India’s largest IT services company, Tata Consultancy Services, reported annualised AI revenue of $1.8 billion, up 17.3 percent quarter-on-quarter, while announcing its Q3 FY26 dividends.
The figure captures revenues from AI-based business transformation across the value chain and sectors, and AI for modernisation, clarified Arthi Subramanian, Executive Director – President and Chief Operating Officer at TCS, during the company’s analyst call on Monday.
This is the first time TCS has reported AI revenues separately, as it pivots to an AI-led services company. During its annual investor day held in December 2025, TCS had reported $1.5 billion in annualised revenue coming from AI-related services, accounting for roughly 5 percent of its revenues.
“Despite a challenging and rapidly evolving market landscape, TCS is carving out a strong position in digital innovation and sustaining reliable business growth. The company’s AI services have shown good momentum, with annualised revenue from this segment reaching $1.8 billion, and strategic acquisitions further strengthening its capabilities,” said Biswajit Maity, Senior Principal Analyst at global research and advisory firm Gartner.
The company reported a consolidated revenue of Rs 67,087 crore for Q3 FY26, a nearly 4.9 percent increase year-on-year, marginally beating analyst estimates. However, the company’s net profit fell by around 14 percent on a yearly basis due to restructuring initiatives announced by the company in July 2025.
On the other hand, Indian software services company HCL Tech announced its Q3 results for the financial year, with advanced AI revenue growing to $146 million, a 19.9 percent increase quarter-on-quarter.
The company reported revenue growth of 13.3 percent year-on-year at Rs 33,872 crore for Q3 FY26. HCL Technologies’ net profit declined by 11 percent year-on-year to Rs 4,076 crore for Q3, owing to a one-time impact from the implementation of new labour codes. The company estimates that the impact was Rs 956 crore at EBIT and Rs 719 crore at net income for Q3 FY26.
“The strong revenue momentum in the quarter has enabled us to cross $15B in annualised revenues. Our new bookings were exceptionally high at $3B. Our Services revenue grew 1.8 percent QoQ in constant currency, driven by 19.9 percent QoQ growth in Advanced AI services. HCL Software revenue grew sharply by 28.1 percent QoQ and 3.1 percent YoY in constant currency, driven by seasonality and the data intelligence portfolio. We are well positioned to address evolving AI demand of our clients across industries and service lines,” said C Vijayakumar, CEO and Managing Director at HCL Tech, in a statement.
Analysts believe that HCL Tech’s strategy, which combines acquisitions and partnerships, will help it continue to grow its AI revenue stream. “What we observe is that large tech firms and hyperscalers are already seeing notable increases in AI-related revenue, and HCLTech is well positioned to drive similar growth. Gartner research indicates that AI-driven revenue will become an increasingly prominent part of future performance reports, and HCLTech’s strategy to scale commercial AI deployments aligns with this trend, positioning the company to capture emerging opportunities,” Shubham Rathore, Principal Analyst at Gartner, told Forbes India.
“We are optimistic that North America will return to previous levels,” said K Krithivasan, Chief Executive Officer and Managing Director, TCS, during the analyst call. He further added, “We find that customers are willing to look at RoI (Return on Investment)-based decision-making for new projects, and decision-making time has reduced.”
HCL Tech CEO Vijayakumar echoed similar sentiments, indicating that discretionary expenses were down for the quarter, though demand for business transformation continues to hold momentum.
TCS closed at Rs 3,243 per share on the NSE, rising 1.1 percent ahead of its Q3 results announcement. HCL Technologies closed at Rs 1,667 per share, rising 0.34 percent on the NSE at market close.
First Published: Jan 12, 2026, 21:32
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