AI drives HCLTech growth; impact softer for TCS

THE THIRD-QUARTER EARNINGS of Tata Consultancy Services (TCS) and HCLTech show diverging trends on artificial intelligence (AI) revenues for the IT majors as both scale up the next-gen technology integration into their business models.

- URVI MALVANIA

While AI is already feeding into revenue growth and margin expansion at HCLTech, it is playing a more defensive role at TCS — stabilising growth rather than driving acceleration, according to analysts.

“Large-scale AI transformation and legacy modernisation are emerging as key growth drivers,” analysts at Nuvama said in a note.