Last year, Sonata Software Ltd, which joined the club of a $1 billion local IT company, provided estimates of FY28 AI revenues well above the level that has been revealed recently.
Samir Dhir, managing director and chief executive of Sonata Software, told analysts on August 5th, “We expect AI-enabled services to contribute 20% of Sonata's revenue over the next three years.
Sonata Software ended fiscal 2025, up 15.5% with revenue of $1.2 billion. This translates to $160 million in incremental revenue.
If the company adds a similar amount each year for the next three years, revenues would reach $1.688 billion by fiscal year 2026, of which approximately $330 million will come from AI.
Certainly, the Bengaluru-based company is aiming to earn $1.5 billion by fiscal year 2026. An email sent to the company on Tuesday for comment on its revenue targets was unresponsive.
Released about five years ago, Happest Minds Ltd began revealing Genai's revenue in October 2023. According to the first quarter report card, it won $1.48 million or 2.3% of revenue from Genai Business Vertical from April to June 2025. This showed a continuous 12% increase from new technology.
Bengaluru-based Happest Minds revenues rose 24.2% to $243.6 million.
This has led both Sonata and Happy Mind to take leaves from books by Accenture, the world's largest IT outsourcing person.
Accenture, which began disclosure of revenues from Genai in the third quarter of FY23, earned around 1% of its quarterly revenue from Genai at the time. Currently, the share from genai has increased to around 4% of quarterly revenue.
Accenture, IBM
Accenture has secured a new $1.5 billion Genai reservation for the March-May period 2025. The revenue from the new technology was $700 million. The Dublin-based company's revenue totaled $17.7 billion over the quarter, up 6% from the previous quarter.
Since September 2023, the company has tallied the total total of Genai orders to $7.1 billion. Peer IBM wasn't that late.
“Our Genai Book of Business is currently at over $7.5 billion inception,” said Arvind Krishna, chairman and CEO of IBM, Arvind Krishna, the company's revenue statement dated July 23. IBM's business from April to March saw 16.75% jump sequentially to $17 billion. Book of Business refers to reservations and actual sales.
According to the UN Trade Development (UNCTAD) report in April 2025, the global AI market has increased 25 times by 2033 from $189 billion in 2023.
India's largest IT services companies, including Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd, Wipro Ltd and Tech Mahindra Ltd, are averse to providing AI revenue or forecasts. Mumbai-based TCS reported a $900 million Genai trading pipeline last April, but has since stopped.
At least one analyst said revealing Genai figures is a determinant of the technology adoption by both IT companies and their clients.
“IT companies will provide the number of employees first raised, then develop the number of proof of concepts and then provide the revenue generated,” said Ramkumar Ramamoorthy, partner at Tech Growth Advisory Firm.
Small contract
The non-report-notice practice from Genai is in contrast to 2015, when large IT outsourists, including TCS, Infosys and Wipro, regularly earned revenue from digital businesses, and then included IT industry buzzwords, including work related to social, mobile, analytics, cloud and the Internet of Things.
Currently, the top five IT outsourders state how many AIRE LED engagements they are working on, or how many AI agents they are developing.
Another analyst said that small IT services companies will make Genai profitable as the average contract size is small and businesses become the majority of those contracts through new technology.
“A key factor driving this difference in behavior is that (AI) revenues occur in small contracts and therefore lost in the huge traditional revenues of large players. For small businesses, these small AI contracts are far more important as they coincide with smaller average contract size and smaller base revenues.
He added that large tech services companies will only announce AI revenue if there is any substance.
“Investors are becoming more sensitive to AI washing. I feel that it's better to just talk about AI and wait until there's a significant progression in the AI front before posting these numbers,” Bendor-Samuel said.
Ramamoorthy disagreed.
“With the widespread adoption of AI, including Genai, Agent AI and physical AI, IT companies are stopping providing these figures as it will be a new way to provide value to their clients,” Ramamoorthy said.
