For the full year, TCS experienced a 1.35% growth in net profit, whereas Infosys achieved a 10.20% increase. In contrast, HCLTech faced a 4.30% decline in profit despite an 11.18% increase in revenue—showing how AI is reshaping traditional revenue streams.

Wipro’s performance was muted, with a mere 0.47% growth in net profit for the year. Meanwhile, Tech Mahindra bucked the trend with a strong 16% increase in Q4 profits and a 13.15% growth for the entire fiscal year.

As companies adapt to AI, they find new revenue opportunities but also face challenges to their existing IT service models. “AI is creating new revenue opportunities while impacting traditional IT service revenues,” one industry expert noted.

Clients are changing their purchasing behavior too—placing more emphasis on results and project scale in their IT service purchases. This shift could redefine how these firms operate moving forward.

Historically, India’s IT sector has thrived on global demand for outsourcing and technology services. However, this year’s mixed financial results underscore the complexities introduced by emerging technologies like AI.

Looking ahead, observers remain cautious about how these dynamics will evolve as companies continue to adjust their strategies in response to AI’s influence on client expectations and market demands.

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