Indian IT faces AI reset as top 5 firms post mixed FY26

India’s top five IT majors — TCS, Infosys, HCLTech, Wipro, and Tech Mahindra — closed FY26 at a critical inflection point, navigating a structural reset driven by macroeconomic headwinds, West Asian geopolitical risks, and the dual-edged sword of Artificial Intelligence (AI).

Earnings analyses reveal a sector transitioning rapidly away from traditional effort-based delivery. AI-driven productivity is causing revenue deflation in legacy services. However, this near-term compression is being offset by a multi-billion-dollar surge in new AI-native engagements, prompting a decisive shift in client priorities from sheer scale to modular, outcome-driven contracts.