Top 12 Mid-Tier IT Services Companies to Cross $12 Bln in Revenue by Q2 FY26: Report In contrast to top-tier firms grappling with stagnant growth, NEOVAY reveals that mid-market players are refining business models for higher efficiency, even as profitability pressures persist

The top 12 listed mid-tier IT services companies are likely to generate USD 12 billion in annual revenue by Q2 FY26 (quarter ending September 2025), according to a report titled, 'Mid-tier IT Services in India: Winning Against the Odds', by NEOVAY Global, a consulting firm specializing in business transformation for technology and services companies. This is an increase of about USD 1 billion over the last four quarters.

The report analyzed 12 publicly listed Indian IT services firms, each with more than USD 250 million and less than USD 2 billion in trailing twelve months (TTM) revenue. Collectively, these companies delivered USD 3 billion in Q1 FY26 revenue, growing 1.3 per cent quarter-on-quarter and 11.9 per cent year-on-year, with only five achieving the coveted USD 1 billion annual run rate.

Coforge, Persistent Systems, Mphasis, and Sonata Software are some of the leading mid-sized Indian IT services companies. Coforge reported revenue of USD 1.47 billion in FY25 growing 31.2 per cent YoY while Persistent Systems' revenue grew 18.8 per cent YoY to touch USD 1.40 billion. Mphasis' FY25 revenue grew 4.6 per cent in constant currency to INR 142.2 billion while Sonata Software's consolidated revenue grew 15.5 per cent YoY to USD 1.20 billion.

Mid-market IT services companies are demonstrating remarkable resilience and adaptability, outpacing tier-I players in several critical areas, according to the study. Despite sporadic quarter-on-quarter revenue growth and widespread volatility driven by U.S. tariff uncertainties and global geopolitical shifts, resilient mid-market leaders have managed to pull ahead, distancing themselves from less agile competitors. These companies are capitalizing on opportunities amid industry headwinds by embracing advanced AI solutions and industry-specific platforms.

In contrast to top-tier firms grappling with stagnant growth, NEOVAY reveals that mid-market players are refining business models for higher efficiency, even as profitability pressures persist. The market is turning sharply winner-take-most. In the past four quarters, at least two companies have consistently crossed USD 500 million in quarterly total contract value, or more than USD 2 billion in total contract value on a trailing 12-month (TTM) basis.

Even as nine of the twelve firms saw EBIT margins decline over the past two years, a select few continue to operate well above the 15 per cent EBIT margin benchmark, and investor confidence remains high with at least three companies trading at price-earnings multiples above 50×. Seven firms now generate more than USD 50,000 in TTM revenue per employee, with at least three exceeding USD 60,000, as they tighten utilization—one reaching 88.7 per cent—and embed AI in delivery to decouple revenue growth from headcount growth, creating a structural advantage.

"With the September quarter underway, Q2 FY26 is shaping up to be pivotal," said Praveen Bhadada, CEO & Managing Director, NEOVAY Global. "We expect stronger disclosures on AI revenue beyond proofs of concept as companies begin to quantify platform-led and IP-driven services and demonstrate whether outcome-based contracts are translating into measurable margin lift. Key indicators such as revenue per person, profit per person, and utilization will be closely watched to gauge how effectively AI and automation are decoupling growth from headcount."

"At the same time, macro complexity is intensifying. Possible U.S. tariff reintroductions, offshoring taxes, and tighter H1B rules add delivery-model risk and are already prompting firms to accelerate nearshore capacity and GCC build-outs in India's tier-II cities, Eastern Europe, and Mexico", he added.

The study concludes that the ability of mid-market IT services companies to balance organic growth, large-deal ramp-ups, and global delivery expansion—while navigating current market disruptions—will shape the next phase of their market re-rating.