India's AI business is growing, but companies still need to prove its profitability

Today's News & Updates Saturday, 31 October 2026 India edition · AI, technology, business, education & careers

Today's developments point towards an important shift: AI is creating new business opportunities, but companies are becoming more selective about where they invest, whom they hire and what skills they expect.

There are also important developments in banking cybersecurity, higher education, AI infrastructure and India's technology workforce.

Here are today's most relevant stories.

4. India's AI business is growing, but companies still need to prove its profitability

Financial Express · 26 October 2026

techgig.com

There is a difference between generating AI-related revenue and growing an entire business through AI.

Recent financial results show that AI-related business is expanding at major Indian IT companies, but overall revenue growth remains relatively modest.

For the September quarter:

• HCLTech's constant-currency revenue grew 2.3% sequentially.
• Infosys grew 1.2%.
• TCS grew 0.5%.
• Wipro was broadly flat.

At the same time, AI now contributes more than 10% of revenue at TCS and Infosys, while HCLTech's Advanced AI business reportedly grew 28% sequentially.

So why is AI revenue not translating into stronger overall growth?

One explanation is that some AI projects are transforming existing contracts rather than creating entirely new spending.

For example, a client may previously have paid an IT services company for a large team to perform a particular process. If AI automates part of that process, the client may pay less for the same work.

The service provider may become more productive, but its revenue does not necessarily increase.

The real commercial opportunity is creating new services and products that businesses are willing to pay for.

This is why companies need to move beyond demonstrations and develop AI systems that generate measurable business outcomes.

For professionals, this creates opportunities in AI application development, enterprise integration, automation, data engineering and AI evaluation.

Source: Financial Express — AI revenue surges, but IT growth remains muted The Financial Express

Editorial source note

Figures and claims remain attributed to the supplied reporting, not independently verified by Aiexl.