A STUDY ON FINANCIAL PERFORMANCE ANALYSIS OF SELECTED IT COMPANIES IN INDIA

Abstract

Financial performance evaluation is central to understanding the operational efficiency, profitability, and long-term sustainability of firms operating in India's information technology (IT) sector. This study examines the financial performance of ten major Indian IT companies — Tata Consultancy Services, Infosys, Wipro, HCL Technologies, Tech Mahindra, LTIMindtree, Mphasis, Persistent Systems, Coforge, and Oracle Financial Services Software — over the five-year period from 2021-22 to 2025-26. Using secondary data drawn from company annual reports, NSE and BSE filings, and other published financial sources, the study applies ratio analysis covering liquidity (Current Ratio, Quick Ratio), profitability (Net Profit Ratio, Return on Assets, Return on Equity), solvency (Debt-Equity Ratio), and efficiency (Asset Turnover Ratio), supported by descriptive statistics (mean, standard deviation) and a one-way ANOVA on Return on Assets. The results show that Oracle Financial Services Software and Tata Consultancy Services recorded the strongest liquidity and profitability positions, while companies such as Wipro and Tech Mahindra reported comparatively lower profitability and returns. Most companies maintained low debt-equity ratios, indicating limited reliance on external borrowing. The ANOVA results confirm statistically significant differences in Return on Assets across the selected companies. The study concludes that financial performance varies considerably within the Indian IT sector and recommends that companies strengthen cost control, asset utilisation, and strategic investment to sustain long-term growth.