IT sector income share: High 5 Indian IT exporters lose income share as mid-tier firms rise

ET Intelligence Group: The share of prime 5 IT exporters within the complete sector’s income fell by over 100 foundation factors year-on-year to 81.3% within the March 2025 quarter. It has steadily fallen over the previous few quarters to hit the bottom degree in a minimum of 29 quarters or since March 2018 quarter amid rising traction proven by a choose mid-tier IT firms, together with Coforge, Hexaware, and Persistent Methods. The tier-II firms have been reporting greater income and revenue progress year-on-year over the previous a number of quarters in contrast with the bigger friends led by the shifting focus of shoppers to brief time period initiatives from bigger multi-year transformational offers. The highest 5 IT exporters embody TCS, Infosys, HCL, Wipro and Tech Mahindra ranked based mostly on annual revenues. Pattern of tier-II firms embody 79 mid and small tier IT firms.

The highest-tier firms have additionally reported decrease share of web revenue over the current few quarters. In June quarter, it fell to 86.3% from 87.3% in year-ago quarter. The mid and small tier firms have gained lead over prime firms in income and revenue. “Choose giant and mid-tier firms are gaining share versus the standard narrative of enormous firms consolidating out smaller ones,” talked about Kotak Securities in a sector report.

International shoppers of Indian IT exporters have been cautiously assessing the geopolitical situation, which has delayed their resolution making course of over the previous few quarters, and in flip affecting the mission ramp ups.

The pattern of mid and small IT firms reported higher income progress than top-tier firms in every of 15 quarters to March 2025. Their web revenue progress was greater in 12 out of previous 17 quarters since March 2021.