Welcome to the 96th edition of The Chatter — a newsletter where we dig through what India’s biggest companies are saying and bring you the most interesting bits of insight, whether about the business, its sector, or the wider economy. We read every major Indian earnings call and listen to the interviews so you don’t have to.
We’re always eager to improve—please share your ideas on how else we can innovate “The Chatter” format to better serve your needs.
In this edition, we have covered 5 companies across 4 industries.
Software Services
Tata Consultancy Services
Automobile
Maruti Suzuki India Limited
Financial Services
PB Fintech Limited (Policy Bazaar)
JM Financial Institutional Securities Limited
IT Services
Fusion CX Limited
Software Services
Tata Consultancy Services | Large Cap | Software Services
Tata Consultancy Services is a global leader in IT services, consulting, and business solutions with a presence in over 50 countries. It serves as the flagship IT arm of the Tata Group and is one of the largest employers in the private sector in India.
TCS achieved consistent growth across its primary business segments, led by strong performance in the BFSI and manufacturing sectors. This broad-based recovery indicates that the company is successfully navigating the current global economic environment through diversified service offerings.
“We are pleased with our performance this quarter. Delivering 1.2% sequential international revenue growth marks our fifth consecutive quarter of positive growth. Growth was broad-based: Key Verticals: Banking, Financial Services & Insurance (BFSI), Manufacturing, and Technology Services all posted strong sequential growth. Geographies & Service Lines: All major international geographies and almost all service lines grew well. AI Integration: Artificial Intelligence solutions now account for roughly 10% of our portfolio, contributing to strong Total Contract Value (TCV) deal wins. Client Account Expansion: Client accounts are expanding steadily across multiple tiers.”
— TCS Management, Senior Leadership Team
Management confirmed that AI automation is reducing contract values for about half of their active projects as efficiency gains are passed to clients. However, investors should see that complex transformation projects are resistant to this pricing pressure as they focus on broader business value.
“That estimate is accurate. Given that standard multi-year IT contracts carry a 3-to-4-year tenure and AI-driven automation discussions have been active for nearly two years, roughly 50% of active engagements have undergone that phase. Project-level deflation generally averages between 10% and 20%. However, this is not a universal rule. In large-scale transformation engagements where we demonstrate net business value, contract values remain stable without deflation because scope expands.”
— TCS Management, Senior Leadership Team
The company views current AI-driven shifts as a natural cycle where new high-value services replace older, more efficient ones. The robust deal pipeline of $9.6 billion suggests that new project wins are more than making up for the shrinkage in traditional service lines.
“This represents a standard technology evolution curve. A similar dynamic occurred a decade ago during the transition to cloud and digital services—legacy Application Development and Maintenance (ADM) revenues contracted while digital revenues grew rapidly. Traditional service lines experience natural efficiency shrinkage while new technology capabilities accelerate. Furthermore, AI engagements are moving beyond initial productivity cost-cutting. Clients are initiating net-new transformation projects focused on business outcomes, which will increasingly offset AI-driven efficiency deflation. Overall, demand indicators remain positive, supported by robust total deal wins ($9.6 billion TCV).”
— TCS Management, Senior Leadership Team
Profit margins remained stable as the company chose to reinvest gains into acquisitions and talent development. These strategic expenditures are designed to prepare the company for future project delivery and complex technology requirements.
“Sequential margins held flat at 24.0% because we prioritized strategic growth investments during the quarter. Four primary investment outlays absorbed margin expansion: 1. M&A and Strategic Partnerships: Transaction and integration costs associated with M&A initiatives (such as the MHP acquisition) alongside 360-degree ecosystem partnerships. 2. Niche Talent Acquisition: Targeted lateral hiring for specialized technology skill sets. 3. Bench Capacity & Freshers: Onboarding approximately 4,500 people to build delivery capacity for upcoming projects. 4. Subcontractor Costs: Short-term deployment of specialized subcontractor talent to meet immediate project delivery timelines. These investments were balanced by currency benefits and core operational leverage.”
— TCS Management, Senior Leadership Team
Management is maintaining its long-term profitability targets despite upcoming seasonal challenges and integration costs. Investors should expect a focus on better employee utilisation and cost management to protect margins in the coming months.
“Our long-term margin aspiration remains at our 26.0% to 28.0% target band. In the near term, we continue to prioritize growth investments. Over the next two quarters, we face minor headwinds from seasonal furloughs in Q3 and MHP integration costs as the transaction closes. We will balance these by tapering Q2 upfront investments while maintaining operational discipline across employee utilization, productivity, and subcontractor optimization.”
— TCS Management, Senior Leadership Team
In times of tighter spending, clients often merge their IT contracts with larger, more stable providers to save money. This trend benefits TCS because it has the scale to take over larger portions of a client’s technology budget.
“When discretionary budgets tighten, enterprise clients prioritize cost optimization and vendor consolidation. Tech modernization itself is increasingly viewed as a primary cost-optimization vehicle. TCS consistently wins market share during vendor consolidation cycles.”
— TCS Management, Senior Leadership Team
The company is moving away from selling basic tech labour toward delivering specific business results for its clients. This shift into consulting-led AI work allows TCS to capture more strategic and higher-value contracts.
“Moreover, AI has shifted enterprise engagement. Rather than simply selling technology services, we work directly with business units to drive measurable business outcomes. Enterprise AI adoption requires structured, responsible, and scalable execution playbooks, which is driving momentum across our AI pipeline.”
— TCS Management, Senior Leadership Team
Management clarified that recent changes at the parent group level have no effect on the day-to-day running of the business. For investors, this signals stability and a clear focus on corporate governance and client service.
“There is zero operational or strategic impact on TCS. TCS operates under an independent, highly experienced Board of Directors that provides continuous oversight and guidance. Operations and client delivery remain fully focused on execution.”
— TCS Management, Senior Leadership Team
Automobile
Maruti Suzuki India Limited | Large Cap | Automobile
Maruti Suzuki is India’s largest passenger vehicle manufacturer, commanding a dominant share of the domestic automotive market. The company produces a diverse range of vehicles and is a key global export hub for the Suzuki Group.
Maruti Suzuki is shifting its focus toward deep localisation to protect itself from global supply chain disruptions like semiconductor shortages. This strategy is intended to improve long-term cost efficiency and ensure the company remains competitive as India becomes a global export hub.
“To understand deep localisation, we must look at Maruti Suzuki’s journey. When we entered India 43 years ago under the vision of our former Chairman, Mr. Osamu Suzuki, an organised domestic automobile manufacturing ecosystem barely existed. Recognising India’s vast long-term potential, Maruti Suzuki laid the foundation for the local auto component industry. Starting with a handful of domestic suppliers, we now work with over 400 Tier-1 suppliers and more than 1,500 Tier-2 and Tier-3 suppliers across India. This supplier ecosystem not only powers Maruti Suzuki but has built the entire Indian automotive industry, supplying components to OEMs across the market. Today, India has become the world’s third-largest auto market and a major global export hub. Achieving world-class quality, cost efficiency, and productivity requires deep localisation. It builds operational resilience against ongoing global supply chain shocks—such as semiconductor shortages, rare-earth material constraints, and geopolitical crises in West Asia. Relying heavily on imported components limits agility and long-term competitiveness, making deep localisation our next major strategic imperative.”
— Hisashi Takeuchi, Managing Director & CEO
The company is moving away from a strategy focused solely on the lowest possible unit cost to one that prioritises supply chain stability. For investors, this suggests a move toward domestic self-reliance to avoid the volatility of international logistics and geopolitical risks.
“Historically, automotive manufacturing prioritised unit cost above all else. Today, supply chain sustainability and resilience are equally critical. Building a complete, self-reliant domestic ecosystem within India is the only way to establish a truly sustainable and competitive automotive industry.”
— Hisashi Takeuchi, Managing Director & CEO
Management points out that electric vehicles in India still rely heavily on coal-based power, which limits their environmental benefits for now. This explains why the company is not putting all its resources into EVs alone and is instead pursuing a variety of fuel technologies.
“Electric Vehicles (EVs) are an important pillar of our future roadmap. We manufacture EVs in India and export them to over 100 global markets. However, because roughly 75% of India’s current electricity generation comes from coal-fired thermal power plants, EVs are not yet a fully carbon-neutral solution on a well-to-wheel basis in the immediate term.”
— Hisashi Takeuchi, Managing Director & CEO
Maruti is betting on compressed bio-gas (CBG) as a way to make their popular CNG car lineup carbon-neutral. This allows the company to leverage its existing leadership in CNG vehicles while meeting future green energy requirements.
“India’s strength lies in its agricultural economy, which yields massive volumes of organic agricultural waste. By converting bio-waste—such as cow dung or agricultural crop stubble into biogas (CBG/compressed bio-gas), we produce a carbon-neutral fuel identical to CNG. CNG vehicles currently account for nearly 40% of Maruti Suzuki’s total sales. Utilising bio-gas transforms CNG into a well-to-wheel carbon-neutral mobility solution.”
— Hisashi Takeuchi, Managing Director & CEO
The company highlights that its focus on biogas helps solve major environmental issues like methane emissions and crop burning. Investors should see this as a way for Maruti to align its business with India’s broader environmental and regulatory goals.
“Furthermore: 1. Methane Mitigation: Processing cow dung prevents methane evaporation into the atmosphere, which is 28 times more harmful than CO2. 2. Air Quality Management: Converting paddy stubble into compressed biogas helps address seasonal agricultural field burning and regional air quality challenges in North India.”
— Hisashi Takeuchi, Managing Director & CEO
Management believes India should follow its own path to green energy rather than just following Western models. This indicates that Maruti will likely continue investing in a mix of fuels rather than focusing exclusively on battery-powered electric cars.
“Developing economies with unique agricultural assets like India do not need to blindly copy developed market templates; we can pave a distinct, resource-efficient path to carbon neutrality.”
— Hisashi Takeuchi, Managing Director & CEO
The high cost of EVs in India is currently driven by a heavy reliance on imported battery cells from China. Maruti’s goal is to bring these costs down by building a local battery supply chain, which is necessary for mass-market adoption and better profit margins.
“To achieve global cost competitiveness in any vehicle segment, a localised component ecosystem is required. In Internal Combustion Engine (ICE) vehicles, Maruti Suzuki has achieved nearly 95% localisation. In the EV segment, no domestic OEM has achieved similar localisation levels yet because key components—such as advanced battery cells—remain heavily dependent on imports from countries like China. Establishing a complete domestic supply chain for battery electric vehicles in India is essential to making EVs truly cost-effective.”
— Hisashi Takeuchi, Managing Director & CEO
The Indian operations have reached a massive scale, now producing over 10,000 cars every day for the global market. This confirms India’s status as the most critical manufacturing hub for the entire Suzuki Group worldwide.
“India is the central engine of the global Suzuki Group. In FY24, we produced and sold 2.4 million vehicles, and our annual production capacity in India now stands at 2.9 million units across 280 operational days per year. That translates to manufacturing over 10,000 vehicles every single day.”
— Hisashi Takeuchi, Managing Director & CEO
India now accounts for 60% of all Suzuki vehicles made globally and has R&D capabilities that match the Japanese parent company. This ensures that Maruti is no longer just a manufacturing site but a core centre for high-value engineering and design.
“Today, approximately 60% of Suzuki Group’s total global vehicle production originates from India. Furthermore, our Indian R&D facilities—including proving grounds, vehicle design centres, and testing infrastructure—are equal in scale, capability, and sophistication to Suzuki Motor Corporation’s facilities in Japan.”
— Hisashi Takeuchi, Managing Director & CEO
Management expects massive long-term growth because car ownership in India is still very low compared to China and the West. This low penetration rate provides a long runway for sales growth as the Indian economy continues to expand over the next two decades.
“Currently, car penetration in India stands at approximately 34 vehicles per 1,000 people, compared to ~230 per 1,000 in China and over 600 per 1,000 in developed economies like Japan, Europe, and the US. As India progresses toward a developed economy (Viksit Bharat) by 2047, domestic vehicle penetration will expand dramatically. India represents one of the largest growth opportunities in the global automotive industry, and global businesses looking to establish a presence in India must act now.”
— Hisashi Takeuchi, Managing Director & CEO
Financial Services
PB Fintech Limited | Mid Cap | Financial Services
PB Fintech operates India’s leading online insurance platform Policybazar and credit marketplace Paisabazar. The company specialises in digital-first distribution of protection-oriented insurance products and consumer credit through an open-architecture comparison engine.
Management believes their focus on term insurance and helping customers settle claims will protect the business from new regulations. They argue that providing real value to consumers ensures long-term survival even as commission rules change.
“First, we welcome the consultation paper and will abide by all its provisions in letter and spirit. Regulatory intervention was long overdue to address industry-wide issues like mis-selling in savings products and claims settlement friction in health insurance. Regarding PB Fintech: yes, the business model will survive and prosper over the medium and long term. Our platform is built on delivering genuine customer value. To illustrate: Savings vs. Protection: In life insurance, Policybazar has historically focused on term insurance rather than high-commission savings products. Claims Advocacy: In health insurance, our team actively intervened in FY24 to re-examine and successfully settle 11,156 previously rejected customer claims. As long as we deliver distinct consumer value, Policybazar will maintain a strong market position and remain financially sustainable.”
— Yashish Dahiya, Chairman and Group CEO
The CEO is walking back previous aggressive comments made in the media following the release of the regulator’s paper. This move aims to restore a professional relationship with regulators while acknowledging the company’s massive scale of employees and partners.
“I want to apologise for any emotional or harsh statements made during initial media reactions over the past 10 days. As a founder responsible for 35,000 employees and over 1.4 million POSP distribution partners, I must conduct myself with measured perspective rather than reacting emotionally.”
— Yashish Dahiya, Chairman and Group CEO
The company claims that the proposed regulatory changes actually support their long-standing strategy of avoiding low-value savings products. This alignment suggests they may face less disruption than competitors who rely on selling high-commission products.
“The consultation paper aligns directly with core principles Policybazar has advocated since launching in 2009: 1. Curated Product Suitability: Addressing high-payout, low-value savings products while championing term and health insurance.”
— Yashish Dahiya, Chairman and Group CEO
Policybazar currently handles nearly one-third of all new health and term insurance policies in the country. Their scale allows them to force price transparency and better claim outcomes for customers, which they see as a primary competitive advantage.
“Claims Support: Independent, open-architecture platforms possess the leverage required to challenge unfair claim rejections on behalf of consumers—something tied agencies cannot easily do. Price Transparency: Price comparison platforms drive down consumer costs. Historically, major legacy insurers resisted listing on comparison platforms precisely because price transparency squeezes excess margins. Market Penetration: Policybazar currently accounts for over 30% of all fresh health and term insurance lives added in India.”
— Yashish Dahiya, Chairman and Group CEO
The company is asking the regulator to ensure that independent platforms are not penalised more than agents who work for a single insurer. They also want the timing of commission cuts to match when insurance companies lower their overall costs to protect jobs.
“Our core request to the regulator centres on two operational points: Preserving Choice: Open architecture and independent consumer choice should not be structurally disincentivised compared to tied agency channels. Implementation Alignment: Reductions in distributor commissions must be time-aligned with reductions in insurers’ overall Expense of Management (EOM) so cost savings directly benefit policyholders while allowing distribution networks to adjust operations and preserve employment.”
— Yashish Dahiya, Chairman and Group CEO
Management warns that revenue could fall to 60-70% of current levels if commission rates drop without a spike in volume. They plan to survive by freezing hiring and taking market share from smaller brokers who don’t have the same low customer acquisition costs.
“Policybazar is structurally equipped to handle revenue adjustments. Over 80% of our sales traffic originates from direct, organic brand search, meaning our customer acquisition cost remains low. Furthermore, within our contact centres, 26% of our core advisory team accounts for 70% of successful conversions. If revenue metrics adjust downward, our strong brand equity and operational leverage allow us to maintain solvency and gain relative market share. In an immediate baseline scenario without volume shifts, top-line revenues might adjust to 60%–70% of current levels. However, because our net profit represents roughly 10% of total revenue, operating cost rationalization and organic volume consolidation from smaller, unviable brokers will absorb margin compression. We have already paused incremental hiring to manage headcount through natural churn.”
— Yashish Dahiya, Chairman and Group CEO
The firm is emphasising that no single insurance company controls more than 20% of their business volume. This independence allows them to act as a consumer advocate in disputes, a role that individual agents cannot fill because they rely on one insurer for their income.
“We do not debate specific commission percentages—whatever payout levels the regulator sets will be complied with. The critical policy priority is preserving open-architecture choice. If independent comparison platforms are disincentivised, distribution defaults back to tied agency channels owned by large legacy insurers. A tied agent dependent on a single insurer for their livelihood cannot independently advocate against a carrier’s decision during a claim dispute. Because no single insurer accounts for more than 20% of Policybazar’s volume, we maintain the operational independence to challenge incorrect claim rejections for our clients.”
— Yashish Dahiya, Chairman and Group CEO
Management is considering radical changes like charging fees directly to customers or becoming an insurance manufacturer themselves. While these are backup plans, they highlight the company’s willingness to completely change its business model to survive new laws.
“As executives, it is our fiduciary duty to evaluate all potential strategic models—including zero-commission platform structures, risk-advisory fee models, or manufacturing options—to ensure long-term corporate resilience. In 2013, Policybazar temporarily operated under a zero-commission structure, so operating purely as a technology and service platform is a model we understand. However, any future operational evolution will be undertaken only after formal consultation and guidance from IRDAI. We will align our business model 100% with regulatory guidelines in both letter and spirit.”
— Yashish Dahiya, Chairman and Group CEO
JM Financial Limited | Small Cap | Financial Services
JM Financial is an integrated and diversified financial services group offering investment banking, mortgage lending, and asset management. The company provides a wide range of services to corporate, institutional, high net worth, and retail clients in India.
Credit demand is rotating out of unsecured personal loans and moving into gold-backed financing. This shift is driving massive growth numbers for lenders, though much of it is currently fueled by higher gold prices rather than actual weight increases.
“Sectoral trends show gold loan growth exceeding 80% to 90% year-on-year for banks and topping 100% for select NBFCs, primary expanded by rising gold prices rather than pure tonnage growth. At a systemic level, credit demand is shifting from personal loans to gold loans. Two years ago, personal loan growth exceeded 25%; today it has slowed to roughly 11% to 12%. A portion of that slowdown has transferred directly into gold financing, accelerating gold loan growth above 70% to 80%.”
— Ajit Kumar, Lead BFSI Research Analyst
Extremely low credit costs are encouraging almost all financial institutions to expand their gold loan offerings. Investors should be wary as rising competition and stabilising gold prices might pressure margins in the near term.
“Because gold is a fully secured asset class, credit costs are minimal—capped at roughly 10 to 15 basis points—prompting banks and NBFCs alike to scale gold loan operations across branch networks. However, given increasing competition and moderating gold price momentum, we maintain a cautious near-term view on gold lending while tracking the ongoing substitution away from personal loans.”
— Ajit Kumar, Lead BFSI Research Analyst
Despite similar credit growth rates, NBFCs are delivering much higher profit growth compared to traditional banks. This suggests that the non-bank sector is currently more efficient at converting loan growth into bottom-line earnings.
“At an aggregate level, NBFC earnings growth remains significantly stronger than the banking sector. For the current quarter, we project PAT growth around 12% year-on-year for the banking sector, whereas our NBFC coverage universe is tracking at roughly 35% year-on-year PAT growth. This earnings divergence occurs despite both sectors expanding total credit growth at roughly 20% year-on-year.”
— Ajit Kumar, Lead BFSI Research Analyst
NBFCs are outperforming banks because they focus on high-interest retail products like consumer durables and microfinance. Banks, meanwhile, are stuck with lower-yielding corporate loans, leading to a significant gap in profit expansion.
“In FY26, banks registered only 6% PAT growth, whereas covered NBFCs delivered over 25% earnings expansion. This divergence stems from asset mix: over 80% of NBFC lending targets high-yielding retail segments such as personal loans, consumer durables, MFIs, and gold loans, whereas incremental bank credit growth remains concentrated in lower-yielding corporate loans or institutional lending to NBFCs.”
— Ajit Kumar, Lead BFSI Research Analyst
Major players like Bajaj Finance are maintaining high growth rates backed by strong operational momentum. The main risks to this outlook are external, including shifts in interest rates or changes to how insurance commissions are regulated.
“Leading diversified NBFCs like Bajaj Finance continue to track over 25% to 30% earnings growth. Unless impacted by rising bond yields, policy rate adjustments, or new regulations surrounding insurance distribution commissions, underlying NBFC earnings momentum remains very strong.”
— Ajit Kumar, Lead BFSI Research Analyst
Companies with a high percentage of floating-rate loans are better protected against rising interest rates. This makes Aditya Birla Capital and Piramal Enterprises preferred picks as they can pass on higher costs to borrowers.
“Factoring in Q2 earnings, bond yield trajectories, and insurance commission guidelines, our top recommendations in diversified NBFCs are Aditya Birla Capital and Piramal Enterprises, as over 70% of their total loan book is floating-rate in nature, positioning them positively for a rising interest rate environment.”
— Ajit Kumar, Lead BFSI Research Analyst
Specific sector leaders in vehicle, housing, and MSME lending are identified as the strongest candidates for portfolio inclusion. These selections highlight the preferred vehicles for gaining exposure to specialised credit markets.
“In vehicle finance, we prefer Cholamandalam Investment & Finance, followed by Shriram Finance. In housing finance, we favour PNB Housing Finance and Aadhar Housing Finance. In MSME and microfinance, we cover Fedbank Financial Services and Five-Star Business Finance in MSME lending, alongside CreditAccess Grameen in microfinance.”
— Ajit Kumar, Lead BFSI Research Analyst
Large private banks are viewed as the primary beneficiaries of the current high interest rate environment. For investors looking at smaller players, specific regional and small finance banks offer the best strategic value.
“Within banking, we favour large private banks—HDFC Bank, ICICI Bank, and Axis Bank—as their balance sheets benefit directly from higher interest rate cycles. Among mid-sized and regional banks, we prefer City Union Bank, AU Small Finance Bank, and DCB Bank.”
— Ajit Kumar, Lead BFSI Research Analyst
IT Services
Fusion CX Limited | Small Cap | IT Services
Fusion CX is a global technology-led customer experience provider that operates an AI-first platform for omnichannel business process management. The company maintains a significant delivery presence in Tier-2 and Tier-3 locations across India, the Philippines, and the United States.
The company differentiates itself from traditional call centres by utilising a suite of six internally developed AI tools. This transition to a technology-first platform suggests higher barriers to entry and potential for better margin protection than labour-only services.
“Both Kishore and I have built this business over the past 22 years. Fusion CX operates as an AI-first digital customer experience platform. We provide omnichannel customer management, transaction processing, and data processing across voice, chat, and email channels. Our service delivery is embedded with six proprietary AI tools and platforms developed, maintained, and owned entirely in-house: 1. AIQMS: AI-driven Quality Management System. 3. Mind Workplace: Workforce management and productivity suite. 5. Aria Bot: Automated conversational bot framework. 7. TrainX: AI learning and onboarding platform. 9. Chatbot: Intelligent customer interaction agent. 11. Accent Utilizer: Speech and accent normalisation engine. Rather than acting as a traditional call centre, we operate as a technology-integrated digital platform delivering high-value CX solutions.”
— Pankaj Dhanuka, Chairman, Managing Director & CEO
The company’s revenue is heavily concentrated in the North American market, making it sensitive to US economic trends and currency fluctuations. Investors should note this high dollar-denominated exposure as a primary driver of the company’s financial performance.
“Our geographic revenue distribution is structured as follows: North America: ~80% of total revenue. Europe: 7% to 8%. Southeast Asia, Australia & New Zealand: ~7%. India: Remainder of revenues.”
— Pankaj Dhanuka, Chairman, Managing Director & CEO
Management is focusing on defensive, high-volume sectors like utilities and telecommunications to ensure steady demand. This vertical concentration provides a level of revenue stability, as these industries typically require continuous customer support regardless of the economic climate.
“In terms of industry verticals, our largest segment is Utilities & Telecom. We also maintain a strong presence across Banking, Financial Services & Insurance (BFSI) and Healthcare.”
— Pankaj Dhanuka, Chairman, Managing Director & CEO
Focusing on B2B workflows increases the technical complexity of the work performed, which typically leads to higher contract stickiness. This strategic shift away from simple consumer queries helps the firm capture higher-value business and build deeper integration with enterprise clients.
“Crucially, a significant proportion of our client delivery serves B2B enterprise workflows—managing interactions between our clients and their enterprise, medium, or small business customers. Managing complex B2B enterprise workflows requires significantly higher technical skill and process rigour than handling basic B2C consumer queries.”
— Pankaj Dhanuka, Chairman, Managing Director & CEO
Management confirms that their labour turnover is in line with the standard industry rate of 30%. This transparency indicates that attrition is a managed operational cost rather than an outlier risk specific to the company’s internal culture.
“An annual attrition rate near 30% aligns directly with broader IT-enabled services (ITeS) industry benchmarks.”
— Pankaj Dhanuka, Chairman, Managing Director & CEO
The company is intentionally building its delivery hubs in non-metropolitan areas across three continents to secure more stable and cost-effective talent. This rural delivery model serves to reduce wage pressure and increase employee retention by offering jobs in markets with fewer competing tech employers.
“Our core operational strategy focuses on creating sustainable, high-impact employment in Tier-2, Tier-3, and Tier-4 locations where high-quality job opportunities are limited: India: Delivery centres are located across Tier-3 and Tier-4 towns, primarily in Eastern India. Philippines: Operating across two delivery locations classified as Tier-3 and Tier-4 regions. United States: Operations span four locations situated primarily in semi-urban and rural regions. Generating formal technology employment in underserved non-metro markets provides strong social impact alongside operational talent stability.”
— Pankaj Dhanuka, Chairman, Managing Director & CEO
The company is expanding its operational backbone into smaller regional hubs in West Bengal to take advantage of government decentralisation trends. This approach allows the company to tap into high-quality local talent pools while keeping overhead costs significantly lower than in major metro cities.
“To build on Pankaj’s point, this strategy aligns directly with national policy objectives to decentralise employment beyond major metropolitan hubs. In West Bengal, for instance, we generate significant employment across hub regions such as Siliguri, Durgapur, Kalyani, and Howrah, building operational backbones in underserved regions.”
— Kishore Saraogi, Managing Director & COO
The emphasis on high-rigour B2B workflows acts as a qualitative moat for the company’s service offerings. Investors should recognise this as a move toward higher-margin, specialised services that are less likely to be fully automated or commoditised.
“Managing complex B2B enterprise workflows requires significantly higher technical skill and process rigour than handling basic B2C consumer queries.”
— Pankaj Dhanuka, Chairman, Managing Director & CEO
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Quotes in this newsletter were curated by Shahid Barmare.
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