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IT’s Rs 18 lakh crore m-cap rout; Info Edge, Ixigo post Q4 profits
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A multi-month bear market has hit the valuations of India’s top 10 digital and technology services exporters. This and more in today’s ETtech Top 5.
Also in the letter:
■ OpenAI widens revenue lead
■ US patent heat for Wipro
■ Trump puts AI order on ice
India’s IT sector has shed Rs 17.6 lakh crore in market value in the past few months after a relentless sell-off drove stocks to their weakest levels since the 2008 global financial crisis.
What’s happening? Fears that generative AI will disrupt the IT outsourcing model, along with weak client spending and sluggish earnings, have hammered the Nifty IT index from 46,089 in December 2024 to 27,078 on May 14, 2026.
By the numbers:
After a 20% slide in February and another 5% drop in March, the Nifty IT index managed a 1% gain in April before slipping 1% so far in May.
Source: Google Finance
Why is this happening? Investors worry that generative AI could undercut the labour-intensive, lower-cost services that underpin India’s IT outsourcing model.
At the same time, IT stocks are moving with the currency. A weaker rupee makes dollar earnings more valuable, while beaten-down valuations have triggered bouts of short-covering. A more durable rebound, though, likely hinges on clearer evidence of AI-led revenue growth and a pickup in global tech spending.
Sanjeev Bikhchandani, founder and executive vice chairman of Info Edge
Info Edge, which owns Naukri, reported a strong March-quarter performance with both profit and revenue rising sharply.
Financials:
Segment highlights:
Ixigo group CEO Aloke Bajpai (left) and co-CEO Rajnish Kumar
Le Travenues Technology, parent of online travel aggregator Ixigo, reported a strong jump in its March-quarter profit despite only single-digit revenue growth.
Number-wise:
But why: Ixigo credited its multi-modal diversification strategy. Buses picked up demand when trains faced headwinds, while flights gained share despite a tough aviation backdrop.
Sam Altman, CEO, OpenAI (Left) and Dario Amodei, CEO, Anthropic
OpenAI generated $5.7 billion in revenue in the first quarter, roughly $1 billion more than rival Anthropic, according to The Information.
What’s driving OpenAI:
OpenAI has also been pushing premium offerings. Last month, it rolled out a $100-per-month ChatGPT Pro plan with expanded Codex access as competition with Anthropic heats up.
Yes, but: Anthropic is also forecasting rapid growth. The Information reported that the company expects second-quarter revenue of $11 billion, nearly double the previous quarter, with projected profit of about $600 million.
The report added that Anthropic’s annualised revenue has climbed to nearly $45 billion, outpacing OpenAI’s $25 billion.
What else? New data from Ramp’s AI Index suggests more firms are tilting toward Anthropic. In April, 34.4% of surveyed businesses paid for Anthropic products, versus 32.3% for OpenAI.
Also Read: OpenAI goes all out to charm Indian coders
US patent holder ContentNexus has filed a lawsuit against Wipro in the Eastern District of Texas, alleging infringement of two patents related to signal-processing technology.
What’s the matter:
Tell me more: ContentNexus alleges that Wipro’s television receiver solution, which uses the ATSC 3.0 broadcasting standard to deliver software applications, video content, and targeted ads to connected TVs, mirrors its patented system.
Hexaware Technologies will acquire the Consulting Professionals Services Holdings Limited, a UK- and UAE-based consulting firm, in a deal worth up to £11 million (about Rs 140 crore).
Deal details:
US President Donald Trump delayed signing a new artificial intelligence executive order after warning it could blunt America’s lead in the global tech race.
What’s happening? Trump scrapped a planned White House event with tech executives after reviewing the draft order. "We're leading China, we're leading everybody, and I don't want to do anything that's going to get in the way of that lead," Trump told reporters.
The proposed order would have established a government framework to vet national security risks associated with advanced AI models before they are released publicly. According to The Wall Street Journal, officials and tech advisers worry this could morph into heavy-handed regulation and slow innovation.
Tell me more: Trump has cast AI as a key engine of economic growth, even as public anxiety over its risks remains high. He has pledged to roll back AI safety rules introduced by former President Joe Biden and publicly backed major AI companies at events in the US and overseas.
Also in the letter:
■ OpenAI widens revenue lead
■ US patent heat for Wipro
■ Trump puts AI order on ice
Rs 18 lakh crore wiped out: Has the brutal Indian IT stock crash finally bottomed?
India’s IT sector has shed Rs 17.6 lakh crore in market value in the past few months after a relentless sell-off drove stocks to their weakest levels since the 2008 global financial crisis.
What’s happening? Fears that generative AI will disrupt the IT outsourcing model, along with weak client spending and sluggish earnings, have hammered the Nifty IT index from 46,089 in December 2024 to 27,078 on May 14, 2026.
By the numbers:
- TCS: market value down by over Rs 8 lakh crore; shares slumped 50%
- Infosys: shares fell 45%
- HCLTech, LTIMindtree: down more than 40%
- Wipro, Mphasis, Coforge: down over 30%
- Other Nifty IT stocks: declined at least 25%
After a 20% slide in February and another 5% drop in March, the Nifty IT index managed a 1% gain in April before slipping 1% so far in May.
Why is this happening? Investors worry that generative AI could undercut the labour-intensive, lower-cost services that underpin India’s IT outsourcing model.
At the same time, IT stocks are moving with the currency. A weaker rupee makes dollar earnings more valuable, while beaten-down valuations have triggered bouts of short-covering. A more durable rebound, though, likely hinges on clearer evidence of AI-led revenue growth and a pickup in global tech spending.
Info Edge Q4 results: Naukri.com parent posts 23% rise in profit after tax, revenue up 16%
Info Edge, which owns Naukri, reported a strong March-quarter performance with both profit and revenue rising sharply.
Financials:
- Consolidated net profit: Up 23% year-on-year (YoY) to Rs 566 crore.
- Revenue from operations: Up 16% to Rs 869 crore, from Rs 750 crore a year ago.
- Dividend: Rs 3.6 per share
Segment highlights:
- Recruitment (Naukri): Billings of Rs 811 crore; operating profit of Rs 340 crore.
- Real estate (99acres): Billings of Rs 163 crore, up just 1.9% YoY, but the company swung to an operating profit of Rs 3 crore from a loss of Rs 15 crore last year.
- Matrimony (Jeevansathi.com and Aisle): Fourth-quarter billings up 22% to Rs 49 crore.
Ixigo posts 8.5% rise in Q4 revenue, clocks profit of Rs 32 crore
Le Travenues Technology, parent of online travel aggregator Ixigo, reported a strong jump in its March-quarter profit despite only single-digit revenue growth.
Number-wise:
- Profit after tax: Rs 32 crore, up 91% YoY
- Operating revenue: Up 8.5% YoY to Rs 308 crore.
- Gross transaction value for FY26: Up 25% to Rs 18,692 crore
But why: Ixigo credited its multi-modal diversification strategy. Buses picked up demand when trains faced headwinds, while flights gained share despite a tough aviation backdrop.
OpenAI reports nearly $6 billion Q1 revenue, $1 billion more than Anthropic: Report
OpenAI generated $5.7 billion in revenue in the first quarter, roughly $1 billion more than rival Anthropic, according to The Information.
What’s driving OpenAI:
- Rising demand for its coding assistant, Codex.
- Wider adoption of enterprise AI tools
- Early advertising experiments on ChatGPT.
OpenAI has also been pushing premium offerings. Last month, it rolled out a $100-per-month ChatGPT Pro plan with expanded Codex access as competition with Anthropic heats up.
Yes, but: Anthropic is also forecasting rapid growth. The Information reported that the company expects second-quarter revenue of $11 billion, nearly double the previous quarter, with projected profit of about $600 million.
The report added that Anthropic’s annualised revenue has climbed to nearly $45 billion, outpacing OpenAI’s $25 billion.
What else? New data from Ramp’s AI Index suggests more firms are tilting toward Anthropic. In April, 34.4% of surveyed businesses paid for Anthropic products, versus 32.3% for OpenAI.
Also Read: OpenAI goes all out to charm Indian coders
US firm ContentNexus files patent suit against Wipro
US patent holder ContentNexus has filed a lawsuit against Wipro in the Eastern District of Texas, alleging infringement of two patents related to signal-processing technology.
What’s the matter:
- ContentNexus claims Wipro made, used, sold and imported products and services based on its patented technology without permission.
- The company is seeking damages, legal costs, attorneys' fees, and interest and has requested a jury trial. It says it owns the patents outright and is entitled to compensation.
Tell me more: ContentNexus alleges that Wipro’s television receiver solution, which uses the ATSC 3.0 broadcasting standard to deliver software applications, video content, and targeted ads to connected TVs, mirrors its patented system.
Hexaware to buy UK consulting company CPS in Rs 140 crore deal
Hexaware Technologies will acquire the Consulting Professionals Services Holdings Limited, a UK- and UAE-based consulting firm, in a deal worth up to £11 million (about Rs 140 crore).
Deal details:
- The acquisition will be executed through Hexaware Technologies UK, its wholly owned subsidiary.
- Upfront payment of £6 million, with an additional £5 million tied to financial performance targets.
- The transaction is expected to close within two weeks.
Trump calls off AI executive order over concern it could weaken US tech edge
US President Donald Trump delayed signing a new artificial intelligence executive order after warning it could blunt America’s lead in the global tech race.
What’s happening? Trump scrapped a planned White House event with tech executives after reviewing the draft order. "We're leading China, we're leading everybody, and I don't want to do anything that's going to get in the way of that lead," Trump told reporters.
The proposed order would have established a government framework to vet national security risks associated with advanced AI models before they are released publicly. According to The Wall Street Journal, officials and tech advisers worry this could morph into heavy-handed regulation and slow innovation.
Tell me more: Trump has cast AI as a key engine of economic growth, even as public anxiety over its risks remains high. He has pledged to roll back AI safety rules introduced by former President Joe Biden and publicly backed major AI companies at events in the US and overseas.
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