Chandrasekaran says TCS has seen the worst; AI to reshape workforce
BENGALURU: Tata Consultancy Services Ltd (TCS) has seen the worst of its recent slowdown and expects artificial intelligence to drive its next phase of growth
BENGALURU: Tata Consultancy Services Ltd (TCS) has seen the worst of its recent slowdown and expects artificial intelligence to drive its next phase of growth, chairman N Chandrasekaran said Tuesday, outlining a future in which the country's largest technology-services company could eventually deploy as many AI agents as employees. The comments, made at TCS's 31st annual general meeting (AGM), came as shareholders pressed management on the company's share-price performance and the impact of AI on jobs, growth and the broader technology-services industry. Growth path Addressing concerns over the company's recent performance, Chandrasekaran argued that technology disruptions have historically weighed on growth, investor confidence and valuations before giving way to a new phase of expansion. Also Read | Noel Tata backs shorter term for Chandra, seeks succession plan “Those shareholders who have remained with the company for the last 25, 30 years, or at least 20 years since we went public, you will know that we have faced technology disruptions, and every time there is a technology disruption, there is a transition time. Because the clients pause the adoption of technology. And you will see a slowness in growth, market loses confidence, and the share price goes down,” Chandrasekaran said in response to shareholder questions on the stock's decline. At least a seventh of the 42 shareholders present at the AGM quizzed management on the fall in share prices, while four-fifths raised questions about AI and its impact on the company.
TCS shares fell 0.1% on Tuesday to ₹2,149.55, a si year low. The stock has declined 33% since the start of the year, making it the worst performer among the country's five largest information-technology services companies. Shares of Infosys Ltd, HCL Technologies Ltd, Wipro Ltd and Tech Mahindra Ltd have fallen between 7% and 31% over the same period. “Share prices can go down for two reasons. Either because the company's revenue on profits fall, or the market's belief on the future growth is doubtful. So the P/E (price to earnings) multiples fall,” Chandrasekaran said, adding that “we have seen the worst of the last couple of years and I believe AI growth will be significant.” The Mumbai-based company reported $30.02 billion in revenue last year, down 0.5% from a year earlier. Much of the decline came from its India business, which accounts for 8% of revenue. It was the company's first annual revenue decline since listing in 2004. Chandrasekaran said TCS remains focused on returning to double-digit revenue growth, though he declined to commit to a timeline. The company expects AI revenue to help drive annual growth. TCS ended the January-March 2026 quarter with over $2.3 billion in annualized revenue. AI shift A key part of that growth strategy is TCS's effort to embed AI across its business.
The BriefWire