India’s leading information technology services firms reported robust deal bookings for the June quarter, yet the pace of revenue conversion is slowing as clients increasingly demand phased execution and outcome-based pricing models driven by artificial intelligence adoption.
Tata Consultancy Services (TCS) topped the sector with $9.5 billion in total contract value, followed by peers Infosys, Wipro, HCLTech, and Tech Mahindra.
While the headline booking figures signal continued resilience in client demand, the structural shift in how these contracts are priced and delivered is creating a lag between signed deals and recognized revenue.
The delay in revenue realization is compounded by margin pressure, as AI-led outcome-based pricing often requires higher upfront investment and carries greater execution risk for service providers.
This dynamic contrasts with traditional time-and-materials models, where revenue recognition is more predictable and immediate.
Brokerages have forecast mixed results for the sector’s first quarter of fiscal 2027, citing intensifying structural headwinds.