Revenue Share of Indian IT Companies from the USA: A Deep Dive

The US market is a game-changer for Indian pharmaceutical companies. It offers both huge opportunities and unique challenges, due to the high demand for generics, specialty drugs, and biosimilars. But how do these companies break down their revenue in the US versus other markets?

Let’s take a look at the numbers and the strategies behind them.
Revenue Breakdown Across Regions:
Here’s a snapshot of the revenue breakdown from key regions for top Indian pharma companies:

Company Name

USA

Europe

Rest of the world

India

Dr Reddy

45.90%

16.40%

19.40%

18.30%

Sun Pharma

33.30%

19.40%

15.10%

32.20%

Cipla

13.00%

41.00%

39.00%

7.00%

Lupin

38.00%

11.00%

17.00%

34.00%

Aurobindo Pharma

45.30%

27.00%

16.70%

11.00%

Gland Pharma

52.70%

19.10%

24.10%

4.10%

Biocon

43.70%

23.80%

21.60%

10.90%

Glenmark Pharma

46.50%

3.30%

0.10%

50.10%

Key Insights:

  • High US Exposure: Companies like Dr. Reddy's, Gland Pharma, and Glenmark derive 45% or more of their revenue from the US.
  • Diverse Regional Revenue Mix: Cipla and Aurobindo Pharma generate a smaller share from the US but compensate with strong revenues from Europe and the Rest of the World.
  • Strategic Geographic Spread: While the US remains a key market, companies have diversified their portfolio to reduce dependence on a single region, such as India or Europe.

Why Are Indian IT Companies So Dependent on the US?

  1. Largest Source of IT Spending: The US continues to dominate global IT spending, especially in areas like digital transformation, cloud computing, AI, and cybersecurity. This makes the US a major revenue driver for Indian IT firms.
  2. Long-Term Contracts: US companies often enter multi-year, high-value contracts with Indian firms, ensuring consistent and predictable revenue.
  3. Rapid Technological Adoption: The US leads the charge in adopting emerging technologies, creating continuous demand for innovative IT solutions, something Indian companies excel at providing.

In short, the US market offers stability, scalability, and high profit margins, making it indispensable for Indian IT service providers.

Company by Company: Quick Look

HCL Tech: US Revenue Share: 63.90%

Key Innovations in US:

  • HCLTech is investing heavily in AI and GenAI, launching tools like AI Force and AI Foundry, and partnering with Google, AWS, and Microsoft to build smart solutions for healthcare, MedTech, and other industries.
  • HCLTech is transforming US healthcare and engineering, helping hospitals like Children’s Minnesota improve operations with AI, and securing big AI-based engineering deals, including work with ChargePoint on EV charging software.
  • HCLTech is expanding its US presence, leading digital and cloud transformations with AI Force and CloudSMART, and launching Public Sector Solutions to work with US government, education, and defense sectors.

Wipro: US Revenue Share: 63.40%

Key Innovations in US:

  • Wipro uses AI and GenAI to boost efficiency, applying it for predictive maintenance, automation, and creating new revenue streams across the US and global markets.
  • In the US BFSI sector, Wipro partners with Capco to modernize applications, infrastructure, and cybersecurity, focusing on asset management, insurance, and wealth platforms.
  • Wipro leads digital transformation in the Americas, offering consulting-led, AI-powered solutions that reduce costs, improve speed, and enhance operations across industries. 

Infosys: US Revenue Share: 57.10%

Key Innovations in US:

  • Infosys uses its Topaz AI platform to drive transformation in customer service, cybersecurity, and productivity, deploying 200+ AI agents for US clients.
  • Infosys is expanding in the US energy sector by acquiring MRE Consulting and launching Infosys Energy Consulting Services LLC to strengthen expertise in energy trading and risk management.
  • Infosys modernizes IT systems for US companies like Citizens, using AI and cloud platforms to reduce costs, speed up operations, and enable large-scale digital change.
  • Infosys focuses on US healthcare and financial services, combining AI, cloud, and automation to improve efficiency, while being recognized as a top healthcare digital service provider.

TCS: US Revenue Share: 50.00%

Key Innovations in US:

  • TCS’s OmniStore™ and ADDTM platforms modernize healthcare tech in the US, driving AI-powered retail innovation, pharma R&D, diagnosis, and cost savings for major clients.
  • TCS leads cloud migration projects in the US, replacing outdated systems with public cloud solutions, improving security, and enabling faster digital transformation using AI tools.
  • TCS delivers custom AI solutions like OmniStore™, Agentic AI, and ignio™, optimizing utility management, pharma supply chains, and IT operations with GenAI-driven automation.

Tech Mahindra: US Revenue Share: 48.40%

Key Innovations in US:

  • Tech Mahindra leverages AI and GenAI to create industry-specific solutions, partnering with NVIDIA and Google Cloud to deliver AI-driven value in various US sectors, including healthcare and telecom.
  • In US healthcare, Tech Mahindra focuses on AI solutions for Pharmacovigilance and CMS Interoperability, helping with modernization, compliance, and improving digital healthcare services.
  • Tech Mahindra supports US telecom and manufacturing industries by running device testing labs, enhancing wireless services, and using AI to drive smart factory innovations and digital IT infrastructure modernization.

Why Should Investors Care?

  1. Risk of Overdependence: A slow-down in the US economy could have a significant impact on the revenues of Indian IT companies, given their high reliance on this market.
  2. Currency Fluctuations: The performance of the Indian Rupee against the US Dollar can influence profits. A rising Dollar benefits Indian IT firms, while a falling Dollar could hurt them.
  3. Diversification is Key: Some companies are already expanding into other regions, like Europe and Japan, to balance their exposure to the US market.

Conclusion: A Balanced Approach Is Key

While the US market will remain the dominant revenue source for Indian IT companies for the foreseeable future, this heavy reliance also exposes them to risks. For sustained growth and risk mitigation, these companies must diversify their geographic presence and explore other high-growth markets.

For investors and analysts, it’s crucial to track US technology spending trends, deal wins, and pricing dynamics. In a rapidly evolving global landscape, firms with a diversified client base and robust risk management strategies will likely outperform in the long term.

Read more on: www.adroitfinancial.com