deepakk040720@gmail.com India’s top IT firms delivered contrasting results in Q2 FY 26, spotlighting both emerging strength and lingering fragility in the sector. Infosys showed a healthy rebound, while Wipro struggled with revenue pressures. Still, the broader industry is seeing early signs of revival as clients warm up to AI investments and digital transformation initiatives.
Infosys Posts Growth : Healthy Surge in Profit & Revenue
Infosys recorded a net profit of ₹7,364 crore in Q2, up 13.2% year-on-year, largely fueled by strong deal wins and consistent margin control. Business Standard+2Financial Express+2
Revenue from operations rose to ₹44,490 crore, marking a growth of 8.6% YoY. Business Standard In constant currency terms, growth was more modest but still positive. Moneycontrol+1
Large deal bookings were a highlight: Infosys secured $3.1 billion in large contracts, of which 67% were net new wins. mint+2Financial Express+2 The company also announced a ₹23 interim dividend per share. Moneycontrol+1
Leveraging this momentum, Infosys raised the lower bound of its FY 26 revenue guidance (in constant currency) to 2–3%, from the earlier 1–3% range. Business Standard+2mint+2 CEO Salil Parekh emphasized that although macro uncertainties remain, strong deal traction gives confidence. mint+1
Infosys also strengthened its talent pool: it added 8,000 net employees and has recruited over 12,000 freshers in the first half of the fiscal year. Financial Express+1 The company’s operating margin held steady at 21%, indicating resilience amid cost pressures. Financial Express+1
Wipro: A Modest Performance Amid Challenges
Wipro’s Q2 results were more subdued and reflective of headwinds in demand. Its gross revenue stood at ₹22,697 crore (≈ $2,556.6 million), which reflected a YoY increase of ~1.8%, and QoQ growth of 2.5%. Financial Express+3Wipro+3Financial Express+3
However, its IT services revenue tells a tougher story: in constant currency terms, it declined 2.6% YoY even though it grew 0.3% QoQ. Wipro+1
Wipro’s net profit was ₹3,246.2 crore, up 1.2% YoY, but down 2.5% QoQ, reflecting softness in margin and operational challenges. Wipro+2The Economic Times+2 After accounting for a one-time provision related to a customer bankruptcy, its adjusted IT services margin stood at 17.2%. Wipro+2mint+2
On the positive side, Wipro is betting on AI and digital acceleration. CEO Srini Pallia stated that AI-led deal pipelines are showing strength, and that clients are now moving from AI proofs-of-concept to full-scale deployment across business workflows. The Economic Times+2Business Standard+2
Wipro also disclosed a strong deal booking value. In the first half of FY 26, bookings reached $4.688 billion, with large deals worth $2,853 million, up 90.5% YoY. Wipro+2mint+2
For Q3, Wipro guided its IT services revenue to be between $2,591 million and $2,644 million, implying a possible –0.5% to +1.5% growth in constant currency. The Economic Times+3Wipro+3Financial Express+3
Signs of Revival: AI & Deal Momentum Fueling Optimism
The contrast between Infosys’s strong quarter and Wipro’s muted performance speaks to the uneven recovery of demand in the IT sector. But underlying trends hint at a broader shift:
- Many clients are still holding back discretionary spend, but interest in AI, automation and digital transformation is reigniting technology budgets. Business Standard
- Analysts refer to the quarter as a “green-shoots” moment for the industry, as cautious but consistent deal wins suggest stabilizing demand. Business Standard
- Vertical strength from financial services, manufacturing, and digital modernization helped buffer headwinds in other sectors like retail and consumer. Outlook Business+4Financial Express+4Business Standard+4
Still, the path ahead contains multiple risks: macro volatility, currency fluctuations, delayed client approvals, and geopolitical headwinds. But with AI now forming the backbone of enterprise investment, Indian IT firms may be better positioned to ride through uncertainty.
What to Watch in Upcoming Quarters
- Performance in H2 FY 26: Whether growth in the later half can sustain the momentum from this quarter under tougher comparatives.
- Margin trends: As cost pressures, attrition, and wage inflation bite, margin management will be key.
- New large deals: The ability to maintain or improve large deal bookings and execute them will test operational agility.
- Sector diversification: Gains in AI, analytics, cloud, and digital engineering will help offset sluggish demand in legacy services.
- Talent strategy: How companies recalibrate hiring, reskilling and cost optimization will define their competitiveness.
