India’s IT firms hold margins as AI gains offset cost pressures

India’s major IT services companies largely maintained or improved operating margins in the July-September quarter, as AI-led productivity measures and tighter cost controls helped offset subdued client spending, pricing pressure and economic uncertainty in key overseas markets.

Tata Consultancy Services (TCS) reported an operating margin of 24%, unchanged from the previous quarter, while Infosys held its margin at 21%. HCLTech’s margin rose 131 basis points sequentially to 18.2%, Tech Mahindra’s increased 40 basis points to 14.8%, and Wipro’s climbed 50 basis points to 16.5% in Q2.