Tech sector likely to touch $300 bn revenue in FY26: Nasscom

Bengaluru: India’s tech industry is likely to reach a milestone of $300 billion revenue in the financial year starting April 1, 2025 (FY26), industry body Nasscom said in a report Monday. Growing at 5.1%, the tech industry has added $13.8 billion incremental revenue, taking the total revenue estimate to over $282.6 billion (including hardware) in FY25. 

This comes as IT service providers have largely posted subdued earnings in the ongoing financial year and as reported previously, any uptick is most likely going to be seen later in the calendar year 2026. Experts suggest that a single digit growth is expected going ahead. 

Amid shifting global economic patterns and evolving market dynamics, sectors such as engineering research and development (R&D) and even global capability centres (GCCs) are driving growth for the sector, highlighted in the report titled Annual Strategic Review 2025.

The sector’s revenue now indicates an equal split between global multinational companies (including GCCs) and domestic clients.“The chief executive officer (CEO) outlook for FY2026 remains measured yet positive, with increased tech and artificial intelligence (AI) spending. However, upskilling in niche and core tech areas will continue to remain of paramount importance for the industry,” said Rajesh Nambiar, President, Nasscom.

Growing AI demands from clients and expansion of AI initiatives is the biggest theme, even though the overall AI adoption remains measured. Over 55% of AI activity by Indian tech services firms are focused on building long-term co-creation partnerships to develop scalable, future-ready AI solutions.

Despite the irreversible shifts led by AI and global headwinds, the industry continues to be the net hirer and is expected to add 1,26,000 net new employees taking the total workforce to an estimated 5.8 million in FY25.

However, the top 4 IT firms posted a collective net decline of 6,527 employees in their workforce in the third quarter of the current fiscal. Meanwhile, HCLTech’s total headcount is going to fall short of the 10,000 target for FY25, according to the estimates given by the company during its latest earnings call. 

Commenting on the report, Sanjeev Jain, Chief Operating Officer, Wipro said, “Our recent growth has been fuelled by the resurgence of discretionary spending in key markets such as the USA, along with rising demand for AI-driven solutions aimed at enhancing productivity.”