The decline of the Indian rupee through the first three quarters of FY26 has boosted the reported revenue figures of India’s largest five information technology companies by 4-6%, even as the discretionary spending has remained muted.
The falling rupee has also provided an average of 40-60 basis points of support to operating margins. The Indian rupee has fallen about Rs 4.2 against the US dollar so far in FY26. As most Indian IT companies earn a large portion of their income overseas, particularly in the United States and Europe, this depreciation has inflated rupee-denominated revenue and profit figures in quarterly results.
“For every 1% fall in the rupee, the revenue typically rises by 0.5% and about 10-20 bps rise in the margin. This quarter, the currency depreciation offset furlough impacts too,” said an analyst at a domestic broking firm.
The top five IT companies in India are Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro and Tech Mahindra.
A weak start masked by currency in Q1 FY26
The impact of the falling rupee was most evident at the start of the financial year. In the June quarter, demand conditions remained subdued across global markets, and several firms reported flat or declining revenue when measured in constant currency.
Despite this, reported rupee revenue appeared stronger, as the weaker exchange rate cushioned the impact of slowing volumes. Across the sector, currency movements added roughly 3–4 percentage points to year-on-year reported revenue growth in the first quarter, while also softening quarter-on-quarter declines.
Wipro’s management said during its Q1 FY26 earnings call: “In constant currency terms, we recorded a decline… From an INR perspective, revenue stood higher on a year-on-year basis,” the company said.
Meanwhile, in Q2 reported rupee revenue growth exceeded constant-currency growth by 3–4.5 percentage points year-on-year, while the quarter-on-quarter boost from currency alone was around 2–3 percentage points.
