India's biggest IT companies' margins pressured by wages and AI

Business Jul 24, 2026

India's biggest IT companies saw operating margins come under pressure this quarter thanks to wage hikes, AI investments, and big project costs.

The good news? Boosts in productivity from AI tools, smarter operations, and currency gains helped cushion the blow.

Leaders at these firms are upbeat about margins bouncing back soon.

TCS 24% margin, Wipro 16% margin

TCS's operating margin dropped to 24%, mainly due to salary hikes, though some losses were offset by efficiency gains and currency moves.

Wipro's margin slipped to 16%, hit by pay raises and upfront spending on AI projects.