AI Was Indian IT’s Saving Grace in Q3, And Hints at What’s to Come

Indian IT companies boasted AI revenue in Q3; however, it is still a very small percentage of total revenue.
Indian IT
Image by Nalini Nirad
India’s top IT services firms entered the December quarter carrying the promise that AI would lift growth, protect margins, and pump momentum into a sector that had been slowing for the past two years. That promise was delivered.  Revenues rose across the board, even as profits fractured and headcount strategies split.  TCS led by a wide margin, reporting ₹67,087 crore turnover in Q3 FY26 with sequential growth of 2%. Infosys followed with ₹45,479 crore, up 8.9% year-on-year. HCLTech posted ₹33,872 crore, growing 13.3% YoY. Wipro reported ₹23,555 crore, up 5.5% YoY.  Meanwhile, Tech Mahindra posted its strongest momentum in years, delivering ₹14,393 crore revenue at 8.3% YoY growth. Its net profit also rose 14.1% to ₹1,122 crore, even as others took a hit due to new labour codes implementation, restructuring costs, and one-time charges that cut into their margins. But the big takeaway was AI, which is now Indian IT’s operating logic in how wor
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Mohit Pandey
Mohit writes about AI in simple, explainable, and often funny words. He's especially passionate about chatting with those building AI for Bharat, with the occasional detour into AGI.
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