Three decades after its humble beginnings in Chennai, Cognizant Technology Solutions Corp. is contemplating a return to Indian soil—this time to list its shares on domestic stock exchanges. If realized, this move could make Cognizant India’s second-largest listed IT services firm, behind only Tata Consultancy Services (TCS), and mark one of the most symbolic corporate homecomings in Indian tech history.
A Tale of Two Giants: Cognizant vs. Infosys
At first glance, Cognizant and Infosys appear evenly matched in scale. Both closed their last fiscal year with revenues around $19.7 billion. Yet, when it comes to valuation, they are worlds apart.
Infosys commands a market capitalization of $70.5 billion, while Cognizant stands at $35.01 billion—barely half, despite generating more revenue. Cognizant’s shares, listed on Nasdaq since 1998, trade at a price-to-earnings (P/E) ratio of 16.6, far below the 18–25 range of its Indian peers such as TCS, Infosys, HCL Technologies, and Wipro.
This valuation gap—what experts call an arbitrage opportunity—is precisely what Cognizant aims to capture by listing in India.
“India is always a very richly valued market compared to global markets,” notes market veteran Shankar Sharma, founder of GQuant Investech. “If the 2000 tech boom hadn’t ended abruptly, several US-based Indian entrepreneurs would have listed their companies here 25 years ago.”
Why Cognizant Wants to List in India
Cognizant’s India listing plan, revealed alongside its September-quarter results, appears driven by a blend of strategic, financial, and symbolic motives:
- Unlocking Valuation Potential
Analysts believe the listing could help Cognizant bridge its valuation gap with Indian peers. “Value unlocking – better valuations,” said Yogesh Aggarwal, head of research at HSBC India. - Accessing India-Centric Funds
A dual listing would enable Cognizant to attract investments from domestic mutual funds and India-specific institutional investors who are currently barred from investing in its Nasdaq-listed stock.As a Chennai-based analyst noted, “Cognizant will now be able to access India-centric funds, which could further improve its valuations.”
- A Hedge Against the AI Disruption
Beyond valuation, the company’s decision is influenced by the fast-changing technology landscape. Phil Fersht, CEO of HFS Research, highlights that Generative AI is compressing margins across the IT sector. “A listing in India gives Cognizant fresh financial flexibility to invest in AI, automation, and upskilling—while signalling its deep commitment to India as a strategic hub,” he said.
From Chennai to Nasdaq — and Back Again
Cognizant’s story is deeply intertwined with India’s IT revolution. Founded in 1994 as a 175-member in-house software division of Dun & Bradstreet, it spun off two years later to become an independent firm. By 1998, it was listed on Nasdaq, marking one of the earliest instances of an India-origin IT company debuting on a US exchange.
Ironically, Cognizant’s potential India listing would represent a reversal of history—a homecoming of sorts for a company that once symbolized India’s emergence as a global IT powerhouse.
Its big break came during the Y2K crisis, when it helped companies worldwide fix the notorious “millennium bug.” Later, under CEO Francisco D’Souza, Cognizant took bold bets during the 2008 financial crisis, reinvesting in growth while competitors cut costs. The strategy paid off spectacularly: revenue grew 16% in 2009 and 40% in 2010, far outpacing TCS and Infosys.
But momentum slowed over the next decade as attrition, deal losses, and leadership churn hit performance. S. Ravi Kumar, who took over as CEO in 2023, has since steered a cautious turnaround focused on acquisitions, automation, and AI-driven efficiency.
Performance and Margins: The New Balancing Act
In the most recent quarter, Cognizant reported $5.42 billion in revenue, up 3.2% sequentially and 7.3% year over year, marking its best growth in four quarters. It also raised its full-year revenue guidance to $21.05–$21.1 billion, or up to 6.9% annual growth—the third straight guidance upgrade.
However, its operating margin of 14.7% still lags behind TCS (24.3%) and Infosys (21.1%). This gap underscores the need for deeper structural change—something a successful India listing and fresh capital infusion could accelerate.
The company’s leadership has acknowledged that the dual listing remains a “long-term project,” subject to market conditions. But analysts like those at BMO Capital Markets see the move as potentially transformative:
“This could further support the shares, and we await further details at this juncture,” they wrote in an October note.
An India Listing Amid Global Shifts
Cognizant’s India listing plan comes at a time when global IT firms face twin pressures: slowing demand for discretionary tech spending and the deflationary impact of generative AI. Yet, India’s equity markets remain resilient—offering higher valuations and deep investor appetite for technology stories.
If successful, Cognizant would join Infosys and Wipro as the only IT giants with dual listings. It would also follow the footsteps of Hexaware Technologies, which went public in February 2025, and Happiest Minds, listed in 2020—both of which have seen strong post-listing performance.
A Strategic and Emotional Return
For Cognizant, an Indian listing would not just be a financial event—it would be a statement. The company that once symbolized India’s talent exporting success now returns to seek recognition from the very market that shaped it.
With over 241,500 of its 349,800 employees based in India, Cognizant’s operational heart has always remained there. A domestic listing would finally align its market identity with its workforce and heritage.
Conclusion: The Second Coming of Cognizant
As Cognizant weighs its India debut, it stands at the intersection of heritage and opportunity. The potential listing promises valuation gains, investor diversification, and renewed relevance in a fast-evolving tech landscape.
But beyond numbers and multiples, the move carries deep symbolism—an acknowledgment that the company’s future, much like its past, is inseparable from India.
If all goes as planned, Cognizant’s return to Indian bourses could not only reshape its fortunes but also rewrite the narrative of global IT firms rediscovering their roots.
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