Cautious narrative, sobering outlook: Top IT companies’ results trail expectations amid tariff woes
The Hindu
TCS, Infosys and Wipro disappointed with their March quarter and full year FY25 scorecards on multiple counts.
India's top-rung IT services companies TCS, Infosys and Wipro disappointed with their March quarter and full year FY25 scorecards on multiple counts and collectively signalled heightened caution up ahead, as macro-uncertainties compounded by global trade woes eroded sentiments and weighed on business outlook.
The overhang of macro concerns reflected on several fronts, from muted outlook to hesitation to commit upfront on wage hikes, as management commentary from India's billion-dollar IT powerhouses remained largely sobering in the just-ended quarter.
Hiring trends fared a tad better. TCS, Infosys, and Wipro cumulatively added 1,438 employees between Q3 and Q4 FY25, marking a shift, and indeed a reversal, from declines of over 900 seen in the previous quarter.
With US tariff posturing swiftly resetting global trade dynamics, the tone of business commentary in Q4 was punctuated with references to underlying uncertainties and caution.
"The global industry environment remained uncertain for most of the year and the recent tariff announcements have only added to that... Even though the underlying demand for tech reinvention remains strong, clients are approaching it more cautiously," Wipro CEO and Managing Director Srinivas Pallia said during the recent earnings' conference.
Market watchers say the industry is navigating a complex landscape, balancing growth ambitions with strategic caution. Attention will now turn to other IT companies that are slated to announce their results in the coming days.
For now, the US-induced tariff shocks and President Donald Trump's shifting trade policies have dashed any hopes of a recovery, and its overhang is visible on subdued financial metrics, and outlook within industry and beyond.
U.S. President Donald Trump to announce Federal Reserve chair nominee on January 30, amidst tensions with current chair Jerome Powell over interest rates.
Critical minerals are pivotal in energy transition, posing challenges for affordability and supply chains, warns CEA in Economic Survey.
The Economic Survey urges fiscal flexibility for the Centre while warning States about deteriorating financial conditions due to rising deficits.
Economic Survey highlights fodder shortages as key challenge for India's livestock and fisheries sectors, impacting growth and production costs.
The 2025-26 Economic Survey argues that prioritizing economic growth over immediate carbon cuts is essential for sustainable climate adaptation.
India's internet user base reaches 958 million, with 57% from rural areas, highlighting rapid digital adoption across the country.
The Economic Survey reveals a decline in agricultural growth to 3.5% in 2025-26, despite steady foodgrain production increases.
Economic Survey 2025-26 warns unconditional cash transfers risk state finances, impacting fiscal sustainability and medium-term growth.
Economic Survey 2025-26 advocates for tax rationalization on debt-assets to enhance investment in corporate bonds and savings.
Restrictions may also be levied on marketing of infant and toddler milk and beverages to tackle rising obesity
Commercial Vehicles major Tata Motors Ltd. (TML) for the third quarter ended December 31, 2025 reported a 48% fall in consolidated net profit to ₹705 crore as compared with ₹1,355 crore in the year ago period due to one-time impacts of Labour Code and de-merger.
India’s energy gap between supply and demand has dropped to nil by November 2025
India's pharma industry shifts to value-driven approaches, focusing on complex generics, innovation, and expanding medical device exports.