India’s large-cap companies delivered a stable but cautious performance in the March quarter, with management commentary across sectors pointing to selective growth, weak discretionary demand and a growing structural shift driven by artificial intelligence, according to a compilation of earnings call highlights by Bajaj Broking.

Growth holding, but visibility remains limited

Across sectors, companies indicated that growth continues but lacks broad-based momentum.

At Infosys, management said FY26 revenue growth of 3.1% in constant currency was delivered within guidance, with a “solid exit trajectory” in Q4. However, it flagged delayed decision-making and a cautious demand environment in key sectors such as manufacturing and retail.

Similarly, HCL Technologies noted that the demand environment was marked by “contraction in discretionary spending in traditional areas,” even as AI-led programs provided some offset.

AI drives deals, but pressures pricing

While artificial intelligence is emerging as the biggest growth driver, companies acknowledged that it is also reshaping revenue models.

Infosys said “AI deals carry better pricing and margins,” but added that “productivity gains from AI are largely being passed through to clients due to competitive market intensity.”

At HCL Technologies, management went further, estimating a “2–3% per annum” revenue headwind from AI-driven deflation in traditional services.

Meanwhile, Tata Consultancy Services reported strong deal momentum, with Q4 total contract value at $12 billion, supported by “AI-led modernization and digital core transformation.”

Hiring models begin to shift

The impact of AI is also beginning to reflect in workforce strategies.

Wipro said headcount additions remain limited, indicating a “deliberate de-linking of headcount from revenue growth as AI-led productivity gains take hold.”

The company added that the traditional IT services “pyramid structure” could evolve toward a more “top-heavy” model as automation reduces the need for large junior teams.

Banks shift focus to quality over growth

In financial services, lenders are prioritising asset quality and profitability over aggressive expansion.

HDFC Bank said it is “consciously avoiding aggressive growth to match system trends,” focusing instead on return on assets and risk-adjusted growth.

Similarly, ICICI Bank indicated that margins are expected to remain “range-bound,” with deposit repricing offsetting pressure on yields.