IJCOPE Journal

UGC Logo DOI / ISO Logo

International Journal of Creative and Open Research in Engineering and Management

A Peer-Reviewed, Open-Access International Journal Supporting Multidisciplinary Research, Digital Publishing Standards, DOI Registration, and Academic Indexing.
Journal Information
ISSN: 3108-1754 (Online)
Crossref DOI: Available
ISO Certification: 9001:2015
Publication Fee: 599/- INR
Compliance: UGC Journal Norms
License: CC BY 4.0
Peer Review: Double Blind
Volume 02, Issue 10

Published on: October 2026

FROM REVENUE GROWTH TO REPORTED EARNINGS: DECOMPOSING PROFIT GROWTH AND PROFITABILITY IN SIX LARGE INDIAN IT SERVICES COMPANIES, FY2023–FY2025

Avishkar Sonawane

School of Business, Indira University, Tathwade, Pune 411033, India.

Article Status

Plagiarism Passed Peer Reviewed Open Access

Available Documents

Abstract

Purpose. Comparative studies of Indian IT services firms mostly report levels of revenue, profit and ratios. Fewer ask how revenue growth is converted into reported profit growth. This study examines how revenue growth and margin change jointly account for year-to-year changes in profit after tax (PAT), and how much of the dispersion in PAT margins is firm-specific. Design. Descriptive and exploratory analysis of consolidated revenue from operations and PAT attributable to owners for six large listed firms (TCS, Infosys, HCLTech, Wipro, Tech Mahindra, LTIMindtree) for FY2023–FY2025: 18 firm-years and 12 growth observations. An exact log decomposition separates a revenue component from a margin component. Findings. Revenue growth was modest (mean 3.9% in FY2024 and 4.5% in FY2025), whereas PAT growth ranged from −51.2% to +80.3%. The margin component exceeded the revenue component in four of twelve firm-years, all at Wipro and Tech Mahindra. No monotonic association between revenue growth and PAT growth was detectable (Spearman ρ = 0.09, n = 12; permutation p = 0.77; bootstrap 95% interval −0.29 to 0.52), although power is low. About 92% of the variance in PAT margin lay between firms. A sensitivity check shows that unverified secondary figures would have changed the FY2024 PAT-growth ranking materially. Limitations. Purposive sample, three fiscal years, secondary data, no cost-line or exceptional-item adjustment. Contribution. A verified, provenance-documented dataset and a transparent decomposition that separates scale effects from margin effects, with explicit limits on inference.

Keywords: Indian IT services; profit growth decomposition; PAT margin; comparative financial analysis; financial data verification. JEL: G30, L86, M41.

How to Cite this Paper

Sonawane, A. (2026). From Revenue Growth to Reported Earnings: Decomposing Profit Growth and Profitability in Six Large Indian IT Services Companies, FY2023–FY2025. International Journal of Creative and Open Research in Engineering and Management, <i>02</i>(10), 1-9. https://doi.org/10.55041/ijcope.v2i10.177

Sonawane, Avishkar. "From Revenue Growth to Reported Earnings: Decomposing Profit Growth and Profitability in Six Large Indian IT Services Companies, FY2023–FY2025." International Journal of Creative and Open Research in Engineering and Management, vol. 02, no. 10, 2026, pp. 1-9. doi:https://doi.org/10.55041/ijcope.v2i10.177.

Sonawane, Avishkar. "From Revenue Growth to Reported Earnings: Decomposing Profit Growth and Profitability in Six Large Indian IT Services Companies, FY2023–FY2025." International Journal of Creative and Open Research in Engineering and Management 02, no. 10 (2026): 1-9. https://doi.org/https://doi.org/10.55041/ijcope.v2i10.177.

Search & Index

References

Anderson, M. C., Banker, R. D., & Janakiraman, S. N. (2003). Are selling, general, and administrative costs “sticky”? Journal of Accounting Research, 41(1), 47–63.

https://doi.org/10.1111/1475-679X.00095

Bansal, R., Kar, S. K., & Mishra, S. K. (2022). The causes of profitability: A panel study of Indian IT and consulting sector. International Journal of Accounting, Auditing and Performance Evaluation, 18(2). https://www.inderscience.com/filter.php?aid=126878 [page range and DOI not confirmed]

Chandrika, S., & Salauddin, S. (2026). Financial modelling and forecasting of selected information technology companies listed in India. IRE Journals, 10(2), 1406–1410. https://doi.org/10.64388/IREV10I2-1722314

Honjo, Y. (2018). Do profitable start-up firms grow faster? Evidence from Colombia. Cuadernos de Economía, 37(75), 727–754. https://doi.org/10.15446/cuad.econ.v37n75.69123

Lefebvre, V. (2024). Looking at the relationship between growth and profitability: The role of cost stickiness as a strategic liability. Journal of Accounting & Organizational Change, 21(1), 70–93. https://doi.org/10.1108/JAOC-06-2023-0107

Malarvizhireka, K. (2026). Financial performance analysis of major Indian IT companies. International Journal of Arts, Science and Humanities. https://shanlaxjournals.in/journals/index.php/sijash/article/view/10160 [volume, issue and pages not confirmed]

Weiss, M., Herrmann, D., Khoury, T. A., Kreutzer, M., & Hummel, M. (2023). The boundary conditions for growth: Exploring the non-linear relationship between organic and acquisitive growth and profitability. Long Range Planning, Article 102291. https://doi.org/10.1016/j.lrp.2022.102291 [volume and issue not confirmed]

Data sources (company results announcements, exchange filings and their reproductions): see Appendix B.

Cited by secondary citation only: Bansal (2015), The IUP Journal of Accounting Research & Audit Practices, 14(4); the title, period and journal were confirmed on the IUP page, but the author and volume come from the reference list of Chandrika and Salauddin (2026). Not included in the verified reference list.

Ethical Compliance & Review Process

  • •All submissions are screened under plagiarism detection.
  • •Review follows editorial policy.
  • •Authors retain copyright.
  • •Peer Review Type: Double-Blind Peer Review
  • •Published on: Oct 27 2026
CCBYNC

This article is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. You are free to share and adapt this work for non-commercial purposes with proper attribution.

View License
Scroll to Top