Infosys Ltd and Wipro Ltd—the second and fourth largest IT firms in India—delivered contrasting results in the September quarter. Infosys outperformed expectations, boosted by strong growth from its banking clients and steady operational discipline, while Wipro struggled with slowing momentum and profitability pressures. The broader Indian IT landscape remained mixed, reflecting the cautious optimism of the industry amid global uncertainties.
Infosys: Raising the Bar in a Tough Market
Infosys ended the September quarter with $5.08 billion in revenue, a 2.66% rise quarter-on-quarter and 3.77% increase year-on-year. The growth was led primarily by its banking, financial services, and insurance (BFSI) vertical, which continues to be the company’s strongest revenue driver.
In a market still feeling the pinch of inflation and constrained job creation, Infosys’s leadership maintained a cautious tone. CEO Salil Parekh described the global macro environment as “uncertain,” noting varying growth patterns across key markets. Despite this, Infosys upgraded the lower end of its full-year revenue guidance to 2–3% growth in constant currency, signaling confidence in its near-term trajectory.
The company’s operating margins improved 20 basis points to 21%, reflecting efficient cost management and increased offshoring. Additionally, Infosys added 8,203 employees, expanding its total headcount to nearly 332,000, signaling readiness for upcoming large contracts—including the recently won $1.6 billion NHS deal in the UK.
Wipro: Struggling to Regain Momentum
Wipro’s September-quarter results painted a more subdued picture. Its revenue rose marginally by 0.65% sequentially to $2.6 billion, but declined 2.1% year-on-year. While the BFSI segment offered some relief, most other verticals remained sluggish. CEO Srini Pallia admitted that no “dramatic uptick” in discretionary spending was expected, although he emphasized growing client interest in AI-related projects.
The company’s operating margin slipped by 10 basis points to 17.2%, impacted by a one-time client bankruptcy expense. Excluding this, Wipro’s profitability was stable, but its net profit still declined 5.4%. Looking ahead, Wipro forecasted third-quarter revenues between $2.59 billion and $2.64 billion, a flat to slightly positive growth outlook, underscoring a cautious stance.
Comparing the Big Five: Divergent Fortunes
The September quarter results completed the earnings cycle for India’s Big Five IT firms—TCS, Infosys, HCLTech, Wipro, and Tech Mahindra. The data revealed a split performance:
| Company | Revenue ($ million) | QoQ Growth (%) |
|---|---|---|
| TCS | 7,466 | 0.61 |
| HCLTech | 3,644 | 2.79 |
| Tech Mahindra | 1,586 | 1.41 |
| Wipro | 2,604 | 0.65 |
| Infosys | 5,076 | 2.73 |
HCLTech emerged as another bright spot, recording the strongest growth of 2.79%, and maintaining robust guidance of 3–5% growth for the year. Meanwhile, TCS and Tech Mahindra posted modest gains but remained optimistic about the second half. Wipro and TCS, however, saw year-to-date revenue declines, breaking the usual trend where the first half of the fiscal year tends to perform better for Indian IT firms.
AI Ambitions: Divergent Strategies
Artificial intelligence dominated boardroom discussions this quarter. Infosys maintained a pragmatic approach, focusing on enterprise AI solutions that optimize costs and boost client growth across sales, marketing, and customer service. Parekh reiterated that Infosys was “comfortable with its AI strategy,” emphasizing selective and client-driven adoption.
In contrast, Wipro announced “Wipro Intelligence,” a comprehensive AI platform suite, marking its push into generative AI. HCLTech revealed $100 million in AI revenue last quarter—becoming the first Indian IT major to disclose such figures—while Tech Mahindra announced plans to build a 1-trillion-parameter large language model, showing its ambition to compete globally.
Headcount Trends: Infosys Expands, TCS Shrinks
Headcount dynamics across the Big Five highlighted diverging talent strategies. Infosys led the hiring race, adding 8,203 employees, followed by HCLTech (+3,489), Tech Mahindra (+4,197), and Wipro (+2,260). TCS, however, cut 19,755 jobs, aligning with its July layoff announcement. Analysts noted that Infosys’s steady hiring aligns with its strong deal pipeline and project ramp-ups expected in the coming quarters.
Analysts’ Take: Optimism for Infosys, Patience for Wipro
Market experts remain upbeat about Infosys’s resilience and adaptability. Amit Chandra of HDFC Securities called it “a good result in a tough environment,” expecting the benefits of deal wins to show by Q4 FY25 or Q1 FY26. In contrast, Manik Taneja of Axis Capital urged caution on Wipro, citing the need for more clarity on deal ramp-ups and backlog conversions.
Conclusion: Two Paths Diverge in India’s IT Landscape
The September quarter underscored a widening gap between India’s IT leaders. Infosys’s steady execution, rising margins, and strong deal wins highlight its ability to navigate global turbulence with measured confidence. Wipro, meanwhile, faces an uphill battle to reignite growth amid muted client spending and thinning profitability.
As the industry enters the second half of the fiscal year, the focus will be on how firms convert their AI narratives into measurable revenue streams—and whether Wipro can close the gap with its faster-moving peers. For now, Infosys’s playbook of cautious optimism and operational rigor stands out as a winning formula in uncertain times.
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