Healthcare, BFSI supported IT growth in Q2 as technology and retail remained

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Q2 FY27 performance across verticals was mixed for India’s leading IT services companies, with growth varying significantly by segment

By Sanjana B

Updated - October 31, 2026 at 10:40 AM. | Bengaluru

In the technology vertical, TCS led with 4.8 per cent growth, followed by HCLTech at 5.9 per cent, Wipro at 7.1 per cent and Tech Mahindra at 6.7 per cen

Healthcare and life sciences recorded the strongest weighted growth among key verticals for Indian IT companies in Q2 FY27, followed by BFSI, although demand across technology and retail remained uneven.

Q2 FY27 performance across verticals was mixed for India’s leading IT services companies, with growth varying significantly by segment.

According to data from UnearthInsight, retail and consumer emerged as one of the stronger segments for HCLTech, Wipro and Tech Mahindra, which reported year-on-year (y-o-y) growth of 14 per cent, 6 per cent and 9.2 per cent, respectively. TCS and Infosys, however, reported declines of 1 per cent and 7.7 per cent in the segment.

In the technology vertical, TCS led with 4.8 per cent growth, followed by HCLTech at 5.9 per cent, Wipro at 7.1 per cent and Tech Mahindra at 6.7 per cent. Infosys was the outlier, reporting a sharp 17.3 per cent decline, indicating continued weakness in technology spending.

BFSI remained a relatively stable growth driver, with all five companies reporting positive growth. HCLTech led the segment with 7.1 per cent growth, followed by Tech Mahindra at 4.6 per cent and TCS at 3.9 per cent. Infosys and Wipro reported more modest growth of 2.1 per cent and 1.3 per cent, respectively.

In communications and media, Tech Mahindra recorded the strongest growth at 9.5 per cent, followed by Infosys at 4.1 per cent and TCS at 0.5 per cent. HCLTech reported a 2.1 per cent decline, while Wipro did not disclose comparable growth.

Manufacturing and energy saw positive growth at four of the five companies. Tech Mahindra led with 7 per cent, followed by TCS at 4.8 per cent, HCLTech at 3.9 per cent and Infosys at 2.9 per cent. Wipro was the exception, reporting a 6.6 per cent decline.

Healthcare and life sciences recorded the widest divergence. Infosys posted strong 32.5 per cent growth, well ahead of Tech Mahindra’s 6.2 per cent. TCS reported marginal growth of 0.5 per cent, while HCLTech and Wipro saw declines of 2.1 per cent and 6.5 per cent, respectively.

Overall, weighted by revenue, healthcare (+5.4 per cent) and communications (+3.5 per cent) grew fastest, but healthcare rests on Infosys Life Sciences (+32.5 per cent); excluding it, the vertical fell 1.2 per cent. Retail and consumer (+2.2 per cent) and technology (+2.7 per cent) trail, as TCS shrank in retail and Infosys shrank in both.

Mohit Joshi, CEO and MD of Tech Mahindra, noted during the earnings conference call that the fastest-growing vertical on a year-on-year basis was retail.

“While Comms had a good quarter as we ramped up on the large Orange deal, the real standout over the past year has been our manufacturing business, which has consistently grown fast, and our retail, travel and transportation business, which has grown at 10 per cent plus over the past four-plus quarters. In BFSI, we grew about 5.4 per cent CC in Q2, but in the two quarters prior, we grew at over 8 per cent. We fully expect to get back or exceed growth in the next quarter,” he said.

Growth potential

Joshi added that gaining market share and increasing BFSI’s contribution to its revenue mix was challenging given its scale. It has brought in additional leadership and remains confident about the medium-to-long-term opportunities in the segment, citing the significant growth potential. While BFSI is currently among its slower-growing verticals, the company said its performance was in line with, or marginally ahead of, that of larger peers.

Meanwhile, Aarthi Subramanian, Executive Director, President, and COO of TCS, said, “When we look at the $3.1 billion annualised revenues, AI revenue is growing across every vertical. Three verticals are leading in terms of growth rate — BFSI, manufacturing, and life sciences and healthcare. In these verticals, we are seeing the whole agentic control plane and AI governance. Consumer, Technology, and Energy, Resources, and Utilities are following closely in terms of active adoption of these trends.”

Meanwhile, Wipro CEO and MD Srini Pallia said the healthcare sector, particularly in the US, was being affected by policy changes. Large US payers, facing slowing membership growth and continued margin pressure, were focusing on cost reduction and operational efficiencies. This had led them to tighten discretionary spending while prioritising AI, automation, compliance-related initiatives, and productivity-led transformation, he said.

“Financial services remained one of the most resilient sectors, supported by ongoing investments in modernisation, digital platforms, and regulatory initiatives,” said Biswajit Maity, Senior Principal Analyst at Gartner.

Published on October 30, 2026

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