India’s top IT services firms by market cap

The shares of some big Indian information technology (IT) services firms have been on a downward spiral after US-based sector bellwether Accenture last week gave a reality check by forecasting slowing revenue growth in its guidance for the year ahead.

The shares of the Nasdaq-listed Accenture had slid 9% on Thursday, 21 March, after it said annual revenue may grow in the range of 1-3% against its earlier projection of a 2-5% growth.

In its analysis for the fiscal year that ends on Sunday, 31 March, Indian IT industry lobby Nasscom had said that sectoral revenue may grow by $9 billion to $254 billion, indicating a 3.8% year-on-year (y-o-y) expansion.

Nasscom foresees IT services exports in this fiscal to hit $200 billion, a 3.3% y-o-y growth, and the domestic tech sector revenues to cross $54 billion at a 5.9% y-o-y run rate.

Europe, Asia-Pacific, manufacturing, retail and healthcare are emerging as the key growth markets for the industry, Nasscom said, while highlighting that the uncertainty around geopolitical disturbances continues to remain a key worry.

Here is a look at the top 10 IT services companies in India based on market capitalization:

1. Tata Consultancy Services Ltd (TCS)

Market cap: $169 billion (₹14,05,000 crore)

Chief executive: K. Krithivasan

Tata Sons Ltd, the promoters of Mumbai-headquartered Tata Consultancy Services Ltd, this month offloaded 20 million shares, or a 0.6% stake in the company, in a block deal for about ₹9,000 crore. Markets were expecting the promoters to sell more stake to raise capital for new ventures.

Revenues for the IT solutions provider on a standalone basis have been growing steadily in the past five years, with net profit also picking up after a brief hiccup in 2021. Based on the ratings of 41 analysts, about 58% have a buy rating on the stock, with 23% hold and 20% sell rating, as on 27 March.

Last week, TCS signed a multi-million dollar deal (financial details were not disclosed) to transform the IT infrastructure at Denmark-based architecture firm Ramboll. The deal comes after TCS inked an agreement with digital connectivity communication provider Nuuday–another Denmark-based firm–in another multi-million dollar deal, the financial detail of which were not disclosed.

The IT services firm offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through its global network delivery model across sectors including telecom, retail and distribution, banking and financial services, and insurance.

TCS reported a 3.18% increase in revenue to ₹50,844 crore in the December quarter against ₹49,275 crore in the comparable period of the previous fiscal, while net its profit rose 0.3% y-o-y to ₹10,753 crore.

2. Infosys Ltd

*Market cap: $75 billion (₹6,25,000 crore)

Chief executive: Salil Parekh

Infosys co-founder Narayana Murthy this month gifted 1.5 million shares worth over ₹240 crore to his four-month-old grandson Ekagrah Rohan Murthy. Murthy’s wife, Sudha, recently took oath as a Rajya Sabha member of Parliament. Murthy’s daughter, Akshata, who has a 1.05% stake in Infosys, is married to British Prime Minister Rishi Sunak.

Infosys began the new year with two new deal wins. In February, it announced a strategic collaboration with Pacific International Lines (PIL), a Singapore-based shipping company. This collaboration aims to accelerate PIL’s digital transformation initiative and create a positive impact for their key stakeholders across the shipping and logistics ecosystem, it said. The PIL deal came two weeks after it announced a seven-year strategic collaboration with Musgrave, Ireland’s leading food retail, wholesale and foodservice company.

This week, it announced a strategic collaboration with Germany-based Handelsblatt Media Group as the media group’s AI digital innovation partner.

Infosys offers end-to-end business solutions, including consulting and systems integration. The company has Finacle, a banking product that offers solutions to address the core banking, mobile banking, and e-banking needs of retail, corporate, and universal banks globally, as well as areas such as cloud computing, enterprise mobility, and sustainability.

For the December quarter of FY2024, Infosys reported a 0.3% increase in revenue to ₹32,491 crore from a year ago, while its net profit grew 5.5% year-on-year to ₹6,552 crore.

3. HCL Technologies Ltd

*Market cap: $50 billion (₹4,18,000 crore)

Chief executive: C Vijayakumar

HCL Technologies, a global IT services company, recently announced its partnership with American software company ServiceNow to offer Gen AI-led solutions to drive efficiency and reduce cost.

Last month, the company announced it would expand its longstanding collaboration with Intel Foundry to co-develop customized silicon solutions for semiconductor manufacturers and others.

In November last year, it had announced a $2.1 billion tie-up with Verizon Business to offer managed network services to the latter’s global enterprise customers.

The company offers a portfolio of services, including software-led IT solutions, remote infrastructure management, engineering, and business process outsourcing services.

During the announcement of its results for the December quarter, the company said it would continue investing in AI, specifically Generative Al, and cloud-native capabilities across products and services.

The company posted a 1.07% rise in revenue to ₹12,531 crore in December quarter against ₹12,398 crore a year ago, while net profit jumped 4.8% to ₹3,349 crore from the year-ago quarter.

4. Wipro Ltd

*Market cap: $30 billion (₹2,50,000 crore)

Chief executive: Thierry Delaporte

Wipro has been an expansion spree this year. In February, the company acquired insurance technology firm Aggne Global and an affiliate company in a $66 million deal that will help it expand into the property and casualty insurance space.

Earlier this month, it tied up with General Motors (GM) and global automotive supplier Magna to build a business-to-business sales platform for buying and selling automotive software. The joint venture, dubbed SDVerse, will offer “a matchmaking platform” for buyers and sellers of embedded automotive software.

The firm also appointed Anne-Marie Rowland as chief executive of Capco, its UK-based independent financial services management consultancy firm, three years after it was bought for $1.45 billion.

Wipro Ltd provides IT services, including business process outsourcing (BPO) services, globally and has other businesses such as IT products, consumer care lighting, and infrastructure engineering.

Wipro reported a 4.46% decline in revenues to ₹16,316 crore in the December quarter from ₹17,079 crore a year ago. Its net profit tumbled 16.16% to ₹2,023 crore during the December quarter.

5. LTIMindtree Ltd

*Market cap: $17.5 billion (₹1,46,000 crore)

Chief executive: Debashis Chatterjee

Larsen and Toubro Infotech, the tech arm of engineering giant Larsen and Toubro Ltd, merged with Mindtree in May 2022 to form LTIMindtree.

Earlier this month, LTIMindtree acquired a 51% stake in a new JV with Global Digital Integrated Solutions Co., a subsidiary of Saudi oil company Aramco. The JV will offer information technology services in the Middle East and North Africa. The aim of the proposed joint venture company is to develop a regional hub of IT services primarily in Saudi Arabia, and, at a later stage, the MENA Region.

LTIMindtree says it is the digital transformation partner to more than 700 clients, and has more than 82,000 staff across 30 countries.

It offers offshore outsourcing application maintenance, application development, enterprise application integration, data warehousing and business intelligence. It also serves manufacturing, banking and securities, insurance, utilities, communication, and embedded systems industries.

The company posted a 4.5% rise in revenue to ₹8,701 crore in the December quarter against ₹8,326 crore a year ago. Net profit, in turn, jumped 17.61% to ₹1,135 crore.

6. Tech Mahindra Ltd

*Market cap: $14.7 billion (₹1,23,000 crore)

Chief executive: Mohit Joshi

Pune-headquartered Tech Mahindra Ltd, part of the Mahindra Group, offers IT services and software solutions primarily to the telecommunications sector, apart from digital transformation and business re-engineering services. Its list of clients ranges from telecom service providers, telecom equipment makers, and independent software vendors.

Last week, the company informed the exchanges about the merger of its two wholly owned subsidiaries based in the US–Tech Mahindra Americas and Born Group–to reduce compliance risks and optimize operational costs.

Last month, the company announced the acquisition of Orchid Cybertech Services Inc, a Philippines-based customer experience firm, through its wholly owned subsidiary. The same month, it signed a memorandum of understanding at the Mobile World Congress 2024 in Barcelona with Taiwanese electronics manufacturing giant Pegatron to develop private 5G solutions for global enterprises.

Tech Mahindra reported a 4% decline in revenue to ₹10,551 crore in the December quarter from ₹10,988crore in the comparable period of the previous fiscal year, while net profit tanked 60% as the company’s fiscal health was affected by seasonal factors, challenges in the communications sector, and muted discretionary slient spending in some key markets.

7. Oracle Financial Services Software Ltd

*Market cap: $1 billion (₹76,300 crore)

Chief executive: Makarand S. Padalkar

Oracle Financial Services Software Limited, formerly known as i-flex Solutions Limited, is a subsidiary of Texas-based Oracle Corporation. The company provides services to capital markets, banking, wealth management, corporate banking, payments, retail banking, and risk and compliance domains, and boasts 900 customers in over 145 countries.

Oracle Financial was a part of Citicorp’s (now Citigroup) wholly owned subsidiary called Citicorp Overseas Software Ltd.

The firm’s net profit jumped 69% year-on-year to ₹740.8 crore or $88.89 million in the December quarter from ₹437.3 crore a year ago. Revenue grew 26% in the December quarter to ₹1,823.6 crore or $218.81 million from ₹1,449.2 crore a year ago.

8. Tata Elxsi Ltd

*Market cap:  $575 million (₹48,000 crore)

Chief executive: Manoj Raghavan

Bengaluru-headquartered Tata Elxsi is a global design and technology services company that caters to the healthcare, automotive, broadcast, communications, and consumer electronics industries, supported by a network of design studios, development centers, and offices worldwide.

This week, Tata Elxsi and Germany-based Dräger, a global leader in medical and safety technology, announced a tie-up to advance critical care innovation in India. Dräger plans to expand its research and development focus by setting up an offshore development center at Tata Elxsi’s facility in Pune.

Last month, it tied up with Telefonica, a telecom firm with a presence in over 15 countries across Europe and Latin America, to launch a cloud-native infrastructure management system based on ETSI Open-Source MANO (OSM), streamlining network operations with unprecedented agility.

For the December quarter, the company reported a net profit of ₹204.6 crore, up 5% from ₹194.9 crore  in the year-ago quarter, on a revenue of ₹914.23 crore, up 11.8% from a year ago.

9. MphasiS Ltd

*Market cap: $540 million (₹45,000 crore)

Chief executive: Nitin Rakesh

MphasiS says its purpose is to become the “driver in a driverless car” for global enterprises by applying next-generation design, architecture, and engineering services to deliver scalable and sustainable software and technology solutions.

Last month, it announced the launch of DeepInsights Doc AI, an intelligent document processing solution powered by generative AI that will help enterprise clients extract context-specific information from documents, regardless of their format or layout, and integrate it with downstream IT systems to generate actionable insights.

Mphasis has been involved in advancing generative AI innovation in recent years. Earlier this year, it initiated a strategic partnership with enterprise conversational AI platform Kore.ai. It has also set up a specialized AI business unit, focusing on delivering tailored AI-powered solutions to meet its customers’ diverse needs.

The company primarily provides software solutions for the insurance, banking, capital market, communication, and entertainment industries.

Mphasis reported consolidated net sales were at ₹3,337.95 crore or $441 million in Q3 2023, down 4.8% from ₹3,506.21 crore in December 2022, and the company’s quarterly net profit at ₹373.60 crore or $44 million in December 2023, down 9.38% from ₹412.27 crore in December 2022.

10. KPIT Technologies Ltd

*Market cap: $480 million (₹40,000 crore)

Chief executive: Kishor Patil

KPIT Technologies is an Indian multinational company involved in providing engineering research and development solutions for automotive, manufacturing and energy companies. The company is headquartered in Pune and has development centers spread across Europe, the US, Japan, and China. The company derives revenues primarily from engineering services, which include design engineering services, embedded software development with its related services, and the sale of licenses and products.

The company last November had acquired a 13% stake in N-Dream AG (N-Dream), a cloud-based game aggregation platform, based in Switzerland, for $3.25 million, with an option to increase the shareholding further.

KPIT Technologies posted standalone revenues of ₹522.02 crore or $62.6 million in the December quarter, up 37.4% from ₹379.94 crore in the year-ago quarter, with a net profit of ₹84.11 crore or $10 million, up 26.57% from ₹66.45 crore a year ago.

(*as on 28 March 2024)