Q2FY25 (Jul-Sep 2024) Revenue and Growth Rates of Indian Engineering Service Providers

Top Performers Among Indian Engineering Service Providers

The Q2FY25 (Jul-Sep 2024) quarter delivered a mixed performance for Indian Engineering Service Providers (ESPs). While some companies demonstrated robust growth fueled by sectoral demands, others faced challenges, reflecting the varied dynamics of the engineering services industry.

Detailed Analysis of Revenue and Growth Rates

1. Persistent Systems : With $346M in revenue, Persistent led the pack, registering 5.3% QoQ growth and an impressive 18.4% YoY growth, maintaining its momentum in digital engineering.
2. KPIT Technologies : Achieving $173M in revenue, KPIT closely followed Persistent with 5.0% QoQ growth and 18.3% YoY growth, driven by its specialization in automotive engineering.
3. Tata Elxsi : At $114M, Tata Elxsi reported a 2.9% QoQ growth and 6.9% YoY growth, signaling steady performance across design and embedded systems.
4. LTTS (L&T Technology Services): LTTS delivered $307M in revenue, with QoQ growth of 3.9% and YoY growth of 6.5%, showing strength in industrial and plant engineering.
5. HCLTech ERS : As the largest contributor, HCLTech ERS achieved $544M in revenue but showed moderate growth rates of 1.8% QoQ and 4.8% YoY, reflecting the impact of macroeconomic headwinds.
6. Tata Technologies : With $155M in revenue, Tata Technologies reported 1.6% QoQ growth and a modest 0.8% YoY growth, maintaining stability in manufacturing and design solutions.
7. Cyient DET : At $173M, Cyient DET faced challenges with a QoQ growth of 2.0% but a YoY decline of 3.0%, indicating hurdles in digital and engineering transformation initiatives.

Weighted Average Growth: Key Industry Insights

The weighted average growth for Q2FY25 stood at 3.2% QoQ and 7.6% YoY, highlighting consistent demand for engineering services despite global uncertainties.

The Q2FY25 performance of Indian ESPs underscores a mix of resilience and challenges. Companies like Persistent and KPIT continued their upward trajectory with double-digit YoY growth, while others like Cyient faced sectoral headwinds. The overall weighted average indicates a stable outlook, with innovation and digital transformation remaining critical drivers for the industry.