Five analysts said the order book had a smaller order book than it started in FY25, while Infosys was less in big deals in FY25, meaning weaker revenue growth in the coming year, five analysts said. TCS and Wipro also have fewer large deals (contracts above $1 billion) over the past year.
Mumbai-based TCS won $39 billion worth of orders, more than the country’s largest IT Services company won in fiscal 24. TCS reported a 3.8% U.S. dollar revenue growth to the end of this year, with revenue of $30.18 billion.
Wipro’s order book fell 4% last year to $14.3 billion, while cross-city rival Infosys reported a large deal worth $11.6 billion, down 34% year-on-year. HCL Technologies won a new deal worth $9.27 billion last year, down 5% from the 9.76 billion won in fiscal 24.
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On Wipro, overall transaction bookings fell despite the high value of $30 million in the year. Infosys clarifies the value of large deals that are only over $50 million, but the total contract value over the year is no more than $50 million.
“In fiscal 25, TCV (total contract value) fell 34% to $11.6 billion. TCV declines may be the highest among its peers,” Kotak Institutional Equities analyst Kawaljeet Saluja, Sathishkumar S. and Vamshi Krishna announced their annual salary in annotation announced on April 18 in Infosys.
“The renewal (-40.2% year-on-year) and the new TCV (-28.5% YOY). Unlike FY25, the lack of new large deals reduced revenue growth visibility in FY26E, where they provided considerable revenue growth visibility.”
A second analyst made a similar comment.
“The win of low orders reflects the silent sentiment we see in businesses that spend,” said Ashutosh Sharma, vice president of Forrester, a Massachusetts-based technology consulting firm.
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“The last six months of FY25 were affected due to this uncertainty. Now, as we enter FY26, we are not able to get some clarity on demand due to this uncertain tariff situation. So we will see lower revenues, which is evident in IT Services Companies’ guidance for the next fiscal year,” Sharma said.
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TCS does not provide revenue guidance. However, CEO K. Krithivasan said he expects the company to grow faster in the current fiscal year than last year.
Both Infosys and Wipro outlined the slow start of the 26th fiscal year. Infosys expects the slowest growth in the year since April 2009. Wipro expects the slowest starting point for the new fiscal year, with revenue expected to decline on April 6 in a constant currency. Constant currency will not consider currency fluctuations.
Currently, Wipro attributes weaker order books to slower spending for smaller customers.
“The deal for smaller and medium buckets is not fast enough,” said Aparna Iyer, chief financial officer of WIPRO.
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Wipro’s large transaction bookings grew 17% per year to $5.4 billion, even as its total order bookings fell.
“[W]e believe that medium-sized deals will continue to leak barrels, while large conversion deals may see execution delays in near-middle term,” Prabhudas Liladher analysts Pritesh Thakkar and Sujay Chavan wrote in an April 17 note, announcing its revenues in Wipro.
The weaker book is a background of uncertain macroeconomic climate aggravated by President Donald Trump’s tariff threat, which has led many Fortune 500 companies to suspend technology spending and put basic technology projects on hold.
Fewer orders bookings may also affect three of the country’s four largest IT outsourcing providers, which collectively employ 1.16 million people. Less orders mean less work and less demand for talent.
The fourth analyst commented on the lines.
“We need to increase $1 million per employee by 2028 for a world’s revenue. That means there will be fewer employees in all IT majors,” said R. Wang, founder of Constellation Research, a California-based technology consulting firm.
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The country’s largest IT service provider earns between $44,000 and $60,000 per employee.
Wang added that efficiency will further reduce customers’ IT budgets, which could hurt the business.
Wang said: “If successful, top companies will be able to reduce their overall IT spending by 25%.
The rise of AI is also bad news for the country’s $283 billion IT industry. Local IT services companies currently deploy a team of engineers to engage in mundane and repetitive work. Advances in the AI generation mean that using algorithms specific to company data can do repetitive work done by humans. Using more Gen AI tools can help customers save costs and may generate less revenue for IT service companies.
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