TCS
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** TCS TCS.NS falls 1% to 2,038 rupees
** Analysts, on avg, expect India's top software services exporter to post 13.6% Y/Y rev growth in Q1 - LSEG-compiled data
** BofA and UBS flag continued weakness from the Middle East and softer discretionary spending
** UBS also points to deal deferrals and delayed client decisions
** TCS kickstarts Q1 earnings for Indian IT; peers Infosys INFY.NS, Wipro WIPR.NS and HCLTech HCLT.NS report later this month
** Jefferies expects deal wins to remain steady at $9 billion to $10 billion, says it is not enough to materially improve near-term growth
** Co's commentary will be more important than reported numbers, with investors focused on demand trends, BFSI spending and FY27 growth outlook, Jefferies and JP Morgan say
** Avg rating of 43 analysts on TCS is "buy"; median PT is 2,655 rupees
* YTD, stock down 35.6% vs IT index's .NIFTYIT 28.4% drop and Nifty 50's .NSEI
(Reporting by Kashish Tandon in Bengaluru)
** TCS TCS.NS falls 1% to 2,038 rupees
** Analysts, on avg, expect India's top software services exporter to post 13.6% Y/Y rev growth in Q1 - LSEG-compiled data
** BofA and UBS flag continued weakness from the Middle East and softer discretionary spending
** UBS also points to deal deferrals and delayed client decisions
** TCS kickstarts Q1 earnings for Indian IT; peers Infosys INFY.NS, Wipro WIPR.NS and HCLTech HCLT.NS report later this month
** Jefferies expects deal wins to remain steady at $9 billion to $10 billion, says it is not enough to materially improve near-term growth
** Co's commentary will be more important than reported numbers, with investors focused on demand trends, BFSI spending and FY27 growth outlook, Jefferies and JP Morgan say
** Avg rating of 43 analysts on TCS is "buy"; median PT is 2,655 rupees
* YTD, stock down 35.6% vs IT index's .NIFTYIT 28.4% drop and Nifty 50's .NSEI
(Reporting by Kashish Tandon in Bengaluru)
Nifty IT index down 28.4% in 2026, trailing a 6.6% drop in Nifty 50
Rupee weakness to mask underlying softness in revenue and profit growth
TCS kicks off earnings on July 9
Brokerages say Infosys and HCLTech could trim upper end of annual revenue forecasts
AI adoption pressures pricing, speeds software development cycles
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)
Nifty IT index down 28.4% in 2026, trailing a 6.6% drop in Nifty 50
Rupee weakness to mask underlying softness in revenue and profit growth
TCS kicks off earnings on July 9
Brokerages say Infosys and HCLTech could trim upper end of annual revenue forecasts
AI adoption pressures pricing, speeds software development cycles
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)
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;)
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;)
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
(([email protected];;))
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
(([email protected];;))
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)
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)
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]))
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];))
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];))
Repeats with no change in text
DXC Technology won the award after suing Tata in Dallas
Tata says award unjustified under US trade-secrets law
Case involves life-insurance software trade secrets
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]; +1 (202) 938-5713))
Repeats with no change in text
DXC Technology won the award after suing Tata in Dallas
Tata says award unjustified under US trade-secrets law
Case involves life-insurance software trade secrets
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]; +1 (202) 938-5713))
June 12 (Reuters) - Anthropic:
ANTHROPIC: TCS AND ANTHROPIC PARTNER TO BRING CLAUDE TO REGULATED INDUSTRIES - WEBSITE
(([email protected];;))
June 12 (Reuters) - Anthropic:
ANTHROPIC: TCS AND ANTHROPIC PARTNER TO BRING CLAUDE TO REGULATED INDUSTRIES - WEBSITE
(([email protected];;))
June 11 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS AND ANTHROPIC LAUNCH GLOBAL PREMIER PARTNERSHIP TO DRIVE ENTERPRISE AI SCALING
TO EQUIP 50,000 ASSOCIATES WITH CLAUDE
TCS AND ANTHROPIC WILL ALSO JOINTLY GO TO MARKET WITH AI SOLUTIONS FOR HIGHLY REGULATED SECTORS
Further company coverage: TCS.NS
(([email protected];;))
June 11 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS AND ANTHROPIC LAUNCH GLOBAL PREMIER PARTNERSHIP TO DRIVE ENTERPRISE AI SCALING
TO EQUIP 50,000 ASSOCIATES WITH CLAUDE
TCS AND ANTHROPIC WILL ALSO JOINTLY GO TO MARKET WITH AI SOLUTIONS FOR HIGHLY REGULATED SECTORS
Further company coverage: TCS.NS
(([email protected];;))
Updates with details of commentary from exec, recasts throughout
BENGALURU, June 9 (Reuters) - India's largest software services exporter Tata Consultancy Services TCS.NS expects IT companies to slow down hiring, as the company moves towards having an equal number of employees and AI agents in its workforce, Chairman N Chandrasekaran said at the company's annual general meeting on Tuesday.
India's $315-billion IT sector has been grappling with investor concerns that AI could disrupt its traditional, labour-intensive business model. The industry, one of India's largest private sector employers, has already slowed down hiring with geopolitical turmoil also denting client demand.
Mumbai-headquartered TCS does not plan to downsize staff, but will hire less, Chandrasekaran said. Last July, it 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.
"If the company has half a million employees, the day is not far when the company will have half a million AI agents... The company's employees and AI agents will work together, and that will be the future."
TCS shares have fallen more than 32% so far in 2026, compared with a 25% drop in the Nifty IT .NIFTYIT index.
Advanced AI tools have shaken up the way companies work across industries from Silicon Valley to media and IT in the last few years as businesses seek efficiencies while staying on top of rapid technological changes.
Chandrasekaran said increased usage of AI agents would curb the number of people hired by both TCS and the broader IT industry as tasks are automated. At the same time, he said new roles and opportunities would emerge as companies adapt to AI-driven ways of working.
"Some of the work being done will go to AI agents. That will be the nature of the transition that we have to go through not only as a company, as an industry, and as a country," he said.
Chandrasekaran's comments carry added weight as TCS is India's largest IT firm by both market cap and number of employees.
The company's annualised AI revenue crossed $2.3 billion in the quarter ended March 31. Chandrasekaran said 100% of TCS' revenue will have an AI component before the end of the decade.
(Reporting by Haripriya Suresh and Sai Ishwarbharath B in Bengaluru; Editing by Sherry Jacob-Phillips and Ronojoy Mazumdar)
Updates with details of commentary from exec, recasts throughout
BENGALURU, June 9 (Reuters) - India's largest software services exporter Tata Consultancy Services TCS.NS expects IT companies to slow down hiring, as the company moves towards having an equal number of employees and AI agents in its workforce, Chairman N Chandrasekaran said at the company's annual general meeting on Tuesday.
India's $315-billion IT sector has been grappling with investor concerns that AI could disrupt its traditional, labour-intensive business model. The industry, one of India's largest private sector employers, has already slowed down hiring with geopolitical turmoil also denting client demand.
Mumbai-headquartered TCS does not plan to downsize staff, but will hire less, Chandrasekaran said. Last July, it 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.
"If the company has half a million employees, the day is not far when the company will have half a million AI agents... The company's employees and AI agents will work together, and that will be the future."
TCS shares have fallen more than 32% so far in 2026, compared with a 25% drop in the Nifty IT .NIFTYIT index.
Advanced AI tools have shaken up the way companies work across industries from Silicon Valley to media and IT in the last few years as businesses seek efficiencies while staying on top of rapid technological changes.
Chandrasekaran said increased usage of AI agents would curb the number of people hired by both TCS and the broader IT industry as tasks are automated. At the same time, he said new roles and opportunities would emerge as companies adapt to AI-driven ways of working.
"Some of the work being done will go to AI agents. That will be the nature of the transition that we have to go through not only as a company, as an industry, and as a country," he said.
Chandrasekaran's comments carry added weight as TCS is India's largest IT firm by both market cap and number of employees.
The company's annualised AI revenue crossed $2.3 billion in the quarter ended March 31. Chandrasekaran said 100% of TCS' revenue will have an AI component before the end of the decade.
(Reporting by Haripriya Suresh and Sai Ishwarbharath B in Bengaluru; Editing by Sherry Jacob-Phillips and Ronojoy Mazumdar)
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];;))
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.
Workforces are growing slower at India's top companies https://www.reuters.com/graphics/BRV-BRV/zgvologowpd/chart.png
(Editing by Una Galani; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[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.
Workforces are growing slower at India's top companies https://www.reuters.com/graphics/BRV-BRV/zgvologowpd/chart.png
(Editing by Una Galani; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
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)
(([email protected];))
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)
(([email protected];))
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.
TCS accounts for 60% of Tata Sons' equity value https://www.reuters.com/graphics/BRV-BRV/lbpgykjyrpq/chart.png
(Editing by Una Galani; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
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.
TCS accounts for 60% of Tata Sons' equity value https://www.reuters.com/graphics/BRV-BRV/lbpgykjyrpq/chart.png
(Editing by Una Galani; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
May 27 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - SKF AWARDS GLOBAL AI-LED BUSINESS TRANSFORMATION CONTRACT TO TCS
Source text: ID:nNSE896vq8
Further company coverage: TCS.NS
(([email protected];))
May 27 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - SKF AWARDS GLOBAL AI-LED BUSINESS TRANSFORMATION CONTRACT TO TCS
Source text: ID:nNSE896vq8
Further company coverage: TCS.NS
(([email protected];))
May 26 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - LAUNCHES SOVEREIGNSECURE CLOUD IN EUROPE
Source text: ID:nBSE796SJJ
Further company coverage: TCS.NS
(([email protected];))
May 26 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - LAUNCHES SOVEREIGNSECURE CLOUD IN EUROPE
Source text: ID:nBSE796SJJ
Further company coverage: TCS.NS
(([email protected];))
Adds graphic
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."
Big Tech's big splurge https://reut.rs/4kfOwGh
Cloud wars: American tech giants compete for AI demand https://reut.rs/48t380B
(Reporting by Aditya Soni and Abhirami G in Bengaluru; Editing by Anil D'Silva)
(([email protected];))
Adds graphic
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."
Big Tech's big splurge https://reut.rs/4kfOwGh
Cloud wars: American tech giants compete for AI demand https://reut.rs/48t380B
(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];))
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)
(([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)
(([email protected];))
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.
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.
Follow Aimee Donnellan on LinkedIn.
Follow Una Galani on LinkedIn and X.
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)
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.
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.
Follow Aimee Donnellan on LinkedIn.
Follow Una Galani on LinkedIn and X.
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
Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices. You may also visit megaphone.fm/adchoices to opt-out of targeted advertising.
(Editing by Sheryl Peña and Gregory Garner; Production by Aditya Srivastav)
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.
India’s external indicators have strengthened since the taper tantrum https://www.reuters.com/graphics/BRV-BRV/gkplkebjnvb/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
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.
India’s external indicators have strengthened since the taper tantrum https://www.reuters.com/graphics/BRV-BRV/gkplkebjnvb/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
May 12 (Reuters) - India's Nifty IT index .NIFTYIT tumbled 3.6% on Tuesday to its lowest level since May 2023, as a weak earnings outlook and fears of slowing demand for traditional IT services rattled investors.
Analysts at HSBC said in a Tuesday note that fourth-quarter earnings and fiscal 2027 outlooks from India's top-tier IT firms largely missed expectations, adding that strong global artificial intelligence spending could be "crowding out" spending on traditional IT services.
HSBC's warning comes a day after OpenAI said it is launching a new company backed by more than $4 billion to help organisations build and deploy AI.
In February, global IT stocks saw a rout after Anthropic launched new tools that heightened concerns about AI-driven disruption in the data and professional services industry.
On Tuesday, shares of Indian IT companies including Tata Consultancy Services TCS.NS , InfosysINFY.NS , HCL Technologies HCLT.NS and Wipro WIPR.NS fell between 2.5% and 4%.
(Reporting by Surbhi Misra in Bengaluru; Editing by Ronojoy Mazumdar)
(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))
May 12 (Reuters) - India's Nifty IT index .NIFTYIT tumbled 3.6% on Tuesday to its lowest level since May 2023, as a weak earnings outlook and fears of slowing demand for traditional IT services rattled investors.
Analysts at HSBC said in a Tuesday note that fourth-quarter earnings and fiscal 2027 outlooks from India's top-tier IT firms largely missed expectations, adding that strong global artificial intelligence spending could be "crowding out" spending on traditional IT services.
HSBC's warning comes a day after OpenAI said it is launching a new company backed by more than $4 billion to help organisations build and deploy AI.
In February, global IT stocks saw a rout after Anthropic launched new tools that heightened concerns about AI-driven disruption in the data and professional services industry.
On Tuesday, shares of Indian IT companies including Tata Consultancy Services TCS.NS , InfosysINFY.NS , HCL Technologies HCLT.NS and Wipro WIPR.NS fell between 2.5% and 4%.
(Reporting by Surbhi Misra in Bengaluru; Editing by Ronojoy Mazumdar)
(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))
Panel finds TCS did not comply with anti-sexual harassment law
Panel says female employees were bullied and sexually harassed
TCS previously suspended employees and is probing the issue
By Arpan Chaturvedi and Aditya Kalra
NEW DELHI, May 11 (Reuters) - India's National Commission for Women said on Monday it had found a "toxic workplace environment" at a Tata Consultancy Services TCS.NS back office, which it added also failed to comply with the country's anti-sexual harassment law.
TCS, which did not immediately respond to a request for comment on the findings published on Monday, has previously said it is cooperating with Indian authorities, who have arrested at least six employees over the sexual harassment allegations.
The case has attracted nationwide attention as it involves India's top software-services exporter, which has annual revenue of $30 billion and is part of the salt-to-aviation Tata Group.
TCS has in recent weeks launched an internal investigation and suspended staff after police began looking into allegations that some staff at the company's back office in Nashik, western India, had sexually harassed women and that some employees were pressured to convert from Hinduism to Islam.
The National Commission for Women, India's federal body for women's rights, said on Monday it visited the facility last month and interviewed staff. It said it found "pervasive harassment", "systemic bullying" and that some staff "used to bully female employees by denigrating Hindu mythology".
"This was a typical case of sexual harassment at the workplace, involving bullying of female employees, stalking, and demeaning conduct," the commission said in a statement.
The Nashik unit, with around 150 staff, was primarily engaged in call centre work for TCS, which operates across 55 countries through its 584,000 employees and whose clients include many large global companies.
The commission also said it found "zero compliance" with India's law on the prevention of sexual harassment of women in the workplace.
"It is more than clear that this inaction on the part of the organization was not just a compliance deficit but was a governance deficit as well," it added.
(Reporting by Arpan Chaturvedi and Aditya Kalra; Additional reporting by Sai Ishwar; Editing by Alexander Smith)
(([email protected];))
Panel finds TCS did not comply with anti-sexual harassment law
Panel says female employees were bullied and sexually harassed
TCS previously suspended employees and is probing the issue
By Arpan Chaturvedi and Aditya Kalra
NEW DELHI, May 11 (Reuters) - India's National Commission for Women said on Monday it had found a "toxic workplace environment" at a Tata Consultancy Services TCS.NS back office, which it added also failed to comply with the country's anti-sexual harassment law.
TCS, which did not immediately respond to a request for comment on the findings published on Monday, has previously said it is cooperating with Indian authorities, who have arrested at least six employees over the sexual harassment allegations.
The case has attracted nationwide attention as it involves India's top software-services exporter, which has annual revenue of $30 billion and is part of the salt-to-aviation Tata Group.
TCS has in recent weeks launched an internal investigation and suspended staff after police began looking into allegations that some staff at the company's back office in Nashik, western India, had sexually harassed women and that some employees were pressured to convert from Hinduism to Islam.
The National Commission for Women, India's federal body for women's rights, said on Monday it visited the facility last month and interviewed staff. It said it found "pervasive harassment", "systemic bullying" and that some staff "used to bully female employees by denigrating Hindu mythology".
"This was a typical case of sexual harassment at the workplace, involving bullying of female employees, stalking, and demeaning conduct," the commission said in a statement.
The Nashik unit, with around 150 staff, was primarily engaged in call centre work for TCS, which operates across 55 countries through its 584,000 employees and whose clients include many large global companies.
The commission also said it found "zero compliance" with India's law on the prevention of sexual harassment of women in the workplace.
"It is more than clear that this inaction on the part of the organization was not just a compliance deficit but was a governance deficit as well," it added.
(Reporting by Arpan Chaturvedi and Aditya Kalra; Additional reporting by Sai Ishwar; Editing by Alexander Smith)
(([email protected];))
May 5 (Reuters) - CrowdStrike Holdings Inc CRWD.O:
CROWDSTRIKE EXPANDS PROJECT QUILTWORKS, THE CYBERSECURITY COALITION FOR SECURING FRONTIER AI RISK
CROWDSTRIKE - ARMADIN, COGNIZANT, HCLTECH, INFOSYS, KPMG, NTT DATA, TCS, WIPRO JOIN QUILTWORKS COALITION
CROWDSTRIKE - INTEGRATES ANTHROPIC OPUS 4.7 AI INTO FALCON PLATFORM
Source text: ID:nBw1WDjhXa
Further company coverage: CRWD.O
(([email protected];))
May 5 (Reuters) - CrowdStrike Holdings Inc CRWD.O:
CROWDSTRIKE EXPANDS PROJECT QUILTWORKS, THE CYBERSECURITY COALITION FOR SECURING FRONTIER AI RISK
CROWDSTRIKE - ARMADIN, COGNIZANT, HCLTECH, INFOSYS, KPMG, NTT DATA, TCS, WIPRO JOIN QUILTWORKS COALITION
CROWDSTRIKE - INTEGRATES ANTHROPIC OPUS 4.7 AI INTO FALCON PLATFORM
Source text: ID:nBw1WDjhXa
Further company coverage: CRWD.O
(([email protected];))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, April 30 (Reuters Breakingviews) - The jobs crisis stirring in India’s vast outsourcing industry spells trouble for the country’s $4 trillion consumption-led economy. With the gap between household income and spending already widening, the consequences of the churn on finance and markets will be far-reaching.
White collar jobs are starting to disappear in the world’s services capital where many global firms employ thousands of staff in global capability centres that are responsible for everything from back-office functions to fraud detection to critical research and development.
Following the launch of artificial intelligence tools by Anthropic and others that allow companies do the same amount of work with fewer people, Oracle ORCL.N laid off 10,000 workers, or one-fifth of its India workforce in March, and Amazon.com AMZN.O let go of 500 people in the country in January, the Economic Times reported, citing sources. It looks like just the beginning of the headcount reductions.
One executive of a global bank told Reuters Breakingviews their workforce in India could shrink by one-third. This could happen quickly within just one or two years because of the double digit attrition rates at offices of global firms in cities including Bengaluru, Gurugram and Pune. JPMorgan Chase JPM.N has a whopping 55,000 employees in the country, which equals about one-fifth of its total workforce and includes one-third of all its technologists; HSBC’s HSBA.L 47,000 local employees make up 23% of its global headcount.
Then there is also “AI deflation” – the term Indian IT firms that typically lap up fresh graduates use to refer to slowing revenue growth. Annual revenue in U.S. dollar terms at industry leader Tata Consultancy Services TCS.NS shrunk for the year ended March 2026, marking the first decline since the $97 billion company's initial public offering in 2004.
Altogether, global capability centres and the IT sector employ up to 15 million people who anchor India’s middle class and whose jobs are under threat from generative AI, Bernstein analysts Venugopal Garre and Nikhil Arela said last week in an open letter to Prime Minister Narendra Modi.
Though this is a small fraction of India’s 616-million-strong workforce comprised mostly of swathes of informal and agricultural workers, the AI vulnerable cohort represents a sizeable chunk of the employed within the rising middle class. With fewer jobs, there will also be pressure on salaries for those who keep theirs.
For India, advances in generative AI are intensifying the intractable challenge of creating enough jobs in a country that skipped over the traditional manufacturing route and where 8 million people enter the workforce each year. Modi's push to drive manufacturing isn’t softening the blow much either, thanks to factory automation.
There are already signs that India’s world-beating 7.8% growth is decoupling from employment generation: New Delhi’s latest Economic Survey notes that since 2022 – the same year that OpenAI launched ChatGPT -- the labour intensity of output has marginally declined. That rupture will deepen unless workers upskill, the survey says, with the change coming “not in a single shock, but in a quiet, steady drift”.
This threatens a blow to spending on what people want, rather than what they need. Private consumption accounts for about 60% of GDP and the top 140 million Indians who on average each earn roughly $15,000 per annum, according to Blume Ventures, drive two-thirds of discretionary spending.
Any contraction in their incomes could force them to cut back, hitting sales of goods from new homes to cars and demand for experiences from dining out to live events. There will be a ripple effect too: Middle-class homes in India employ cooks, cleaners and drivers.
Demand for their services, and those of India’s vast gig economy servicing the middle class, would recede. That puts at risk earnings of carmakers, consumer groups and financial services providers which, together with Mukesh Ambani's Reliance Industries RELI.NS – the owner of India’s largest retailer - account for nearly 62% of the benchmark Nifty 50 index .NSEI. Sluggish consumption is already hurting some of them: small car sales slowed at Maruti Suzuki India MRTI.NS last year and Unilever's ULVR.L Indian unit has been grappling with weak urban demand.
A potential 30% reduction in the 15-million-strong outsourcing and global capability centre workforce over the next two years could shrink the top consuming class by about 5 million to 135 million.
Assuming Blume Ventures' annual income estimate of $15,000, this cohort's total spending power stands to fall by roughly $75 billion a year, assuming those people don't find other employment or sources of income. That's equivalent to 10% of the Nifty 50 constituents’ net sales of 71.3 trillion rupees ($755 billion) for the financial year ended March 2025, per data from the National Stock Exchange.
Overall household savings are already declining as indebtedness mounts: Indians saved barely 23% of their personal disposable income in the financial year to March 2025, according to an estimate by CLSA, down from nearly 30% two decades earlier. Debt as a share of disposable income surged to 55% from 31% over the same period.
While India’s household debt to GDP ratio is much lower than for most peer economies, meagre earnings mean Indians end up spending 13% of their income on repaying borrowings, higher than 8.5% for China and 8% for the US.
Much of what Indians borrow goes towards financing consumption rather than creating assets. Households are leveraging up to pay for everything from overseas vacations to weddings and smartphone purchases.
Such financing, which the Reserve Bank of India calls non-housing retail loans, makes up 55% of household obligations and is growing faster than mortgages. India's household debt to GDP ratio stands at 41.9%. If half of those borrowings are consumption-linked, it implies household discretionary debt amounts to roughly 21% of GDP. Apply that to India’s nominal GDP of 331 trillion rupees for 2024-25 and you have at risk loans worth 69 trillion rupees across the country’s banks and non-bank lenders.
This threatens the loan quality at financial institutions led by the $130 billion HDFC Bank HDBK.NS as well as lenders backed by global investors from Sumitomo Mitsui Financial 8316.T to Blackstone BX.N who are accelerating their expansion in India to tap retail credit demand.
The impact of AI on the global workforce may ultimately create more jobs. First, though, it may turn India’s already weak consumption and much-vaunted demographic dividend into a nightmare.
Follow Shritama Bose on LinkedIn and X.
Hiring in India's technology sector has tapered https://www.reuters.com/graphics/BRV-BRV/zgpollrgdvd/chart.png
Services account for well over half of India's output https://www.reuters.com/graphics/BRV-BRV/egpbeemrnvq/chart.png
Indians spend a large chunk of their income on servicing debt https://www.reuters.com/graphics/BRV-BRV/dwvkyyegdvm/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, April 30 (Reuters Breakingviews) - The jobs crisis stirring in India’s vast outsourcing industry spells trouble for the country’s $4 trillion consumption-led economy. With the gap between household income and spending already widening, the consequences of the churn on finance and markets will be far-reaching.
White collar jobs are starting to disappear in the world’s services capital where many global firms employ thousands of staff in global capability centres that are responsible for everything from back-office functions to fraud detection to critical research and development.
Following the launch of artificial intelligence tools by Anthropic and others that allow companies do the same amount of work with fewer people, Oracle ORCL.N laid off 10,000 workers, or one-fifth of its India workforce in March, and Amazon.com AMZN.O let go of 500 people in the country in January, the Economic Times reported, citing sources. It looks like just the beginning of the headcount reductions.
One executive of a global bank told Reuters Breakingviews their workforce in India could shrink by one-third. This could happen quickly within just one or two years because of the double digit attrition rates at offices of global firms in cities including Bengaluru, Gurugram and Pune. JPMorgan Chase JPM.N has a whopping 55,000 employees in the country, which equals about one-fifth of its total workforce and includes one-third of all its technologists; HSBC’s HSBA.L 47,000 local employees make up 23% of its global headcount.
Then there is also “AI deflation” – the term Indian IT firms that typically lap up fresh graduates use to refer to slowing revenue growth. Annual revenue in U.S. dollar terms at industry leader Tata Consultancy Services TCS.NS shrunk for the year ended March 2026, marking the first decline since the $97 billion company's initial public offering in 2004.
Altogether, global capability centres and the IT sector employ up to 15 million people who anchor India’s middle class and whose jobs are under threat from generative AI, Bernstein analysts Venugopal Garre and Nikhil Arela said last week in an open letter to Prime Minister Narendra Modi.
Though this is a small fraction of India’s 616-million-strong workforce comprised mostly of swathes of informal and agricultural workers, the AI vulnerable cohort represents a sizeable chunk of the employed within the rising middle class. With fewer jobs, there will also be pressure on salaries for those who keep theirs.
For India, advances in generative AI are intensifying the intractable challenge of creating enough jobs in a country that skipped over the traditional manufacturing route and where 8 million people enter the workforce each year. Modi's push to drive manufacturing isn’t softening the blow much either, thanks to factory automation.
There are already signs that India’s world-beating 7.8% growth is decoupling from employment generation: New Delhi’s latest Economic Survey notes that since 2022 – the same year that OpenAI launched ChatGPT -- the labour intensity of output has marginally declined. That rupture will deepen unless workers upskill, the survey says, with the change coming “not in a single shock, but in a quiet, steady drift”.
This threatens a blow to spending on what people want, rather than what they need. Private consumption accounts for about 60% of GDP and the top 140 million Indians who on average each earn roughly $15,000 per annum, according to Blume Ventures, drive two-thirds of discretionary spending.
Any contraction in their incomes could force them to cut back, hitting sales of goods from new homes to cars and demand for experiences from dining out to live events. There will be a ripple effect too: Middle-class homes in India employ cooks, cleaners and drivers.
Demand for their services, and those of India’s vast gig economy servicing the middle class, would recede. That puts at risk earnings of carmakers, consumer groups and financial services providers which, together with Mukesh Ambani's Reliance Industries RELI.NS – the owner of India’s largest retailer - account for nearly 62% of the benchmark Nifty 50 index .NSEI. Sluggish consumption is already hurting some of them: small car sales slowed at Maruti Suzuki India MRTI.NS last year and Unilever's ULVR.L Indian unit has been grappling with weak urban demand.
A potential 30% reduction in the 15-million-strong outsourcing and global capability centre workforce over the next two years could shrink the top consuming class by about 5 million to 135 million.
Assuming Blume Ventures' annual income estimate of $15,000, this cohort's total spending power stands to fall by roughly $75 billion a year, assuming those people don't find other employment or sources of income. That's equivalent to 10% of the Nifty 50 constituents’ net sales of 71.3 trillion rupees ($755 billion) for the financial year ended March 2025, per data from the National Stock Exchange.
Overall household savings are already declining as indebtedness mounts: Indians saved barely 23% of their personal disposable income in the financial year to March 2025, according to an estimate by CLSA, down from nearly 30% two decades earlier. Debt as a share of disposable income surged to 55% from 31% over the same period.
While India’s household debt to GDP ratio is much lower than for most peer economies, meagre earnings mean Indians end up spending 13% of their income on repaying borrowings, higher than 8.5% for China and 8% for the US.
Much of what Indians borrow goes towards financing consumption rather than creating assets. Households are leveraging up to pay for everything from overseas vacations to weddings and smartphone purchases.
Such financing, which the Reserve Bank of India calls non-housing retail loans, makes up 55% of household obligations and is growing faster than mortgages. India's household debt to GDP ratio stands at 41.9%. If half of those borrowings are consumption-linked, it implies household discretionary debt amounts to roughly 21% of GDP. Apply that to India’s nominal GDP of 331 trillion rupees for 2024-25 and you have at risk loans worth 69 trillion rupees across the country’s banks and non-bank lenders.
This threatens the loan quality at financial institutions led by the $130 billion HDFC Bank HDBK.NS as well as lenders backed by global investors from Sumitomo Mitsui Financial 8316.T to Blackstone BX.N who are accelerating their expansion in India to tap retail credit demand.
The impact of AI on the global workforce may ultimately create more jobs. First, though, it may turn India’s already weak consumption and much-vaunted demographic dividend into a nightmare.
Follow Shritama Bose on LinkedIn and X.
Hiring in India's technology sector has tapered https://www.reuters.com/graphics/BRV-BRV/zgpollrgdvd/chart.png
Services account for well over half of India's output https://www.reuters.com/graphics/BRV-BRV/egpbeemrnvq/chart.png
Indians spend a large chunk of their income on servicing debt https://www.reuters.com/graphics/BRV-BRV/dwvkyyegdvm/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, April 30 (Reuters Breakingviews) - The jobs crisis stirring in India’s vast outsourcing industry spells trouble for the country’s $4 trillion consumption-led economy. With the gap between household income and spending already widening, the consequences of the churn on finance and markets will be far-reaching.
White collar jobs are starting to disappear in the world’s services capital where many global firms employ thousands of staff in global capability centres that are responsible for everything from back-office functions to fraud detection to critical research and development.
Following the launch of artificial intelligence tools by Anthropic and others that allow companies do the same amount of work with fewer people, Oracle ORCL.N laid off 10,000 workers, or one-fifth of its India workforce in March, and Amazon.com AMZN.O let go of 500 people in the country in January, the Economic Times reported, citing sources. It looks like just the beginning of the headcount reductions.
One executive of a global bank told Reuters Breakingviews their workforce in India could shrink by one-third. This could happen quickly within just one or two years because of the double digit attrition rates at offices of global firms in cities including Bengaluru, Gurugram and Pune. JPMorgan Chase JPM.N has a whopping 55,000 employees in the country, which equals about one-fifth of its total workforce and includes one-third of all its technologists; HSBC’s HSBA.L 47,000 local employees make up 23% of its global headcount.
Then there is also “AI deflation” – the term Indian IT firms that typically lap up fresh graduates use to refer to slowing revenue growth. Annual revenue in U.S. dollar terms at industry leader Tata Consultancy Services TCS.NS shrunk for the year ended March 2026, marking the first decline since the $97 billion company's initial public offering in 2004.
Altogether, global capability centres and the IT sector employ up to 15 million people who anchor India’s middle class and whose jobs are under threat from generative AI, Bernstein analysts Venugopal Garre and Nikhil Arela said last week in an open letter to Prime Minister Narendra Modi.
Though this is a small fraction of India’s 616-million-strong workforce comprised mostly of swathes of informal and agricultural workers, the AI vulnerable cohort represents a sizeable chunk of the employed within the rising middle class. With fewer jobs, there will also be pressure on salaries for those who keep theirs.
For India, advances in generative AI are intensifying the intractable challenge of creating enough jobs in a country that skipped over the traditional manufacturing route and where 8 million people enter the workforce each year. Modi's push to drive manufacturing isn’t softening the blow much either, thanks to factory automation.
There are already signs that India’s world-beating 7.8% growth is decoupling from employment generation: New Delhi’s latest Economic Survey notes that since 2022 – the same year that OpenAI launched ChatGPT -- the labour intensity of output has marginally declined. That rupture will deepen unless workers upskill, the survey says, with the change coming “not in a single shock, but in a quiet, steady drift”.
This threatens a blow to spending on what people want, rather than what they need. Private consumption accounts for about 60% of GDP and the top 140 million Indians who on average each earn roughly $15,000 per annum, according to Blume Ventures, drive two-thirds of discretionary spending.
Any contraction in their incomes could force them to cut back, hitting sales of goods from new homes to cars and demand for experiences from dining out to live events. There will be a ripple effect too: Middle-class homes in India employ cooks, cleaners and drivers.
Demand for their services, and those of India’s vast gig economy servicing the middle class, would recede. That puts at risk earnings of carmakers, consumer groups and financial services providers which, together with Mukesh Ambani's Reliance Industries RELI.NS – the owner of India’s largest retailer - account for nearly 62% of the benchmark Nifty 50 index .NSEI. Sluggish consumption is already hurting some of them: small car sales slowed at Maruti Suzuki India MRTI.NS last year and Unilever's ULVR.L Indian unit has been grappling with weak urban demand.
A potential 30% reduction in the 15-million-strong outsourcing and global capability centre workforce over the next two years could shrink the top consuming class by about 5 million to 135 million.
Assuming Blume Ventures' annual income estimate of $15,000, this cohort's total spending power stands to fall by roughly $75 billion a year, assuming those people don't find other employment or sources of income. That's equivalent to 10% of the Nifty 50 constituents’ net sales of 71.3 trillion rupees ($755 billion) for the financial year ended March 2025, per data from the National Stock Exchange.
Overall household savings are already declining as indebtedness mounts: Indians saved barely 23% of their personal disposable income in the financial year to March 2025, according to an estimate by CLSA, down from nearly 30% two decades earlier. Debt as a share of disposable income surged to 55% from 31% over the same period.
While India’s household debt to GDP ratio is much lower than for most peer economies, meagre earnings mean Indians end up spending 13% of their income on repaying borrowings, higher than 8.5% for China and 8% for the US.
Much of what Indians borrow goes towards financing consumption rather than creating assets. Households are leveraging up to pay for everything from overseas vacations to weddings and smartphone purchases.
Such financing, which the Reserve Bank of India calls non-housing retail loans, makes up 55% of household obligations and is growing faster than mortgages. India's household debt to GDP ratio stands at 41.9%. If half of those borrowings are consumption-linked, it implies household discretionary debt amounts to roughly 21% of GDP. Apply that to India’s nominal GDP of 331 trillion rupees for 2024-25 and you have at risk loans worth 69 trillion rupees across the country’s banks and non-bank lenders.
This threatens the loan quality at financial institutions led by the $130 billion HDFC Bank HDBK.NS as well as lenders backed by global investors from Sumitomo Mitsui Financial 8316.T to Blackstone BX.N who are accelerating their expansion in India to tap retail credit demand.
The impact of AI on the global workforce may ultimately create more jobs. First, though, it may turn India’s already weak consumption and much-vaunted demographic dividend into a nightmare.
Follow Shritama Bose on LinkedIn and X.
Hiring in India's technology sector has tapered https://www.reuters.com/graphics/BRV-BRV/zgpollrgdvd/chart.png
Services account for well over half of India's output https://www.reuters.com/graphics/BRV-BRV/egpbeemrnvq/chart.png
Indians spend a large chunk of their income on servicing debt https://www.reuters.com/graphics/BRV-BRV/dwvkyyegdvm/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, April 30 (Reuters Breakingviews) - The jobs crisis stirring in India’s vast outsourcing industry spells trouble for the country’s $4 trillion consumption-led economy. With the gap between household income and spending already widening, the consequences of the churn on finance and markets will be far-reaching.
White collar jobs are starting to disappear in the world’s services capital where many global firms employ thousands of staff in global capability centres that are responsible for everything from back-office functions to fraud detection to critical research and development.
Following the launch of artificial intelligence tools by Anthropic and others that allow companies do the same amount of work with fewer people, Oracle ORCL.N laid off 10,000 workers, or one-fifth of its India workforce in March, and Amazon.com AMZN.O let go of 500 people in the country in January, the Economic Times reported, citing sources. It looks like just the beginning of the headcount reductions.
One executive of a global bank told Reuters Breakingviews their workforce in India could shrink by one-third. This could happen quickly within just one or two years because of the double digit attrition rates at offices of global firms in cities including Bengaluru, Gurugram and Pune. JPMorgan Chase JPM.N has a whopping 55,000 employees in the country, which equals about one-fifth of its total workforce and includes one-third of all its technologists; HSBC’s HSBA.L 47,000 local employees make up 23% of its global headcount.
Then there is also “AI deflation” – the term Indian IT firms that typically lap up fresh graduates use to refer to slowing revenue growth. Annual revenue in U.S. dollar terms at industry leader Tata Consultancy Services TCS.NS shrunk for the year ended March 2026, marking the first decline since the $97 billion company's initial public offering in 2004.
Altogether, global capability centres and the IT sector employ up to 15 million people who anchor India’s middle class and whose jobs are under threat from generative AI, Bernstein analysts Venugopal Garre and Nikhil Arela said last week in an open letter to Prime Minister Narendra Modi.
Though this is a small fraction of India’s 616-million-strong workforce comprised mostly of swathes of informal and agricultural workers, the AI vulnerable cohort represents a sizeable chunk of the employed within the rising middle class. With fewer jobs, there will also be pressure on salaries for those who keep theirs.
For India, advances in generative AI are intensifying the intractable challenge of creating enough jobs in a country that skipped over the traditional manufacturing route and where 8 million people enter the workforce each year. Modi's push to drive manufacturing isn’t softening the blow much either, thanks to factory automation.
There are already signs that India’s world-beating 7.8% growth is decoupling from employment generation: New Delhi’s latest Economic Survey notes that since 2022 – the same year that OpenAI launched ChatGPT -- the labour intensity of output has marginally declined. That rupture will deepen unless workers upskill, the survey says, with the change coming “not in a single shock, but in a quiet, steady drift”.
This threatens a blow to spending on what people want, rather than what they need. Private consumption accounts for about 60% of GDP and the top 140 million Indians who on average each earn roughly $15,000 per annum, according to Blume Ventures, drive two-thirds of discretionary spending.
Any contraction in their incomes could force them to cut back, hitting sales of goods from new homes to cars and demand for experiences from dining out to live events. There will be a ripple effect too: Middle-class homes in India employ cooks, cleaners and drivers.
Demand for their services, and those of India’s vast gig economy servicing the middle class, would recede. That puts at risk earnings of carmakers, consumer groups and financial services providers which, together with Mukesh Ambani's Reliance Industries RELI.NS – the owner of India’s largest retailer - account for nearly 62% of the benchmark Nifty 50 index .NSEI. Sluggish consumption is already hurting some of them: small car sales slowed at Maruti Suzuki India MRTI.NS last year and Unilever's ULVR.L Indian unit has been grappling with weak urban demand.
A potential 30% reduction in the 15-million-strong outsourcing and global capability centre workforce over the next two years could shrink the top consuming class by about 5 million to 135 million.
Assuming Blume Ventures' annual income estimate of $15,000, this cohort's total spending power stands to fall by roughly $75 billion a year, assuming those people don't find other employment or sources of income. That's equivalent to 10% of the Nifty 50 constituents’ net sales of 71.3 trillion rupees ($755 billion) for the financial year ended March 2025, per data from the National Stock Exchange.
Overall household savings are already declining as indebtedness mounts: Indians saved barely 23% of their personal disposable income in the financial year to March 2025, according to an estimate by CLSA, down from nearly 30% two decades earlier. Debt as a share of disposable income surged to 55% from 31% over the same period.
While India’s household debt to GDP ratio is much lower than for most peer economies, meagre earnings mean Indians end up spending 13% of their income on repaying borrowings, higher than 8.5% for China and 8% for the US.
Much of what Indians borrow goes towards financing consumption rather than creating assets. Households are leveraging up to pay for everything from overseas vacations to weddings and smartphone purchases.
Such financing, which the Reserve Bank of India calls non-housing retail loans, makes up 55% of household obligations and is growing faster than mortgages. India's household debt to GDP ratio stands at 41.9%. If half of those borrowings are consumption-linked, it implies household discretionary debt amounts to roughly 21% of GDP. Apply that to India’s nominal GDP of 331 trillion rupees for 2024-25 and you have at risk loans worth 69 trillion rupees across the country’s banks and non-bank lenders.
This threatens the loan quality at financial institutions led by the $130 billion HDFC Bank HDBK.NS as well as lenders backed by global investors from Sumitomo Mitsui Financial 8316.T to Blackstone BX.N who are accelerating their expansion in India to tap retail credit demand.
The impact of AI on the global workforce may ultimately create more jobs. First, though, it may turn India’s already weak consumption and much-vaunted demographic dividend into a nightmare.
Follow Shritama Bose on LinkedIn and X.
Hiring in India's technology sector has tapered https://www.reuters.com/graphics/BRV-BRV/zgpollrgdvd/chart.png
Services account for well over half of India's output https://www.reuters.com/graphics/BRV-BRV/egpbeemrnvq/chart.png
Indians spend a large chunk of their income on servicing debt https://www.reuters.com/graphics/BRV-BRV/dwvkyyegdvm/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
April 28 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - CO, ASX GO-LIVE WITH CHESS RELEASE 1 FOR CASH CLEARING AND SETTLEMENT
TCS - CO AND ASX BEGIN WORK ON CHESS REPLACEMENT PROGRAM RELEASE-2
Source text: ID:nNSE7HSXpZ
Further company coverage: TCS.NS
(([email protected];;))
April 28 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - CO, ASX GO-LIVE WITH CHESS RELEASE 1 FOR CASH CLEARING AND SETTLEMENT
TCS - CO AND ASX BEGIN WORK ON CHESS REPLACEMENT PROGRAM RELEASE-2
Source text: ID:nNSE7HSXpZ
Further company coverage: TCS.NS
(([email protected];;))
April 27 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - CO AND SIEMENS ENERGY AG ANNOUNCE STRATEGIC AI PARTNERSHIP
TCS - SIGNS TWO MOUS WITH SIEMENS ENERGY AG AND SIEMENS ENERGY INDIA LIMITED
TCS - SIEMENS ENERGY INDIA LIMITED TO SUPPORT TCS HYPERVAULT FOR AI DATA CENTER ENERGY NEEDS
Source text: ID:nNSEYKKGq
Further company coverage: TCS.NS
(([email protected];))
April 27 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - CO AND SIEMENS ENERGY AG ANNOUNCE STRATEGIC AI PARTNERSHIP
TCS - SIGNS TWO MOUS WITH SIEMENS ENERGY AG AND SIEMENS ENERGY INDIA LIMITED
TCS - SIEMENS ENERGY INDIA LIMITED TO SUPPORT TCS HYPERVAULT FOR AI DATA CENTER ENERGY NEEDS
Source text: ID:nNSEYKKGq
Further company coverage: TCS.NS
(([email protected];))
Adds details throughout
April 24 (Reuters) - Shares of Infosys INFY.NS fell as much as 4.2% to their lowest level in three years on Friday after the firm forecast disappointing fiscal 2027 revenue growth, as AI-led spending caution and geopolitical tensions weigh on India’s $315 billion IT sector.
India's No. 2 IT services exporter's shares were trading at 1,188.50, their lowest level since April 2023. The stock was the second-biggest loser on the Nifty IT index .NIFTYIT, trailing LTM LTIM.NS, which was down 4.87% after it marginally beat fourth-quarter expectations.
The weak outlook sent U.S.-listed shares of Infosys down 6% overnight.
Infosys was the second Indian IT firm after HCLTech's HCLT.NS to flag heightened competitive intensity amid AI-driven spending caution and macroeconomic headwinds, prompting a more selective approach to deal participation.
Industry leader Tata Consultancy Services TCS.NS earlier posted its first annual revenue decline in more than two decades.
Analysts at BofA said Infosys and HCL forecasts indicate that revenue growth will take longer to accelerate than previously expected, though, like other companies, it said the shortfall was not due to demand.
However, Infosys did outperform peers in converting bookings into revenue despite macro volatility and its AI portfolio should support stable mid-single-digit growth over the next five years, Morningstar analysts said.
At least seven brokerages cut their price targets, while Nomura increased its PT expectations by 10 rupees to 1,640 rupees.
Infosys expects fiscal 2027 constant-currency revenue growth of 1.5%–3.5%, below analysts' expectations of around 2%–4%, as it factors in weakness in the manufacturing vertical, particularly in Europe's auto sector.
(Reporting by Urvi Dugar in Bengaluru; Editing by Harikrishnan Nair)
(([email protected]; +91 9558725583;))
Adds details throughout
April 24 (Reuters) - Shares of Infosys INFY.NS fell as much as 4.2% to their lowest level in three years on Friday after the firm forecast disappointing fiscal 2027 revenue growth, as AI-led spending caution and geopolitical tensions weigh on India’s $315 billion IT sector.
India's No. 2 IT services exporter's shares were trading at 1,188.50, their lowest level since April 2023. The stock was the second-biggest loser on the Nifty IT index .NIFTYIT, trailing LTM LTIM.NS, which was down 4.87% after it marginally beat fourth-quarter expectations.
The weak outlook sent U.S.-listed shares of Infosys down 6% overnight.
Infosys was the second Indian IT firm after HCLTech's HCLT.NS to flag heightened competitive intensity amid AI-driven spending caution and macroeconomic headwinds, prompting a more selective approach to deal participation.
Industry leader Tata Consultancy Services TCS.NS earlier posted its first annual revenue decline in more than two decades.
Analysts at BofA said Infosys and HCL forecasts indicate that revenue growth will take longer to accelerate than previously expected, though, like other companies, it said the shortfall was not due to demand.
However, Infosys did outperform peers in converting bookings into revenue despite macro volatility and its AI portfolio should support stable mid-single-digit growth over the next five years, Morningstar analysts said.
At least seven brokerages cut their price targets, while Nomura increased its PT expectations by 10 rupees to 1,640 rupees.
Infosys expects fiscal 2027 constant-currency revenue growth of 1.5%–3.5%, below analysts' expectations of around 2%–4%, as it factors in weakness in the manufacturing vertical, particularly in Europe's auto sector.
(Reporting by Urvi Dugar in Bengaluru; Editing by Harikrishnan Nair)
(([email protected]; +91 9558725583;))
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Popular questions
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What does TCS do?
Tata Consultancy Services (TCS)is an IT services, consulting and business solutions organization partnering with many of the world’s largest businesses in their transformational journeys for many years. With a global presence and deep domain expertise across multiple industry verticals, the company offers a comprehensive portfolio of services and offerings - grouped under application development and management, digital transformation, AI (Artificial Intelligence), data and cloud services, engineering services, cognitive business operations, cyber security, and products & platforms - targeting every C-suite stakeholder.
Who are the competitors of TCS?
TCS major competitors are Infosys, HCL Technologies, Wipro, Tech Mahindra, LTM, Oracle Finl. Service, Persistent Systems. Market Cap of TCS is ₹7,44,801 Crs. While the median market cap of its peers are ₹1,41,981 Crs.
Is TCS financially stable compared to its competitors?
TCS seems to be financially stable compared to its competitors. The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Does TCS pay decent dividends?
The company seems to pay a good stable dividend. TCS latest dividend payout ratio is 80.92% and 3yr average dividend payout ratio is 77.47%
How has TCS allocated its funds?
Companies resources are allocated to majorly productive assets like Plant & Machinery and unproductive assets like Accounts Receivable
How strong is TCS balance sheet?
Balance sheet of TCS is strong. It shouldn't have solvency or liquidity issues.
Is the profitablity of TCS improving?
Yes, profit is increasing. The profit of TCS is ₹49,210 Crs for Mar 2026, ₹48,553 Crs for Mar 2025 and ₹45,908 Crs for Mar 2024
Is the debt of TCS increasing or decreasing?
Yes, The net debt of TCS is increasing. Latest net debt of TCS is -₹25,809 Crs as of Mar-26. This is greater than Mar-25 when it was -₹30,912 Crs.
Is TCS stock expensive?
TCS is not expensive. Latest PE of TCS is 15.14, while 3 year average PE is 28.6. Also latest EV/EBITDA of TCS is 10.11 while 3yr average is 20.16.
Has the share price of TCS grown faster than its competition?
TCS has given lower returns compared to its competitors. TCS has grown at ~6.52% over the last 9yrs while peers have grown at a median rate of 13.25%
Is the promoter bullish about TCS?
Promoters stake in the company seems stable, and we need to go through filings and allocation of resources to gauge promoter bullishness. Latest quarter promoter holding in TCS is 71.77% and last quarter promoter holding is 71.77%.
Are mutual funds buying/selling TCS?
The mutual fund holding of TCS is increasing. The current mutual fund holding in TCS is 5.77% while previous quarter holding is 5.52%.