expect an improvement in the September quarter.

"However, with this commentary from Accenture, we think hopes of any meaningful improvement in growth in 2Q could start fading away," the note said.

Indian IT firms have limited direct exposure to the Middle East, said Pritesh Thakkar, equity analyst at PL Capital, but face indirect risks from delay in deal closures, slower project ramp-ups and prolonged decision cycles.

Accenture's forecast follows hawkish U.S. Federal Reserve commentary that has fuelled expectations of a September rate hike. Higher rates could dampen appetite for emerging markets and weigh on overseas spending, a risk for Indian IT firms with significant U.S. exposure.

Mayuresh Joshi, head of equity research at investment advisory firm William O'Neil & Co, told Reuters that the market is looking for growth, which is "clearly missing", even though existing order books support current revenues.

"In terms of what these hyperscalers and platform companies are doing and implementing across enterprise value chains, they'll (Indian IT companies) have to get their act together very fast, both in terms of organic and inorganic."

India's IT stocks have slid about 29% so far this year, making them the worst-performing sector, versus an 8.3% drop in the benchmark Nifty 50 .NSEI.

(Reporting by Haripriya Suresh in Bengaluru; Editing by Sherry Jacob-Phillips)

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

By Ujjaini Dutta

BENGALURU, June 17 (Reuters Breakingviews) - HCLTech’s HCLT.NS decision to lead a fundraising round for India’s sovereign AI posterchild is both timely and shrewd. The $32 billion IT services firm's 10% stake in Sarvam, valuing the startup at $1.5 billion, is small enough to limit any risk yet showy enough to deflect mounting criticism that the world's back office is underinvesting as AI eats away at its revenue.

To be sure, Sarvam, founded by Vivek Raghavan and Pratyush Kumar, is not a neat fit for its newest big backer. The barely three-year-old startup's large language model is optimised for Indic languages but HCL's client base is largely outside the country, mostly in the United States and Europe: India accounted for just 3% of HCLTech's annual sales in the year to the end of March 2026.

And while the IT industry's decades-long success is often attributed to New Delhi staying out of the way, Sarvam is at the heart of the government's IndiaAI Mission. Through that initiative, the startup has secured financial and compute support, including subsidised access to Nvidia's NVDA.O graphics processing chips.

Of course, taking a stake in India's sovereign AI champion could unlock more domestic deals for the C Vijayakumar-led company with Indian enterprises. And it might also get early access to Sarvam's latest tech, as Microsoft MSFT.O did through its investment in OpenAI, though the company run by Satya Nadella also bagged a huge customer for its Azure cloud business.

The political returns for HCL at least appear more certain. Washington's order for Anthropic to suspend access for non-U.S. residents to its Fable 5 and Mythos 5 models will only deepen the desire of governments around the world to find their own sovereign AI solutions across compute infrastructure, AI models and user-facing AI software. That will require oodles of capital.

HCL's rivals such as Wipro WIPR.NS and Infosys INFY.NS are attempting to counter AI deflation on their revenues in other ways. Tata Consultancy Services TCS.NS, for example, is investing in a data centre. Backing Sarvam is, for now, less expensive and probably more politically savvy. They may be tempted to pile in too.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

HCLTech will acquire a 10.5% stake in Sarvam AI for ‌14.27 billion rupees ($150.7 million) in cash, the Indian IT services company said in a stock exchange filing on June 15. HCL co-led the fundraising round with Bessemer Venture Partners. It also included existing investors Khosla Ventures and Peak XV Partners.

The investment will allow the Indian IT services company to develop specific language models and AI solutions for its global client base and accelerate the development of sovereign AI solutions for governments and regulated industries, HCLTech said.

Sarvam was valued at $1.5 billion in the round, which raised $234 million in its first close out of a targeted $300 million. The AI startup is backed by India's government AI Mission.

(Editing by Una Galani; Production by Aditya Srivastav)

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

June 16 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS - US SUPREME COURT DENIES TCS PETITION IN DXC TECHNOLOGY CASE ON JUNE 15, 2026

• TCS - TO BOOK $70 MILLION ONE-TIME EXCEPTIONAL EXPENSE IN Q1 FY2027

Source text: ID:nBSE8J3MPM

Further company coverage: TCS.NS

(([email protected];))

By Blake Brittain

WASHINGTON, June 15 (Reuters) - The U.S. Supreme Court turned away on Monday a bid by India-based Tata Consultancy Services TCS.NS to overturn a $168 million award won against it by DXC Technology DXC.N for allegedly stealing trade secrets related to life-insurance software.

Tata had appealed after a lower court upheld a judge's decision to set the award at $56 million in compensatory damages and $112 million in punitive damages to Ashburn, Virginia-based DXC. Tata had argued that the damages award could not be justified under U.S. law regarding trade secrets.

DXC's predecessor Computer Sciences Corp, or CSC, licensed its software to insurance company Transamerica in the 1990s. Its 2019 lawsuit, filed in Dallas federal court, said that Tata hired 2,200 Transamerica employees and used their access to CSC's software and knowledge of its proprietary information to build a competing life-insurance platform.

Tata denied the allegations, told the court that the information at issue was not secret and argued that it accessed the software legally.

A jury in 2023 decided in an advisory verdict - a nonbinding decision given to a judge - that Tata should pay DXC $210 million for willfully stealing its trade secrets. U.S. District Judge Brantley Starr reduced the proposed damages award to $168 million in 2024. The New Orleans-based 5th U.S. Circuit Court of Appeals upheld Starr's decision in 2025.

U.S. law concerning trade secrets allows for monetary damages to address both a plaintiff's losses from the theft of trade secrets and a defendant's "unjust enrichment" from it. The award to DXC was based entirely on unjust enrichment.

Tata told the Supreme Court in a filing that DXC should not have won unjust enrichment damages without proving it suffered actual losses as well. Tata also argued that the punitive damages award was excessive.

DXC responded that "nothing about the court of appeals' fact-bound application of settled law warrants further review."

(Reporting by Blake Brittain; Editing by Will Dunham)

(([email protected]; 332.219.1428 ; 646.407.9441 mobile;))

June 12 (Reuters) - Anthropic:

• ANTHROPIC: TCS AND ANTHROPIC PARTNER TO BRING CLAUDE TO REGULATED INDUSTRIES - WEBSITE

(([email protected];;))

June 11 (Reuters) - India's top IT firm Tata Consultancy Services TCS.NS said on Thursday it has partnered with Anthropic to launch an alliance to drive enterprise AI scaling.

(Reporting by Urvi Dugar in Bengaluru; Editing by Mrigank Dhaniwala)

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June 9 (Reuters) -

• INDIA'S TCS EXEC- AI-DRIVEN REVENUE IS SIGNIFICANT, EXPECT IT TO GROW 100% YOY IN ANNUALISED BASIS

• TCS EXEC: 100% OF OUR REVENUE WILL HAVE AI COMPONENT BY 2028-30

• TCS EXEC: CO WILL HAVE EQUAL NUMBER OF AI AGENTS AND EMPLOYEES SOON

• TCS EXEC: CO, IT INDUSTRY WILL NOT HIRE SAME NO. OF WORKERS IT USED TO HIRE PREVIOUSLY DUE TO AGENTS

• INDIA'S TCS EXEC: PRELIMINARY REPORT IN NASIK HARASSMENT CASE SHOWS WE DID NOT RECEIVE ANY FORMAL COMPLAINTS

• TCS EXEC: NO PLAN OF DOWNSIZING OF STAFF, ONLY RATE OF HIRING WILL SLOW DOWN

• TCS EXEC: AI WORLD WILL PRODUCE NEW OPPORTUNITIES FOR HIRING ONCE AI TRANSITION COMPLETE

• TCS EXEC: EXPECT U.S. BUSINESS TO PICK UP DUE TO AI, SEE NO VISA-RELATED ISSUES

Source text: [ID:]

Further company coverage: TCS.NS

(([email protected];;))

June 8 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS - LAUNCHES DEDICATED BUSINESS UNIT TO HELP ENTERPRISES BUILD AI-NATIVE GLOBAL CAPABILITY CENTRES

Source text: ID:nBSE5Kqyd3

Further company coverage: TCS.NS

(([email protected];;))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Updates to add graphic.

By Shritama Bose

MUMBAI, June 4 (Reuters Breakingviews) - Finding a good job in India is going to get a lot harder. Headcount growth at its biggest private company, $190 billion Reliance Industries RELI.NS, is slowing sharply as an investment binge fades. But a chronic skills shortage also gives businesses a strong incentive to rapidly adopt artificial intelligence. That will turn today's hiring squeeze into a deeper, structural slump.

The energy-to-retail giant's over 419,000 headcount as of March 2026 represents 4% year-on-year growth, just one quarter of its expansion rate the previous year. Its disclosures have turned hazier too: last year Reliance discontinued a table in its annual report offering a detailed breakdown of employees across business divisions.

The hiring slowdown is partly explained by the end of a phase of higher recruitment for its fledgling renewable energy business. But the growth remains well below India's 7%-plus GDP growth—and the squeeze could soon become entrenched: Reliance says it is "building talent fluent in leveraging AI to enhance decision-making, productivity and purpose-driven work", implying that the impact of AI on hiring will become clearer next year.

The problem is pronounced at IT outsourcers like $85 billion Tata Consultancy Services TCS.NS, the country's second-largest company by market capitalisation, and Infosys INFY.NS, where the number of employees is now up to 5% below their respective March 2023 peaks, thanks to a slowdown in revenue growth and rise of new coding tools.

Indeed, future job growth is a bigger worry than headline-grabbing layoffs, as the government's Chief Economic Advisor V. Anantha Nageswaran warned in February. His call on the private sector to hire more and balance capital-intensive growth with labor-intensive growth has gone unanswered by industry titans. Urban youth unemployment is as high as 13.6% and it's common for college graduates to queue up for janitorial roles in the public sector.

The danger is employers – who have long complained that India's 600 million-strong workforce does not have the modern skills required for the service-oriented economy – will turn to AI as a quick fix and adopt new technologies faster. Some 65% of respondents to a World Economic Forum survey saw a skills gap in India as a challenge to business transformation, and more than one-third of them expected talent availability to worsen over the five years to 2030. Indian employers plan to outpace global adoption in computing technologies, quantum and encryption to transform their businesses, according to the WEF's Future of Jobs report for 2025.

It all threatens to tip India Inc's hiring slump into a depression.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Reliance Industries' group headcount stood at over 419,000 at the end of March 31, 2026, the company said in its annual report for the year. The total number of employees increased by around 4% year-on-year, slower than a 16% rate of expansion in the previous financial year.

(Editing by Una Galani; Production by Ujjaini Dutta)

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June 3 (Reuters) - India's information technology stocks were headed for their biggest single-day drop in over four months on Wednesday as investors assessed the impact of AI on demand for traditional software services.

The IT index .NIFTYIT was down 5.8% at 29,310.25 points. If losses hold, this would be its worst day since February 4.

India's largest software exporter Tata Consultancy Services TCS.NS slumped 9% and led losses, while Bengaluru-based Infosys INFY.NS and Wipro WIPR.NS dropped 4.3% and 3.7%, respectively.

(Reporting by Vivek Kumar M; Editing by Sonia Cheema)

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

By Shritama Bose

MUMBAI, June 2 (Reuters Breakingviews) - Forcing an initial public offering of the Tata conglomerate's holding company would be a clumsy application of rules designed to reduce shadow banking risks. It could also sting the Indian government as it would curb the financial flexibility of the $270 billion cars-to-chips group when New Delhi most needs agility from its corporate behemoths.

A listing risk has hung over Tata Sons since 2021, when the Reserve Bank of India refreshed its rulebook, following the collapse of Infrastructure Leasing & Financial Services, a major non-bank lender. The RBI enhanced capital requirements for large shadow banks and mandated listings to increase transparency. Tata Sons is registered as a core investment company, which the RBI counts as a category of shadow banks.

Tata Sons has since taken extensive steps to address potential risks. Last year it completed a $13 billion IPO of Tata Capital TATC.NS, a small non-bank financial company; cut its quasi-lending exposure by reducing the value of so-called “letters of comfort” issued to subsidiaries’ creditors by 60% in the two years to March 31, 2025; and moved from a net debt to net cash position as of March 2024. Yet the RBI’s latest update implies Tata Sons will still need to list after July 1.

The latest pushback comes from Noel Tata, chair of Tata Trusts which owns 66% of Tata Sons. He's written to the RBI saying a listing would shift the holding company’s priorities from long-term institution-building to catering to shorter-term market expectations, Moneycontrol reported on June 1, citing people familiar with the matter.

That's a real risk; Tata's big bet on building an indigenous chip industry may not have materialised if Tata Sons was a public company. What's more, a Tata Sons IPO would not significantly increase transparency. Most of its large investments already trade as public companies, including $85 billion Tata Consultancy Services TCS.NS, $38 billion Titan TITN.NS and $15 billion Tata Motors TAMO.NS.

But a forced IPO would crystallise a huge conglomerate discount. For investors, owning a holding company is usually less attractive than buying listed subsidiaries that provide direct exposure to a desired industry. In Asia, these discounts can be as high as 50%: Tata Sons held assets worth an estimated 1.75 trillion rupees ($18.42 billion) as of March 2025.

To be sure, Tata Sons has its problems. Minority shareholder Shapoorji Pallonji Group wants liquidity for its 18% stake and skirmishes among Tata Sons board members have intensified since the death of Ratan Tata, the group's chair emeritus. The RBI diktat is making matters worse.

New Delhi may also stand to lose from broadening out Tata Sons' shareholder base. The group's 2022 purchase of Air India, the bleeding national carrier that has lurched from crisis to crisis, would have been hard to justify to external investors. On balance, an IPO would enforce rules to the letter but achieve little else.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Tata Trusts Chair Noel Tata has written to the Reserve Bank of India opposing any potential listing of Tata Sons, news website Moneycontrol reported on June 1, citing unnamed people directly aware of the matter. He argued that going public could alter the long-term character of the Tata group’s holding company and disrupt the philanthropic objectives of the Trusts, the report added.

The RBI on April 29 expanded the definition of 'public funds' in its regulations for non-banking financial companies. The updated rules state that investment companies that have access to public funds indirectly through group entities or associates will not be exempted from the requirement to go public if they hold assets worth at least 1 trillion rupees ($10.5 billion).

The rules will come into effect on July 1.

(Editing by Una Galani; Production by Ujjaini Dutta)

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THE AI EXCEPTION: CHINA AND INDIA DEFY EM PRIVATE MARKET SLOWDOWN

Most emerging markets saw private investment pull back in the first quarter of the year, but China and India stood apart - riding a wave of enthusiasm for AI, according to data from the Global Private Capital Association (GPCA).

Despite private capital investment across EMs (excluding South Korea) falling to $33.9 billion in Q1 from $48.25 billion a year ago, venture investment emerged as a bright spot, jumping to $15.2 billion - the highest since Q4 2022.

The rebound was driven by China, where deal value hit $9 billion, a multi-year high. Notably, 60% of that capital was deployed to AI, robotics and biotech, data showed.

A near-record $5 billion was deployed to digital infrastructure deals. Among the largest: India's HyperVault - a joint venture between Tata Consultancy Services TCS.NS and private equity firm TPG TPG.O to develop data centers, backed by roughly $2.03 billion in equity - and Bharti Airtel-owned BRTI.NS Nxtra Data, which raised $1 billion from a group of investors.

"There is a durable long-run opportunity in markets outside the U.S., where persistent gaps in digital and energy infrastructure will serve pent-up demand from businesses and consumers for basic services – before you even get to AI anticipation," said Cate Ambrose, CEO of GPCA.

Private investment sentiment took a hit earlier this year after the collapse of several companies including U.S. auto parts supplier First Brands and British lender Market Financial Solutions - stoking broader concerns over the health of private markets.

But investor appetite for AI and AI-adjacent companies has proved resilient, with capital chasing almost anything remotely connected to the technology.

Outside Asia, PE firm Warburg Pincus plans to invest up to $1 billion in Brazil's Global Eggs.

(Purvi Agarwal)

*****

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May 26 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS - LAUNCHES SOVEREIGNSECURE CLOUD IN EUROPE

Source text: ID:nBSE796SJJ

Further company coverage: TCS.NS

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By Aditya Soni and Abhirami G

May 19 (Reuters) - Microsoft's MSFT.O biggest data center in India is on track to open by mid-2026, its country head said on Tuesday, as the tech giant spends heavily to bolster its position in one of the world's largest markets for artificial intelligence services.

There's "massive demand" for Azure cloud services and the $30-a-month Copilot 365 AI assistant in the country, Puneet Chandok, president, Microsoft India and South Asia, told Reuters.

Like rivals Alphabet GOOGL.O and Amazon AMZN.O, Microsoft sees India as a potentially profitable market for AI thanks to its more than 1 billion internet users and deep tech talent.

Tapping that market is crucial as it looks to prove to investors that its massive bet on AI will pay off.

The company announced late last year that it would invest $17.5 billion in India, its biggest outlay in Asia, on top of the $3 billion pledged at the start of 2025.

That includes a new data center in the southern tech hub of Hyderabad, where Microsoft already has a significant presence.

"We are the ones who are bringing this to life quickly, the fastest out of the gates," Chandok said of the company's data center build-out, adding that the Hyderabad facility would be its biggest in India without disclosing exact capacity.

The new capacity will serve a growing customer base for AI services in India. Microsoft counts IT giants Infosys INFY.NS, Cognizant CTSH.O and Tata Consultancy Services TCS.NS among Copilot customers, with about 50,000 licenses each.

Chandok also said the India operations are contributing to AI features Microsoft is rolling out globally. The company employs more than 22,000 people in the country across cities.

Hiring staff to develop the features is getting tougher as demand exceeds supply, causing a "war for talent," Chandok said.

"The challenges in India are the same as everywhere else in the world."

(Reporting by Aditya Soni and Abhirami G in Bengaluru; Editing by Anil D'Silva)

(([email protected];))

Updates with statement from Tata Trusts in 4th bullet

By Jayshree P Upadhyay

MUMBAI, May 15 (Reuters) - India's Maharashtra state charity commissioner has ordered Tata Trusts to defer its Saturday board meeting after complaints triggered an inquiry into the trusts' governance.

• Tata Trusts holds a controlling stake in the holding company of the Tata Group, Tata Sons, which faces pressure to list.

• The trusts have been told not to hold the meeting until an inspector completes a probe and submits a report.

• The order, seen by Reuters, follows complaints over trust composition. One of the complainants is Venu Srinivasan, a senior trustee at Tata Trusts, the charity commissioner's order said.

• In a late-night statement, Tata Trusts said that directions from the authorities are being examined and that it was not aware of any complaint filed by Srinivasan.

(Reporting by Jayshree P Upadhyay in Mumbai, Writing by Anna Peverieri in Barcelona; Editing by Shinjini Ganguli and Muralikumar Anantharaman)

(([email protected];))

By Jayshree P Upadhyay

MUMBAI, May 15 (Reuters) - India's Maharashtra charity commissioner has ordered Tata Trusts to defer its Saturday board meeting after complaints triggered an inquiry into the trusts' governance.

• Tata Trusts holds a controlling stake in the holding company of the Tata Group, Tata Sons, which faces pressure to list.

• The trusts have been told not to hold the meeting until an inspector completes a probe and submits a report.

• The order follows complaints over trust composition. One of the complainants is Venu Srinivasan, a senior trustee at Tata Trusts.

  
  

(Reporting by Jayshree P Upadhyay in Mumbai, Writing by Anna Peverieri in Barcelona; Editing by Shinjini Ganguli)

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The hosts are Reuters Breakingviews columnists. The opinions expressed are their own.

By Aimee Donnellan and Una Galani

DUBLIN/HONG KONG, May 14 (Reuters Breakingviews) - Follow on Apple or Spotify. Listen on the Reuters app. Read the episode transcript.

Listen to the podcast

The country’s $4 trln consumer-led economy is already seeing a slowdown in hiring and firms like Oracle are laying off staff. In this Viewsroom podcast, Breakingviews columnists explain why India is so vulnerable and how the situation may play out elsewhere.

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FURTHER READING

AI job shock risks throttling India’s consumption

Poll wins spotlight India’s next spending crisis

India IT needs new model to code past AI crunch

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(Editing by Sheryl Peña and Gregory Garner; Production by Aditya Srivastav)

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Refiles to fix grammatical error in the first paragraph.

By Shritama Bose

MUMBAI, May 13 (Reuters Breakingviews) - No people whose word for 'yesterday' is the same as their word for 'tomorrow' can be said to have a firm grip on the time, Salman Rushdie once wrote in a friendly dig at Indians in reference to the Hindi language. Yet by urging fellow citizens to stay home, shun gold purchases, halve fertiliser use, and skip overseas travel including destination weddings, Prime Minister Narendra Modi is deliberately playing catch-up and being pre-emptive at once.

The Indian leader's dramatic appeal, made first on Sunday and repeated a day later, marks a belated shift into austerity mode. In countries from Pakistan to Thailand remote-working mandates and fuel rationing kicked in within weeks of war breaking out in the Middle East. New Delhi held off but things are abruptly changing following the conclusion of key state elections that underscored Modi's popularity.

It paints a picture of crisis management seemingly incongruous with India's comfortable foreign exchange reserves relative to historical levels: the central bank's $691 billion warchest is equivalent to 11 months of imports, higher than the 2013 level of under seven months.

The sense of premature panic is reinforced by movements at the central bank. It is also mulling reviving a scheme for India's diaspora to open foreign currency deposits rolled out in 2013 when the taper tantrum sparked huge capital flows out of India, Reuters reported citing unnamed sources. Another measure could be to ease the tax burden on foreign buyers of Indian bonds, the report added.

New Delhi may be acting early precisely to avoid a repeat of past crises. That's sensible. Another reason to look sharp is that usable reserves adjusted for the Reserve Bank of India's net short position in the currency forwards market are lower, sufficing for imports for just under nine months, analysts at UBS estimate. And a growing share of those reserves are attributable to gold, less useful in a quick pinch than hard currency.

Modi's call to action may also betray a fear about how quickly advances in artificial intelligence may crush India's $418 billion of services exports, much of it linked to outsourcers' earnings. Tata Consultancy Services TCS.NS reported a rare drop in U.S. dollar revenue for the last financial year as coding tools by Anthropic and others compress growth across the industry.

Throw in record portfolio outflows, muted net foreign direct investment and a potential fall in remittances from the Gulf - home to some 10 million Indian workers - and the South Asian country looks caught in a perfect storm that could ruin its external balances and macro-economic stability. The rupee has lost over 6% of its value against the U.S. dollar this year.

Modi's appeal risks further cooling sentiment toward India and, if ineffective, may be a precursor to more extreme steps, such as a tightening of a $250,000 limit on overseas spending or an outright ban on imports of gold and electronics, goods which New Delhi sees as 'non-essential'. For now, India's leader is just asking.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

India is considering emergency steps to shore up foreign exchange reserves, including curbing non-essential imports like gold and electronic goods, and hiking fuel prices, to help cushion the economy from the fallout of the Iran war, Bloomberg reported on May 11, citing unnamed people familiar with the matter.

Indian ​Prime Minister Narendra Modi on May 10 urged a ‌spate of measures including fuel conservation, work-from-home practices and limits on travel and imports, as a surge in global energy ​prices puts pressure on the country's foreign exchange ​reserves.

"In the current situation, we must place great emphasis on saving foreign exchange," he said. Modi asked Indians to ⁠avoid buying gold and to cut non-essential ​overseas travel for at least a year while urging farmers to cut fertiliser ​use by as much as half.

The Reserve Bank of India is studying ways to mobilise dollar inflows to bolster its foreign exchange buffers and cushion rising pressure on the rupee from a spike in oil prices driven by the Iran war, Reuters reported on May 4, citing three unnamed sources familiar with the discussions.

Reviving a mechanism to draw in dollar deposits from non-resident Indians and removing withholding tax on overseas government bond investors are among the measures being considered, the report added.

(Editing by Una Galani; Production by Aditya Srivastav)

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Adds details on sector paragraph 2 onwards

May 12 (Reuters) - India's IT shares fell to a three-year low on Tuesday as investor jitters around the threat posed by artificial intelligence to flagship IT firms flared up again, after OpenAI announced a new AI venture.

The Nifty IT index .NIFTYIT fell 3.6% to its lowest since May 2023, with Tata Consultancy Services TCS.NS, Infosys INFY.NS, HCL Technologies HCLT.NS and Wipro WIPR.NS falling between 2.5% and 4%.

Analysts at HSBC said in a Tuesday note that India's top-tier IT firms largely failed to meet street expectations for earnings in March quarter as well as in their outlooks for the new financial year, adding that strong spending globally on AI could be "crowding out" demand for traditional IT services.

HSBC's warning comes a day after OpenAI said it is launching a new company backed by more than $4 billion, embedding engineers into organizations to identify where AI can make the most impact. It's the latest challenge to Indian IT firms' business model from a major AI company targeting enterprise clients.

Indian IT stocks are unlikely to attract positive investor interest unless global AI activity, cloud capex growth and cloud revenue momentum slow, HSBC said.

Indian IT companies derive a significant share of their revenue from North America and are considered sensitive to U.S. economic uncertainty and corporate technology spending trends.

The industry has been under pressure for much of 2026, starting with a February rout after the roll-out of Anthropic's Claude Code and on fears rapid advances in generative AI would disrupt demand for traditional IT and professional services.

India's IT stocks have slid 25.4% so far this year, making them India's worst-performing sector, compared with a 9.7% drop in the benchmark Nifty 50 .NSEI.

March quarter results have done little to soothe investor worries. Dollar revenue at industry bellwether Tata Consultancy Services TCS.NS shrank 0.5% year-on-year to $30 billion for the year ended March - the first decline since the company's 2004 IPO.

Industry peers have flagged challenges of meeting targets with limited visibility on demand: HCL Tech's CEO C Vijayakumar said in the company's post-earnings investor call it took "25%-30% more effort to convert and get to the same number" in terms of total contract value.

The broader Indian market remained under pressure on Tuesday, with the rupee sliding to a record low on elevated crude oil prices with talks to end the U.S.-Israeli war with Iran finding no success.

(Reporting by Chandini Monnappa, Surbhi Misra and Pranav Kashyap in Bengaluru; Editing by Ronojoy Mazumdar)

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