After a dip in FY25, the share of revenue from Banking Financial Services and Insurance (BFSI) has seen an increase for the Indian IT services players.

Four of the five top tier Indian IT services players saw an increase in share of revenue from the BFSI vertical in FY26, according to data from the company’s annual reports. 

Speaking to businessline, experts suggest that the increase in revenue contribution from BFSI is a combination of both absolute growth driven by modernisation and AI projects while also being aided by contractions in other verticals like technology, telecom, manufacturing and retail. 

In FY26, BFSI accounted for 32 per cent of TCS’s overall revenue, after having dropped to 30.9 per cent in the previous fiscal. Similarly, HCLTech saw the sector’s contribution to its topline rise to 21.5 per cent from 20.7 per cent in FY25. 

In the case of Infosys, the share of revenue from BFSI saw a relatively modest growth from 27.7 per cent to 28 per cent while for Tech Mahindra it went up from 16.1 per cent to 16.3 per cent. Meanwhile, Wipro bucked the trend having seen a drop from 34.3 to 34.1 per cent. 

In absolute terms, these companies saw a 1 - 7.5 per cent y-o-y growth in the BFSI revenue in FY26 relative to FY25 with the exception of Wipro which saw a degrowth of 0.7 per cent.

Vivek Iyer, Partner and Financial Services Risk Leader, Grant Thornton Bharat suggests that unlike other verticals banks and financial institutions are using AI and technology investments, for core productivity gains rather than discretionary innovation spending, making the segment relatively resilient even during periods of macro stress. 

“In addition, the currency depreciation is also improving the cost competitiveness of Indian IT vendors, potentially supporting outsourcing demand from global BFSI clients through FY27,” he said.

Pushpa Marwal, Analyst at Forrester believes that the trend can be attributed to underperformance in other verticals. “While BFSI share is going up, a part of it is being driven by other industries contracting or being flat. In such a scenario BFSI doesn’t have to do much to look stronger,” she said.

It would be unfair to dismiss the growth entirely as BFSI has seen genuine recovery in absolute terms, she adds. “Some of the gains are earned, and some are simply a function of other verticals underperforming.

Marwal also said that current deals are more necessity-led backlog clearing from previous years which has a ceiling when compared to larger transformation deals.

BFSI sector has also emerged resilient due to strong AI adoption by banks and financial services .

A report from Kotak Institutional Equities suggests in sectors like banking many AI projects are moving from the pilot stage and entering production environments. The report however cautions that in the long-run AI could also eventually create revenue deflation as banks report productivity gains in areas like application development and customer service leading to lower billable effort for IT service players.

In an earnings call post the company’s Q4FY26 results, K Krithivasan, Chief Executive Officer and Managing Director at TCS said that though increased macroeconomic uncertainty has resulted in cautious investment decision-making, BFSI clients continued to prioritize core and legacy modernization alongside AI/GenAI investments.

On the outlook for the BFSI vertical heading into FY27, Gaurav Vasu, co-founder of UnearthInsight, suggests that since most of the spending in BFSI is non-discretionary priorities, the vertical appears more resilient than most other verticals

On the other hand, Nitin Bhatt, Technology Sector Leader, EY India, suggests that though BFSI will continue to anchor demand for Indian IT services into FY27, the continued expansion of BFSI global capability centres will lead to more product and platform ownership moving in‑house. Bhatt expects GCCs to act as co‑creation hubs rather than substitutes, with IT services firms supporting mature GCCs with niche next‑gen and critical legacy skills.

Kriti Gupta, Practice Director, Everest Group, said that BFSI is likely to remain one of the primary growth engines for large IT services firms heading into FY27. “The sector continues to benefit from structural demand drivers including core modernization, regulatory compliance, cybersecurity investments, cloud adoption, data transformation, AI enablement, and vendor consolidation,” she added.

(With Inputs from BL Intern G. Mahalakshmi)

Published on June 8, 2026