Revenue gains take time to materialise even as Indian IT sees strong bookings

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HCLTech reported a total contract value (TCV) of $3.25 billion in new deal wins in Q2, up from $2.4 billion in Q1

By Sanjana B

Updated - October 25, 2026 at 08:14 PM.

India’s top IT services firms continued to report healthy deal wins in Q2 FY27, but the conversion of contracts into revenue remains a challenge, with longer implementation cycles and client focus on cost optimisation delaying the payoff from strong bookings.

During the quarter, HCLTech reported a total contract value (TCV) of $3.25 billion in new deal wins in Q2, up from $2.4 billion in Q1. TCS reported an order book TCV of $9.6 billion, compared with $9.5 billion in the previous quarter. Infosys reported large deal wins with a TCV of $5.2 billion, of which 62 per cent was net new business. The wins included a mega deal valued at more than $2 billion, taking the company’s large deal TCV up from $3.6 billion in the previous quarter.

Wipro’s total bookings stood at $2,595 million, down 22.9 per cent QoQ cc, while large deal bookings fell 58.6 per cent cc to $674 million. Tech Mahindra reported a TCV of $1,023 million, compared with $1,078 million in Q1, while its deal wins over the last 12 months rose 34.8 per cent year-on-year to $4.27 billion during the quarter.

During the company’s earnings conference call, TCS CEO and MD K Krithivasan said the company was confident of sustaining its growth momentum in the medium term, supported by its deal TCV, pipeline and ongoing client conversations.

Meanwhile, Wipro CEO and MD Srini Pallia said during the call that some deals were pushed into the current quarter as the contracts could not be signed on time in Q2.

“Both deals we could not sign will get signed. Our pipeline is robust. In addition to these two deals, we have a very strong pipeline for Q3. We are optimistic on the deals we have currently, which should give us revenue upside in Q4 as well. The focus currently is to close Q3 deals,” he said.

Despite demand returning this quarter and healthy deal signings, the top 5 firms reported close to $20 billion of bookings, less than Accenture’s $22 billion, Praveen Bhadada, CEO & Managing Director, Neovay Global, observed.

“Conversion is the issue. Infosys cut guidance in a strong deal quarter, Tech Mahindra’s twelve-month deal wins rose against 6.8% revenue growth, and TCS signed $9.6 billion but grew 0.2% sequentially. Today’s large deals run 5-10 years, focus on vendor consolidation and cost reduction, and pass AI productivity savings back to clients,” he said.

Biswajit Maity, Sr Principal Analyst at Gartner, noted that large-deal momentum remained strong during the quarter, reflecting continued demand for cost optimisation, modernisation, managed services and AI-led transformation initiatives.

“While strong deal activity is starting to support revenue growth, the impact is gradual because many large programs are still in the early stages of implementation. The nature of large deals is also evolving. Enterprises are increasingly signing outcome-based and AI-enabled contracts rather than traditional labour-based agreements, which means revenue is often realized over a longer period and tied to business outcomes, platform adoption, or AI usage,” he highlighted.

Maity said deal velocity has improved, with organisations accelerating AI, automation and modernisation projects backed by clear business cases. However, clients remain cost-conscious, favouring value-based pricing and flexible commercial models. While strong bookings signal demand, longer conversion cycles mean revenue benefits are likely to materialise over the coming quarters.

Published on October 25, 2026

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