Weak order books bode ill for IT firms this fiscal year

SLimmer order books and fewer mega-deals spell gloomy days ahead for four of India's largest IT services companies, posing an additional headache in a world of rising turbulence and advancing AI.

- Jas Bardia

Tata Consultancy Services Ltd (TCS) and Wipro Ltd started FY26 with an order book which was smaller than at the start of FY25, while Infosys clocked fewer large deals in FY25, implying weaker revenue growth in the year ahead, five analysts said. TCS and Wipro also clocked fewer mega-deals (contracts above $1 billion) in the past year.

Mumbai-based TCS won orders worth $39 billion, 7.7% below what the country's largest IT services company won in FY24. TCS reported 3.8% dollar revenue growth to end the year with $30.18 billion in revenue.

Wipro's order book was down 4% last year to $14.3 billion, whereas cross-town rival Infosys reported large deals worth $11.6 billion, down 34% year-on-year (y-o-y). HCL Technologies won $9.27 billion worth of new deals last year, a 5% drop from the $9.76 billion won in FY24.