Healthcare and BFSI Drive Q2 Performance for Indian IT Firms Amid Mixed Segment Demand

Performance across verticals for India's leading IT services companies remained mixed during the second quarter of fiscal year 2027, with growth rates differing significantly by segment. According to data from UnearthInsight, healthcare and life sciences recorded the strongest weighted growth among key verticals, closely followed by the BFSI sector, while demand in technology and retail stayed uneven.

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 stood as an outlier in this segment, reporting a sharp 17.3 per cent decline, reflecting continued weakness in technology spending.

The BFSI sector proved to be a stable growth driver, with all five major companies registering positive growth. HCLTech led the segment at 7.1 per cent growth, followed by Tech Mahindra at 4.6 per cent and TCS at 3.9 per cent. Infosys and Wipro recorded more modest growth of 2.1 per cent and 1.3 per cent, respectively.

Retail and consumer segments saw mixed results. HCLTech, Wipro, and Tech Mahindra reported year-on-year growth of 14 per cent, 6 per cent, and 9.2 per cent, respectively. Conversely, TCS and Infosys reported declines of 1 per cent and 7.7 per cent in the same segment.

In manufacturing and energy, four of the five companies posted positive growth. 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, registering a 6.6 per cent decline.

The healthcare and life sciences vertical experienced the widest divergence. Infosys posted a strong 32.5 per cent growth rate, while Tech Mahindra grew by 6.2 per cent. TCS reported marginal growth of 0.5 per cent, whereas HCLTech and Wipro saw declines of 2.1 per cent and 6.5 per cent, respectively. Weighted by revenue, healthcare grew by 5.4 per cent and communications by 3.5 per cent, though healthcare's growth heavily relied on Infosys Life Sciences.

Company executives shared varied perspectives during earnings calls. Mohit Joshi, CEO and MD of Tech Mahindra, noted that retail has been a strong standout vertical over the past year, growing at over 10 per cent. Aarthi Subramanian, Executive Director, President, and COO of TCS, highlighted that AI revenue is expanding across every vertical, with BFSI, manufacturing, and healthcare leading in growth rates.

Wipro CEO and MD Srini Pallia pointed out that the US healthcare sector has been influenced by policy changes, leading large US payers to tighten discretionary spending while prioritising AI and automation. Meanwhile, Biswajit Maity, Senior Principal Analyst at Gartner, noted that financial services remained highly resilient due to ongoing investments in modernization and regulatory initiatives.

"The Q2 FY27 performance data highlights a bifurcated demand environment for Indian IT services. While sectors like BFSI and healthcare continue to show resilience and selective high growth driven by modernization and AI adoption, legacy segments like retail and technology spending remain unpredictable. For businesses operating in this ecosystem, agility and targeted tech investments are critical to navigating these sector-specific divergences." — Dr. Shishir Gupta, Founder & CEO, StartupLanes