TCS states that retail and travel clients are more vulnerable to the turmoil caused by US tariffs.

Clients of India’s Tata Consultancy Services, which is expanding in the retail, travel, and automobile sectors, face greater exposure to the impact of U.S. tariffs, and if uncertainty continues, they might turn to cost-cutting measures, the CEO of the company informed a news agency.

The banking and financial services industry, accounting for almost one-third of revenue for India’s largest software exporter, has not been impacted, TCS CEO K Krithivasan stated in an interview.

The worldwide trade conflict and U.S. President Donald Trump’s inconsistent stance on tariffs have complicated predictions of market conditions, causing businesses to be cautious about approving significant expenditures.

“The consumer business, hospitality business, travel, auto industry are the businesses that we have to watch out for. If the uncertainty continues for longer, those businesses may have to focus more on cost optimisation, but at this time, I have not heard anything,” Krithivasan said.

Retail and manufacturing are the company’s second- and fourth- largest revenue contributors, while banking remains the largest. TCS generates about 50% of its income from North America, an essential market for Indian IT service firms that face tariff repercussions via their American clients.

The company fell short of fourth-quarter earnings forecasts on Thursday and cautioned about clients postponing decisions on discretionary projects. TCS, nonetheless, anticipates that the uncertainty will be “brief.”

Krithivasan stated that he anticipates fiscal year 2026 will surpass 2025, since there are still legacy software and systems that clients might need to replace in the medium to long term. TCS mentioned that a trend of clients merging their IT vendors has assisted the company in increasing its market share.

“Particularly when customers look at cost optimization as a key focus area, they will try to reduce the number of service providers. TCS has been a beneficiary of these consolidations that have happened in FY25,” Krithivasan said.