Weaker rupee boosts IT revenues by up to 6% in FY26, supports margins

The decline of the Indian rupee through the first three quarters of FY26 has boosted the reported revenue figures of India’s largest five information technology companies by 4-6%, even as the discretionary spending has remained muted.

The falling rupee has also provided an average of 40-60 basis points of support to operating margins. The Indian rupee has fallen about Rs 4.2 against the US dollar so far in FY26. As most Indian IT companies earn a large portion of their income overseas, particularly in the United States and Europe, this depreciation has inflated rupee-denominated revenue and profit figures in quarterly results.