The Indian IT sector has shown remarkable resilience in the face of global challenges, with top players reporting steady growth in the first quarter of fiscal year 2026 (Q1 FY26). Despite the subdued revenue growth, the industry’s focus on large deal wins, cost efficiencies, and strategic investments in cutting-edge technologies like GenAI has set a more optimistic tone for the future.
Key Highlights
The Q1 FY26 results from India’s IT majors, including Tech Mahindra, highlight the industry’s adaptability in a challenging global landscape. A key takeaway is the increased emphasis on large deal wins, which has contributed to the growth in revenue and profitability. This shift towards strategic investments in AI and GenAI technologies is expected to drive future growth and competitiveness.
Revenue and Profit Performance
The IT majors have reported a modest revenue growth of 4% on a last twelve months (LTM) basis, with broad-based momentum across verticals and geographies. The revenue growth was driven by strong performances in the BFSI and communications sectors, which contributed to the overall growth. The profit performance was more impressive, with a substantial increase of 44% on an LTM basis, driven by cost efficiencies and strategic investments.
GenAI: The Future of Manufacturing and Supply Chain Resilience
The convergence of manufacturing and AI, also known as GenAI, is gaining traction in the industry. The Manufacturing GenAI report highlights that over 90% of industrial leaders believe that supply chain resilience and mechanical performance will be greatly enhanced by such convergence. This trend is expected to continue, driving growth and competitiveness in the Indian IT sector.
Conclusion
The Q1 FY26 results from India’s IT majors demonstrate the industry’s resilience in the face of global challenges. The focus on large deal wins, cost efficiencies, and strategic investments in AI and GenAI technologies is expected to drive future growth and competitiveness. As the industry continues to evolve, it will be crucial for IT companies to stay agile and adapt to changing market conditions to maintain their competitive edge.
Originally published on https://themachinemaker.com/news/ltimindtree-reports-steady-first-quarter-growth-with-strengthened-margins-and-strategic-wins/
