Wipro expects a weak start to FY27, guiding for a sequential revenue change of -2 per cent to flat in constant currency (cc) for Q1. Infosys has projected a modest 1.5 per cent to 3.5 per cent year-on-year growth in cc, indicating a gradual recovery, while HCLTech has forecast 1 per cent to 4 per cent revenue growth in cc for the full year.
Providing context to its guidance, HCLTech’s MD & CEO C. Vijayakumar said in the management commentary that the company saw an impact in March, which was reflected in lower Q4 revenue.
“Two large telecom clients cut down discretionary spending for this calendar year. I see this continuing till the end of the year. A few SAP programs were discontinued, which will also have an impact. We are seeing some softness in Europe, while the US is robust except for a specific client situation. For FY27, we see a 0.5 per cent reduction due to two clients — one in manufacturing and the other in retail. We continue to have a high wallet share, but their business pressures have reduced significant spending. All of this is driving the overall guidance,” he shared.
The company’s confidence is calibrated, with the lower end of the guidance factoring in continued softness. It has baked in a 2–3 per cent deflation impact, and barring this, sees 2–5 per cent growth as reasonable in the current uncertain environment. The guidance excludes any acquisitions, which are expected to close during the year and will be called out separately.
Meanwhile, Infosys CFO Jayesh Sanghrajka explained during the company’s earnings conference call that at the lower end of its guidance, the company has assumed higher deterioration in the environment, and an improved environment at the upper end. Last year, the company had little clarity about how the environment would change and how tariff changes would impact client behavior. Today, however, there is better clarity.
Infosys CEO and MD Salil Parekh elaborated, “On the guidance, positive changes include the growth of AI services, where we see good traction. We have started a programme where we are working with large companies with a smaller footprint than Infosys. We are expanding that nicely. Then we saw the large deals; net new was 55 per cent, and this will contribute to this financial year significantly. On the other hand, there are productivity benefits our clients are looking for with AI on the existing portfolios. Then there are a few situations with manufacturing, Europe, with on-site mix, and some technical factors. So, factoring in the adds and offsets, that’s how we arrived at the guidance. The environment is good, and our large deal pipeline remains strong.”
From an industry perspective, Sidhant Rastogi, President, Zinnov, noted that guidance is visibly conservative for Indian tier I companies. Infosys guided FY27 growth against a $14.9 billion deal book with 55 per cent net-new. Both Infosys and HCLTech have an established pattern of under-guiding and delivering at the upper end, typically by 50 to 150 basis points.
“Our base case is that the tier-1 growth cohort — TCS, Infosys, HCL, Tech Mahindra delivers 3.5 to 5 per cent cc growth in FY27, which is above management midpoints but below the 7 per cent the cohort ran at three years ago. Accenture has already raised its FY26 guidance to 3 to 5 per cent local currency, which is a useful anchor for where the Indian tier-1s will likely exit. Conservatism is a defensive posturing against tariffs and client-specific risks, not a real read on demand,” he said.
On the other hand, Piyush Goel, CEO & Founder of Beyond Key, argued that present guidance expectations are more realistic than conservative.
“Executives make decisions in a world of low visibility, especially for long-term cycles, because of macro uncertainties and uneven discretionary spending. This results in an approach that considers risks of execution, slower ramping up, and customer decision delays rather than focusing on upside potential. At a time of uncertain demand, it makes sense to provide moderate guidance and give room for changes in conversion rate or discretionary spend,” he stated.
Published on April 30, 2026
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