BENGALURU: For IT services companies, verticals such as retail, manufacturing and logistics are expected to be the worst affected by tariffs imposed by US President Donald Trump.
About 13.3% of Infosys’s revenue comes from its retail segment, which saw a -2.6% year-on-year decline in constant currency (CC) terms for the quarter ended March 2025.
For Wipro, BFSI declined 0.5% sequentially and healthcare fell 3.1%. Consumer declined 1.3% sequentially, Technology & Communication dropped 0.9% quarter-on-quarter, while Energy, Manufacturing and Resources rose 1.1% sequentially and declined 7% year-on-year.
The country’s largest IT services firm, Tata Consultancy Services (TCS), saw heightened caution and delays in discretionary projects, especially in the US.
"This was driven by the significant drop in consumer sentiment in February, which preceded changes in global trade and tariffs creating a domino effect on retail CPG (Consumer Packaged Goods) and TTH (Travel, Transportation and Hospitality) industries," said TCS CEO and MD K Krithivasan recently at the company’s earnings conference.
He also said retail, CPG, airlines and travel hospitality are seeing more impact. "Similarly, there is an impact in the auto sub-segment within manufacturing. But if you take BFSI, by and large the segment is doing okay. There is some softness in insurance," Krithivasan added.
For TCS, BFSI business grew 2.5% in Q4, the consumer business declined 0.2% and the manufacturing business fell 2.9%.
Infosys CEO and MD Salil Parekh, in a post-earnings conference, recently pointed out that the company is operating in an uncertain environment. He added that given the current situation, there will be some impact on consumer products.
Meanwhile, a recent report by Jefferies noted that given the reliance on global supply chains, tariff uncertainties are likely to impact the retail, manufacturing and logistics verticals.
Wipro CEO Srini Pallia said a large transformation project was paused by a client in Q4. "The global industry environment remained uncertain for most of the year, and the recent tariff announcements have only added to that. Even though the underlying demand for tech reinvention remains strong, clients are approaching it more cautiously. They are focused on cost, speed, and AI-led efficiency," he said recently.