• Financial performance and outlook: Direct revenue grew 2.1% sequentially and 9.9% year-on-year in Q1 FY27 with $461 million in TCV deal wins. Management expects Q2 to deliver the highest sequential revenue growth in three years, driven by rapid conversion of AI and platform-led pipelines.
• Operating margin trajectory: Margins declined by 60 basis points in Q1, with 35 basis points attributed to acquisition earn-outs and the remainder to reduced utilization ahead of anticipated Q2 expansion. Management expects margins to normalize across the year and stay within the guided range of 14.75% to 15.75%.
• Sectoral revenue trends: TMT delivered double-digit sequential and mid-teens year-on-year growth, while retail expanded through a large deal ramp-up and insurance is positioned for sustained momentum following 35% growth in FY26. Conversely, logistics and transportation continue to face macro headwinds and geopolitical supply chain disruptions.
• AI and platform strategy: AI-led engagements comprise over 63% of the $1.8 billion net new TCV secured over the last four quarters, appearing in 70% of the total pipeline. The rollout of the Triya platform is driving larger bundled managed services contracts and accelerating a structural shift toward outcome-based pricing models.