Indian Fintechs Expect Rapid AI Adoption Despite 84% Respondents Yet to See Financial Payoffs From AI Investments: PwC Survey

• 71% of fintechs are building for 'Disciplined Consolidation' - a scenario where AI advances while capital tightens amid industry consolidation.

India's fintech industry is bracing for a tougher, more consolidated future even as it waits for AI to prove its worth on the balance sheet. As per PwC India’s latest report titled ‘Fit for Future: FinTech 2030,’ 84% of respondents cannot yet point to measurable, AI-driven results in their financial statements. Yet fintech leaders continue to invest in AI aggressively which shows that the industry is expressing optimism in its expectations while resourcing itself for caution.

The survey, conducted among fintech founders, industry leaders and ecosystem participants, shows respondents continue to invest in AI on the basis of its perceived strategic importance rather than proven returns. 48% of leaders named proprietary intelligence as their top strategic bet for the future, with customer experience enhancement emerging as the leading driver of AI agent adoption over the next three to five years (cited by 30% of respondents), followed by cost reduction and productivity gains at 22%.

Rajan Pental, Leader – Financial Services, PwC India said, “Fintech leaders clearly want to believe in an enabling capital environment and rapid AI adoption, but very few are confident enough in that outcome to bet their business on it. Instead, they are preparing for consolidation, tighter capital and tougher governance. That is our survey's clearest signal about how the industry is actually thinking about the next four years."

The survey results reveal a clear split between what the industry expects and what it is actually preparing for. 74% of respondents expect an "enabling" capital and regulatory climate by 2030. But 71% said they are actively building for "Disciplined Consolidation" — a more cautious scenario marked by tighter capital and stronger governance requirements.

Vivek Belgavi, Partner and Leader – Financial Services Advisory, PwC India, said, "India's fintech story over the last decade was built on formalisation, digital onboarding, distribution at scale and growth capital. The next decade will run on a different playbook: programmable digital infrastructure, proprietary intelligence, orchestration over distribution, and trust built by design. The winners will not simply be those who scale fastest, but those who build the most resilient and differentiated institutions."

The report identifies several themes shaping the future of fintech:

• Trust and fraud, not regulation, are seen as the biggest barriers to scaling agentic AI. 41% of respondents cited customer trust and adoption as the greatest barrier to scaling agentic payments, followed by fraud, security and risk management at 33% — a combined 74%. Regulatory uncertainty accounted for just 11%.
• Consumers will share their data freely but will not tolerate added risk. 93% of respondents said customers would allow an AI agent to access their financial data for better recommendations. Yet only 7% said customers would still use an AI agent if it slightly increased fraud risk, even if it saved time.
• Liability for AI-driven errors remains unresolved. When asked who should bear responsibility if an AI agent makes an incorrect financial transaction, no single answer received even a third of respondent support, reflecting how unsettled accountability remains in agentic finance.
• Embedded lending stands out as the industry's preferred long-term opportunity. 77% of respondents named embedded lending as a durable value pool for 2030, 50 percentage points ahead of the next-ranked category, while consumer payments and UPI-adjacent models were seen as the most saturated or overhyped business models today.
• Trust ranks as a low near-term priority despite being a top consumer concern. Trust and transparency were rated the most important attribute for the new-age, digitally native consumer by 55% of respondents, far ahead of lowest cost (10%). Yet designing for consumer trust and volatility ranked last among strategic priorities, cited by only about 10% of respondents as a top 18-month focus.

The findings are based on a primary survey conducted by PwC India with 31 respondents using a structured questionnaire as well as live polling across three moderated discussion areas: Innovation Frontier, Regulation and Compliance, and Value Creation and Investment Lens. Respondent organisations included payments platforms and gateways, consumer fintechs, global payment networks and issuers, cross-border payments businesses, NBFC-adjacent lenders, infrastructure providers, and venture funds.

7 in 10 Indian Banks Run AI in Production; Security and Control, Not ROI, Is Now the Main Brake on Scale: Zeta Survey

7 in 10 Indian Banks Run AI in Production; Security and Control, Not ROI, Is Now the Main Brake on Scale: Zeta Survey

Survey of 40 CXOs across 18 leading banks and NBFCs finds AI live in bounded, reviewable use cases, with roughly three-quarters of technology and risk leaders naming security and data privacy as the leading barrier to going further.

Most banks direct less than 10% of new-project technology spend to AI, and four in ten digital leaders cannot yet point to a high-ROI use case, pointing to value that is real but not yet repeatable.

Zeta today announced the findings of its 2026 CXO survey on the state of AI in Indian banking, based on responses from 40 CXOs across 18 leading banks and NBFCs. AI is now in production at most institutions: 70% of CDO respondents place their banks at selective or scaled deployment, including 30% at scaled deployment. Adoption is strongest in bounded, reviewable areas such as customer service, fraud and risk analytics, document processing and software testing. Integration into end-to-end workflows and consequential decisions is at an earlier stage.

The survey points to a clear divide between piloting AI successfully and deploying it repeatably at scale. Banks have proven that AI works in production. What remains harder is reproducing that success across the institution without rebuilding data, integrations and controls for every new use case. The technology estate is more connected than ever, but the capabilities that make it usable by AI, from permissioned data and AI-operational infrastructure to engineering controls, governance and skills, are developing at different speeds.

Investment reflects this. Most institutions surveyed direct less than 10% of new-project technology spend to AI, including some with AI across multiple functions. The survey suggests this is not a lack of conviction: lack of ROI clarity is the lowest-rated barrier, and executive scepticism and employee resistance rank below skills and security. Banks are measured because control, not appetite, sets the pace.

Key findings from the survey

AI is creating meaningful operational impact, but it remains concentrated in structured workflows.

• - 88% of COO respondents identify retail lending as an area where AI is delivering meaningful impact.
• 75% cite customer service.
• 63% each cite CASA and back-office operations.

Banks are confident about data availability; making it usable for AI is the harder problem.

• 80% of CIOs and CTOs describe their data environment as mostly ready for AI at scale.
• 61% point to insufficient labelled or training data.
• 53% to privacy and consent.
• 46% to siloed data.
• 67% are using or piloting AI to enhance or enrich their data.

Technology assets are connected; making them operable by AI is the next step.

• Real-time data platforms and API-first architectures: 79% adoption.
• Core modernisation and cloud: 64%.
• Advanced analytics and MLOps: 43%.

AI has a foothold in software engineering; adoption thins as AI moves from producing to executing.

• 80% report using AI in testing and QA.
• 60% in code generation.
• 40% in code review.
• 30% each in specifications, documentation, deployment, CI/CD, and incident detection.

Banks are preparing to take AI into consequential decisions; governance is developing alongside.

• 60% of CROs identify AI-led credit-risk models, predictive early-warning systems and real-time fraud decisioning as top priorities.
• 60% say Responsible AI frameworks are under development.
• 20% describe model-risk management as very mature.

AI is changing work before it changes workforce size; internal capability-building is catching up.

• Half of operations leaders expect AI-led productivity gains to release capacity for redeployment.
• None expect workforce reductions above 20%.
• Banks are building AI skills faster through specialist hiring (3.33/5) and external partners (3.0/5) than internal development (1.0/5).

From selective production to repeatable scale

Taken together, the findings suggest Indian banking has moved past the challenge of taking AI from experiment to production. Production adoption is real but selective, concentrated where the problem is well understood, outcomes can be reviewed and existing controls contain the consequences of error.

The question now is whether banks can take what works in these settings and reproduce it across the institution without rebuilding the surrounding data, integrations, controls and engineering practices each time. The survey indicates that this depends on two shared foundations rather than more individual deployments: a core that AI can use, with banking meaning and permissions travelling with the data, and a control layer that establishes what AI may access, decide and execute and keeps a record of it.

“Indian banks have shown that AI creates value in production. The next challenge is making that success repeatable, and the survey is clear about what stands in the way: not conviction, but control,” said Sivaram Kowta, President, Zeta India.

About the Survey

Zeta's 2026 CXO survey on AI in Indian banking draws on responses from 40 CXOs across 18 leading banks and NBFCs, including CIOs, CTOs, CDOs, CROs and COOs. It examines AI adoption and the institutional capabilities required to scale it across data and infrastructure, operations and workflows, engineering and SDLC, governance and trust, and workforce and organisation.

About Zeta:

Zeta is a next-gen banking technology company. Its cloud-native and fully API-enabled platform supports card processing, issuing, lending, core banking, fraud management, loyalty programs, digital banking apps, and more. With over 1,700 employees globally, Zeta empowers financial institutions to innovate and rapidly launch compliant financial products. Globally, customers have issued over 25M cards using Zeta’s platform.

Media Contact:
Aafia Feroze | [9902491526](tel:9902491526) | aafiaf@zeta.tech

Mobile Screens Expose Kids to Triple the Adult Content — Parents Must Act Now

Kaspersky revealed its Q1 2026 data on Indian kids' online activity, revealing a noteworthy pattern on both Windows and Android devices. Communication platforms and self-directed media tools have come to anchor most of children's time online, together accounting for more than three-quarters of all recorded activity on each. Yet categories carrying real-world risk, among them adult content, alcohol, tobacco, narcotics, and gambling, continue to hold a measurable share of that activity, with mobile devices showing meaningfully higher exposure than desktop in several of them. As the data shows entertainment giving way to communication and self-directed learning, it also shows that the categories parents worry about most haven't gone anywhere.

To better understand what Indian children are doing online and help parents navigate the risks that come with it, Kaspersky analyzed anonymized data related to Indian users of Kaspersky Safe Kids across Q1 2026, covering Windows and Android devices separately. The solution itself is regularly recognized in independent tests from top labs, including AV-Comparatives and AV-Test.

On Windows devices

Internet, Communication & Media was by far the most-visited category among Indian children (43.44%), with Software, Audio, Video close behind in second place (34.99%). Together, the two categories made up more than three-quarters of all activity, with News media a distant third at 8.43%. Computer games held a modest 2.60% share, a reminder that gaming, while no longer the dominant force it once was, remains part of children's everyday routine on desktop.

Among the categories Kaspersky is flagging for continued monitoring this quarter for Adult content held a 1.91% share of Windows activity, and Alcohol, Tobacco, Narcotics registered at 0.29%. Individually small, their consistent presence in the dataset is why Kaspersky continues to recommend active, ongoing parental controls rather than a one-time setup.

Altogether, the pattern on Windows points to children's desktop time being anchored in communication and shared media consumption, with risk categories present but contained to a small, steady share, signaling a device where parental oversight, once established, tends to hold.

On Android devices

Android traffic followed a similar top-line pattern, with Internet, Communication, Media (39.86%) and Software, Audio, Video (34.89%) again accounting for roughly three-quarters of activity. But children's exposure to risk categories on Android told a different story entirely: Adult content reached 5.71% of activity, nearly three times its 1.91% share on Windows. E-Commerce (5.70%) and News media (4.69%) were also meaningfully higher on mobile than desktop, while Alcohol, Tobacco, Narcotics held steady at 0.26%, close to the Windows figure of 0.29%.

A notable gap emerged specifically around adult content, which nearly tripled on Android compared to Windows, a clear sign that mobile devices, typically the less-supervised of the two, are where Indian parents may need to focus their attention most closely this quarter. In cases where parents had already activated these category blocks for adult content, gambling, and other harmful sites within Kaspersky Safe Kids, the corresponding visits were being prevented in real time, underscoring the role active parental controls continue to play in curbing this exposure.

"It's encouraging to see that Indian children's time online is still anchored in communication, shared media, and everyday self-expression rather than pure entertainment. But the presence of adult content, narcotics-related material, and unsupervised gaming, even in small shares, is a reminder that curiosity online doesn't stop at the categories parents expect. Mobile devices in particular are where we're seeing that gap widen, and that's exactly where parents need to stay closest," said Jaydeep Singh, General Manager for India at Kaspersky.

Building Real-World Cyber Awareness: The KidZania Partnership

Today's children are digital natives. From a very early age, they are in contact with technology and its benefits, using their devices to watch videos, play online, stay in touch with friends and family, and support themselves in school tasks. It is with this awareness in mind that Kaspersky partnered with KidZania India to open Cyber Investigation Centres in Mumbai and Delhi NCR, a first-of-its-kind role-play establishment giving children a hands-on experience as cyber investigators, learning to detect and respond to online threats well before they encounter them unsupervised.

"This is exactly why we built the Cyber Investigation Centres the way we did, inside a place children already visit to explore the world, not as an add-on to our software. A child who has role-played spotting a phishing attempt at KidZania carries that instinct home, onto the same devices this data is flagging. That's the outcome we're chasing with this partnership, not just downloads, but instinct," said Purshottam Bhatia, Head of Consumer Business, South Asia, Kaspersky.

As part of the KidZania partnership, Kaspersky is currently running a special offer of a 30-day free trial, plus up to 40% off award-winning Premium protection, plus a 1-year Safe Kids subscription worth INR 1,439.

Full details here: Kaspersky | Kaspersky India.

To watch favorite shows safely, Kaspersky recommends the following:

• Maintain open communication with children about potential online risks and establish clear guidelines to ensure their safety.
• Secure gaming experiences by installing a trusted security solution, such as Kaspersky Premium, to prevent malicious file downloads.
• Stay informed about emerging threats and actively monitor children’s online activities in order to create a safer digital environment.
• Introduce children to cybersecurity basics using educational tools like the Kaspersky Cybersecurity Alphabet — a free downloadable book that explains key concepts, cyber hygiene rules, and how to avoid fraud.
• Use digital parenting apps like Kaspersky Safe Kids to protect children both online and offline, manage screen time, block inappropriate content, and track their location for greater peace of mind.

About Kaspersky

Kaspersky is a global cybersecurity and digital privacy company founded in 1997. Innovating the industry with a Cyber Immunity approach, Kaspersky safeguards consumers, businesses, critical infrastructure, and governments from cyberthreats, with over a billion devices protected to date.

Kaspersky ensures Cybersecurity True to Business, focusing on providing clear outcomes, protecting revenue, easing workloads and preventing downtime. Kaspersky’s deep threat intelligence and security expertise is constantly transforming into innovative solutions and services for organizations of every size, from small businesses to large enterprises, combining proven AI-driven protection technologies with simple management and expert support.

Recognized in independent tests and trusted by millions of individuals worldwide and nearly 200,000 organizations, Kaspersky helps detect threats earlier, respond faster and operate with greater confidence and freedom, protecting what matters most to our clients. Learn more at www.kaspersky.com.

Vserve Unveils 2026 Supply Chain Visibility Gap Report to Drive Resilience

Vserve Solution, a global provider of business process and digital transformation solutions, today announced the release of its latest industry report, "Supply Chain Visibility Gap Report 2026."

The report explores growing challenges related to supply chain visibility. This combines industry research of the latest trends and experience of Vserve to assist manufacturers, retailers, distributors, and enterprise executives make decisions and become more resilient.

It occurs against the backdrop of a complex global supply chain environment. The increase in supply networks, rising customer expectations, geopolitical uncertainty risks, and the rapid digital transformation reshaping business operations. Despite the considerable investments in technology, the issue of data silos and lack of visibility persists.

"Today, the supply chains are producing more data than ever before. But data doesn’t equal visibility. What companies need is connected information to drive better decisions and better operational resilience. This is what we hope to contribute with this report by bringing in insights based on industry research," says Siva Balakrishnan, Spokesperson, Vserve eBusiness Solutions.

Using industry research as well as operational observations, the report analyzes the issues behind this challenge of lack of visibility and provides a set of actionable recommendations.

Some of the key observations from the report include:

• The supply chain visibility has emerged as a strategic business capability.
• Fragmented data continues to limit operational performance.
• AI delivers greater value when supported by connected, high quality data.
• Strong governance and integrated processes are essential for long term resilience.
• Case studies from IBM, Microsoft, and Walmart demonstrate how leading enterprises are improving visibility through AI, control towers, and inventory intelligence.

Developed for enterprise supply chain leaders, the report brings together insights from leading industry research and Vserve's experience supporting global supply chain operations. It is intended to help organizations better understand today's visibility challenges and identify practical approaches for building more connected and resilient supply chains.

The report, "Supply Chain Visibility Gap Report 2026: Operational Insights from Enterprise Supply Chain Environments," is now available on the Vserve eBusiness Solutions website.

Independent Compliance Audits Needed for India’s 69,000 Obligations: TeamLease RegTech

Mr. Rishi Agarwal, Co-Founder and CEO, TeamLease RegTech

Indian enterprises invest significantly in statutory, internal and operational audits, yet many continue to discover compliance failures only after a regulatory inspection, a show-cause notice or an enforcement action. According to TeamLease RegTech's latest whitepaper, The Compliance Blind Spot: A Board-Level Advisory, the problem is structural; none of the audits an enterprise routinely commissions are designed to independently assess whether it is meeting its legal obligations across the full spectrum of applicable central, state, and local laws.

According to the report, Indian businesses today operate under an exceptionally complex regulatory framework comprising more than 1,530 Acts and Rules, requiring adherence to over 69,000 statutory compliance obligations across licences, filings, registers, inspections, disclosures and operational requirements. Enterprises are also responsible for managing more than 6,600 statutory filings across multiple regulators, while keeping pace with approximately 13,000 regulatory updates issued every year through nearly 3,750 government websites. Adding to the compliance burden, the report finds that more than 26,000 statutory provisions across Indian laws carry imprisonment clauses for directors, key managerial personnel and designated officers. Of these, nearly 80% are embedded in state legislation, while 68% are found under labour laws, underscoring the significant personal liability associated with regulatory non-compliance.

The report notes that compliance risks are no longer limited to missed filings. Based on observations from compliance audits, around 70% of compliance risks arise from event-based, licence-related and operational obligations, while periodic filing-related compliance accounts for only about 30% of the overall risk exposure.

The study also highlights that compliance performance varies significantly across business units. Analysis of representative enterprise audits found compliance levels ranging from 79% in manufacturing plants to 61% in warehouses, indicating that operational locations continue to remain the weakest link despite strong corporate governance frameworks.

Large enterprises face an even greater challenge. A representative manufacturing enterprise with multiple plants and warehouses was found to manage more than 3,800 compliance obligations, with over 800 instances of non-compliance identified across locations.

The report further finds that contractor ecosystems create a significant blind spot for enterprises. Contractors often account for 40% to 70% of the workforce at industrial establishments, yet contractor compliance, including PF, ESIC, wages, and statutory documentation, remains insufficiently monitored, despite principal employers retaining statutory liability.

A statutory audit confirms whether the books are in order. An internal audit examines business processes and operational controls. An ISO audit assesses adherence to quality standards. What none of them does is answer a more fundamental question: is the organisation actually compliant with the laws that apply to it? The whitepaper argues that this gap, the absence of an independent compliance audit, is the single largest source of undetected regulatory risk in Indian enterprises today.

The report explains what a compliance audit is designed to do and why existing assurance mechanisms cannot substitute for it. A compliance audit independently assesses applicability, whether the organisation has correctly identified every law, rule, and regulation that applies to each of its locations and operations. It examines evidence, whether obligations are not just tracked but actually fulfilled, with supporting documentation that would withstand regulatory scrutiny. It validates on-ground reality, whether physical infrastructure, workplace conditions, and statutory registers match what is reported on paper. And it reconciles what the organisation believes its compliance position to be against what an independent assessor, applying the same lens as a regulator, actually finds.

This matters because compliance failures in Indian enterprises are increasingly operational rather than administrative. The whitepaper identifies six areas that traditional audit programmes consistently overlook but that regulators routinely examine: applicability errors arising from one-time assessments that are never revisited as operations, workforce, or processes change; contractor compliance gaps, where the principal employer carries direct statutory liability for PF, ESIC, and wages but treats contractor oversight as a procurement function; licence and consent mismatches, where a renewed licence does not necessarily mean a valid consent; state-level regulatory variations, where compliance in one jurisdiction does not transfer to another; physical infrastructure deficiencies- expired fire extinguishers, blocked emergency exits, untested earthing pits, missing PPE that constitute immediate non-compliance regardless of what documentation shows; and regulatory notices that reach plant-level but are never escalated to head office.

Another key finding is the pace of regulatory change. With 13,000 regulatory changes every year, an organisation conducting only annual compliance reviews could accumulate 90 to 270 days of undetected compliance exposure between audit cycles as laws, forms, thresholds and reporting requirements continue to evolve. It also observes that most enterprises self-assess their compliance maturity one to two levels higher than where an independent assessment places them. The gap is not a question of intent; it arises because the teams responsible for compliance are also the ones reporting on it, and no other function within the organisation is tasked with independently verifying their conclusions.

This is where the compliance audit plays its most critical role: it separates compliance monitoring from compliance assurance. Monitoring- tracking obligations, filing returns and maintaining registers- is a day-to-day operational function. Assurance- independently verifying that monitoring is accurate, complete, and reflective of ground reality, is an audit function. The whitepaper argues that conflating the two is the root cause of most compliance blind spots. An organisation that relies on the same team to both execute and validate compliance is, in effect, marking its own examination.

Commenting on the findings, Rishi Agrawal, Co-founder and CEO, TeamLease RegTech, said, "There is a fundamental confusion in Indian enterprises between statutory audits, internal audits, and compliance audits. A statutory audit tells you whether your books are in order. A compliance audit tells you whether your compliance is in order, whether you are actually meeting the regulatory obligations that apply to you across 7 categories of law and 41 distinct compliance types spanning Union, State, and Local bodies. Statutory and internal audits serve very different objectives. They don't assess applicability, examine evidence, verify calculations, reconcile duties and interests, flag delays, or scrutinise licensing obligations, among other things. The larger problem is that regulations evolve continuously from a regulator's standpoint, but inside the organisation, compliance stays frozen at the point someone last looked at it. Nobody updates it, nobody tracks it until a regulator or inspector shows up, and the organisation discovers, often in real time, that it has been operating in violation. What follows is panic, penalties, show-cause notices, and reputational damage that no balance sheet captures. Periodic audits help you stay compliant by design rather than by accident."

The report recommends that organisations take three specific steps. First, commission an independent baseline compliance audit, scoped not just across filings and returns, but across applicability, evidence, on-ground conditions, and the full contractor ecosystem at every entity and location. Second, institutionalise continuous compliance assurance as a function distinct from compliance operations, so that monitoring and validation do not sit with the same team. Third, elevate compliance from a departmental activity to a board-level governance risk, with defined ownership at operating, accountable, and governance levels, and quarterly reporting to the Audit Committee grounded in evidence rather than self-certification. The whitepaper references Section 134(5)(f) of the Companies Act, which places the obligation to ensure compliance systems squarely on the board, not on the compliance team.

About TeamLease RegTech

TeamLease RegTech is India's leading regulatory technology company, helping over 3,300 entities stay on the right side of the law. As an AI-enabled SaaS platform, it manages over 25 million compliance instances, more than 5 million compliance documents and tracks regulatory changes across 3,700+ government websites. A subsidiary of TeamLease Services, the company envisions building a national open compliance grid for Digital India.

Corporate India’s evolution: Scale, earnings and diversification

The Nifty 500’s evolution over the past 26 years captures the structural transformation of corporate India—from a commodity- and manufacturing-heavy universe at the turn of the millennium to one increasingly shaped by financial intermediation, services and domestic demand.

Financials’ share of constituents rose from 8.0% in March 2000 to 19.8% in March 2026, while their market-cap share increased from 7.2% to 25.9%.

Index market capitalisation rose from Rs.7.3 lakh crore to Rs 372.2 lakh crore.
Based on FY26, the Profit After Tax (PAT) margin reached a record 10.9%, while the Nifty 50’s share of Nifty 500 profits fell from 87% in FY18 to 51% in FY26.

Market capitalisation growth and composition of Nifty 500

Market capitalisation of NSE-500 companies expanded at a CAGR of 16.3% between March 2000 and March 2026, rising about 51-fold despite repeated market disruptions.
It fell 33.6% during the global financial crisis and 24.2% during the COVID-19 sell-off but recovered strongly thereafter.

Expansion accelerated after March 2020, supported by earnings, domestic liquidity, wider participation and new listings.

Sectoral mix changed materially: Financials became the largest sector by market value. Consumer Discretionary increased its market-cap share from 5.0% to 11.3%, even as Consumer Staples declined from 13.2% to 6.5%.
Scale also increased across market segments: the large-cap threshold rose 122-fold to Rs 95,000 crore, while the mid-cap threshold increased 180-fold to Rs 28,700 crore by March 2026.

Corporate performance: Structural trends and business cycles

Corporate earnings grew faster than revenues over the long term.

Aggregate Nifty 500 sales increased at a CAGR of 14.8% to Rs 164.8 lakh crore, while PAT rose at 17.4% annually to ~Rs 18 lakh crore.
Between FY03 and FY26, net sales increased 21.5-fold and PAT 31-fold.

For non-financial companies, EBITDA reached Rs.23.9 lakh crore after growing at a CAGR of 15.1%.

Growth in net sales moderated in the latest decade, but profitability broadened.

Sector-wise trends: Performance, and contribution

Financials increased their share of Nifty 500 net sales from 14.6% in FY00 to 25.6% in FY26, overtaking Energy as the largest revenue contributor in FY25 and FY26.

Their share of aggregate PAT rose from 24.9% to 38.5%, supported by credit growth, financial inclusion, stronger balance sheets and improved asset quality.

Energy’s revenue share moderated to 23.1% in FY26, while Materials declined from 23.5% to 12.4%, signalling a gradual reduction in the dominance of commodity-linked sectors.

Profitability strengthened across industries: Healthcare PAT margin rose from 11.5% in FY00 to 15.6% in FY26, Utilities reached 13.5%, Industrials recovered to 8.9%.

Information Technology remained high-margin but its PAT share eased from 17.0% in FY20 to 8.5% in FY26.

Over FY22–FY26, growth became more balanced: Real Estate recorded the strongest five-year sales and PAT CAGRs, while Industrials and Financials combined double-digit revenue growth with strong earnings expansion.
Defensive sectors such as Consumer Staples and Health Care remained relatively stable across business cycles.

FY26 corporate performance: A snapshot

Nifty 500 net sales grew 8.5%, EBITDA 9.9% and PAT 15.4%, compared with 8.1%, 7.4% and 9.1% for the Nifty 50.

Excluding Financials, Nifty 500 PAT growth was stronger at 19.2%.

Aggregate Nifty 500 PAT margin rose 65 basis points to 10.9%.

Sectors	Nifty 50			Nifty 500
	Net sales (% YoY)	EBITDA (% YoY)	PAT (% YoY)	Net sales (% YoY)	EBITDA (% YoY)	PAT (% YoY)
Communication Services	22.0%	24.8%	31.1%	15.3%	18.7%	132.5%
Consumer Discretionary	9.5%	-8.7%	-13.0%	11.4%	-0.2%	-1.5%
Consumer Staples	6.6%	4.4%	7.1%	11.4%	6.5%	8.3%
Energy	5.5%	10.6%	13.9%	3.8%	26.5%	41.8%
Financials	7.4%	6.4%	6.9%	8.0%	7.0%	9.7%
Health Care	8.7%	1.6%	-2.5%	12.7%	12.3%	11.9%
Industrials	10.0%	12.5%	-11.6%	11.7%	11.3%	1.7%
Information Technology	7.1%	6.8%	9.3%	10.2%	10.8%	13.9%
Materials	12.2%
Materials	12.2%	26.3%	58.1%	12.1%	18.5%	32.8%
Real Estate	NA	NA	NA	21.6%	19.2%	21.4%
Utilities	0.1%	-9.2%	9.8%	2.8%	-1.2%	3.0%
Total	8.1%	7.4%	9.1%	8.5%	9.9%	15.4%
Total Ex-Energy	8.9%	6.9%	8.0%	10.0%	8.1%	11.4%
Total Ex-Financials	8.2%	8.5%	10.3%	8.7%	13.4%	19.2%
Total Ex-Energy Ex-Fin	9.6%	7.6%	8.9%	11.0%	9.8%	12.9%

Earnings concentration analysis

The distribution of corporate performance has broadened materially.

The Nifty 50’s share of Nifty 500 net sales rose from 42% in FY00 to 57% in FY20, before declining to 46% in FY26.

Its share of aggregate PAT fell more sharply, from 87% in FY18 to 51% in FY26.

The remaining Nifty 500 constituents have therefore become increasingly important to revenue and profit generation.

Concentration measures confirm this shift: The Herfindahl–Hirschman Index (HHI) for Nifty 500 net sales declined from 185 in FY00 to a record low of 88 in FY26.

EBITDA concentration fell from 46 to 20 and PAT concentration from 225 to 80.
Communication Services remained the most concentrated sector in FY26, but aggregate evidence points to a wider distribution of revenues and earnings across companies and sectors.

The entire report can be accessed in the latest edition of Market Pulse July 2026 (Page 28 onwards)

HCLTech Report Exposes Widening AI Divide With Only 18% of Enterprises Seeing Revenue Impact Despite Near-Universal Adoption

HCLTech, a leading global technology company, today released its global research report, The Blueprint for AI Leadership, revealing a widening gap between organizations adopting AI and those realizing meaningful business value.

The study, conducted with Raconteur among 500 enterprise decision-makers, shows that AI adoption is no longer the constraint. 90% of organizations report that GenAI and Agentic AI are transforming workflows, with 91% citing improved data access and 90% reporting productivity gains.

However, alarmingly, only 18% say AI is delivering significant revenue impact, exposing a critical gap between operational progress and business outcomes. These enterprises have emerged as AI Leaders by not just adopting AI, but by systematically converting it into growth, innovation and customer experience advantage. These enterprises are four times more likely to scale agentic and autonomous AI, with superior execution in defining measurable use cases (73% vs. 22%) and securing senior leadership sponsorship (63% vs. 36%).

The lagging enterprises that act as AI Followers remain trapped in incremental gains, evaluating AI through efficiency and cost lenses alone, limiting their ability to compete on differentiated outcomes or scale impact enterprise wide.

The divergence is sharpest in foundations. AI Leaders have integrated AI into business strategy, built data readiness and are far ahead in workforce transformation, with 93% having structured upskilling programs, compared to just 20% of AI Followers.

Critically, Leaders are embedding AI into core workflows and decision-making, enabling scaling, adaptability and continuous improvement, capabilities AI Followers are yet to institutionalize. This shift from deploying tools to orchestrating enterprise-wide transformation is the defining advantage in AI maturity.

“AI has entered a decisive phase, and success will come down to how well organizations bring people, data and technology together,” said Pawan Vadapalli, Corporate Vice President and Global Head, Digital Business Services at HCLTech. “The organizations pulling ahead are not just running more pilots; they are rethinking how the business works, embedding AI into everyday decisions and workflows. It is this coordinated shift across leadership, culture and foundations that turns AI from a tool into real, long-term advantage.”

To access the full report, please visit: The Blueprint for AI Leadership: AI ROI Report | HCLTech

UPI Biometric Payments Surge Past 600 Million Transactions in June

• On-device biometric authentication also supports RuPay Credit Card on UPI transactions, delivering a faster, secure and seamless payment experience.

UPI on-device biometric authentication-based payments accounted for over 611 million transactions in June 2026, with a total transaction value of ₹25,416 crore, reflecting strong adoption across everyday payment use cases. The feature enables users to authorise UPI payments using smartphone’s fingerprint or facial recognition.

UPI users are increasingly adopting biometric-based authentication for everyday payments, marking a significant shift towards faster, simpler and more intuitive digital payment experiences. The feature supports both Person-to-Person (P2P) and Person-to-Merchant (P2M) payments, making routine payments quicker and more seamless for users.

Biometric authentication is also available for RuPay Credit Card on UPI transactions, enabling PIN-free credit payments through UPI, extending the same speed and convenience to credit transactions as it does for savings account payments.

Sohini Rajola, Executive Director - Growth, NPCI, said, “The growing adoption of biometric authentication reflects the increasing preference among UPI users for payment experiences that are simple and efficient. With over 600 million transactions in June, the solution is seeing strong acceptance across use cases, including RuPay Credit Card on UPI. Several banks and UPI apps already offer biometric authentication to their customers, and we expect adoption to grow further as more users choose this secure and convenient way to make payments.”

By using on-device fingerprint or facial recognition, biometric authentication reduces dependence on UPI PINs, enables faster transaction completion and improves success rates.

With ecosystem enablement expanding across banks and UPI apps, biometric authentication is set to play a growing role in how Indians pay every day. NPCI expects the feature to see continued adoption in the months ahead, further strengthening UPI's position at the forefront of secure, frictionless digital payments.

National Payments Corporation of India (NPCI) is the umbrella entity responsible for operating retail payments and settlement systems in India. It is established by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA). The Company is focused on bringing innovations in the retail payment systems by using technology for achieving greater efficiency in operations and widening the reach of payment systems. NPCI is committed to harnessing the transformative potential of deep tech, creating an ecosystem that fosters collaboration to work on breakthrough technologies. Underlining its commitment to service, NPCI has been incorporated as a “Not for Profit” Company to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems.

NPCI has made a profound impact on India's retail payment landscape, focusing on creating robust, efficient, and inclusive payment and settlement solutions. NPCI has been instrumental in introducing a range of products that have revolutionised retail payment systems. These include Unified Payments Interface (UPI), RuPay, National Automated Clearing House (NACH), Immediate Payment Service (IMPS), National Electronic Toll Collection (NETC), Aadhaar Enabled Payment System (AePS), e-RUPI and more. Each of these products has contributed significantly to enhance the efficiency and accessibility of payment systems in India, ultimately propelling financial inclusion.

NPCI has played a fundamental role in establishing the foundation for India’s rapidly growing digital payments ecosystem, projecting the country onto the global stage.

NPCI has three wholly owned subsidiaries – NPCI International Payments Limited (NIPL) and NPCI Bharat BillPay Limited (NBBL) and NPCI BHIM Services Limited (NBSL), established in pursuance of NPCI Board & RBI approval.

For more information visit: https://www.npci.org.in/

Business Loans to Entrepreneurs Grew Faster Than Those to Commercial Entities Over Three Years

• Individual borrower business-oriented loans balances grew 1.8 times between March 2023 and March 2026, outpacing entity borrower balance growth at 1.5 times.
• Substantial scope for expansion in MSME credit access, with nearly 41% commercial enterprises having formal credit access in entity or individual capacity
• Overall commercial portfolio remained stable at 1.8% as of March 2026. The analysis identified emerging signs of risk in specific borrower segme

India’s commercial credit market is seeing a shift in borrower composition, with individual borrowers with business-oriented loans now forming a meaningful share of overall commercial credit balances, according to the latest MSME Pulse released by TransUnion CIBIL and the Small Industries Development Bank of India (SIDBI).

Loans to individuals accounted for 28% of outstanding commercial balances, while loans to entities accounted for 72%. Individual borrower balances grew 1.8 times during the three-year period between March 2023 and March 2026, compared with 1.5 times growth in entity borrower balances during the same period.

The report finds that outstanding commercial credit stood at ₹65.8 lakh crore as of March 2026, across 4.4 crore active commercial trades. This is a year-over-year (YoY) growth of 14% compared to the total outstanding credit of Rs 57.9 lakh crore as of March 2025.

Chart 1: Individual Business Borrowers Credit Profile

Individual Borrowers Form a Sizeable Business Credit Segment

As of March 2026, 2.8 crore individual borrowers had active business-oriented loans. Of these borrowers, 43% were early-stage as commercial entities with credit history of less than 24 months, highlighting a borrower segment that is active in business-purpose borrowing while still being relatively new as commercial entities. Almost half (48%) the share of the total Non-Banking Financial Companies’ (NBFCs) Commercial Balances pertained to Individual Borrowers. All other lender categories have a much lower share, with private banks the second largest at 24% of the commercial balance share among individual borrowers.

The individual borrower segment has been increasingly visible across key commercial credit products. Loans against property formed the largest share of outstanding balances for this borrower group, followed by commercial vehicle loans and unsecured business loans. At a product level, individual borrowers accounted for 68% of loan against property balances, 76% of commercial vehicle balances and 67% of unsecured business loan balances. The report notes that loans against property, commercial vehicle loans, unsecured business loans, term loans, overdraft and cash credit together formed ~87% of outstanding commercial credit balances.

Bhavesh Jain, MD & CEO, TransUnion CIBIL, said: “In India’s MSME economy, the entrepreneur and the enterprise are often deeply connected, particularly in the early years of business growth. A proprietor may borrow in an individual capacity, but the credit is frequently linked to business activity, working capital needs or asset creation. This makes individual business borrowing an integral part of how commercial credit is evolving, and it deserves to be understood within the broader MSME credit landscape.

 
As MSMEs grow, their credit needs also change, from small-ticket working capital to larger, sector-led funding requirements. The real opportunity for the credit ecosystem lies in understanding this progression with greater clarity, especially as borrowers move from individual business borrowing to entity-level credit, or from trade-led borrowing to manufacturing-led expansion.”

Formal Credit Access Remains a Large Opportunity

The share of new-to-credit (NTC) entities in origination volumes declined from 52% in FY23 to 42% in FY26, indicating that the pace of first-time formal credit onboarding has moderated in recent years. 

Chart 2: NTC Opportunity Sizing

NTC originations among commercial entities were concentrated in smaller ticket sizes. The report finds that 60% of these originations were in the ₹2 lakh to ₹10 lakh ticket-size segment, while 34% were in the ₹10 lakh to ₹2 crore segment. It also notes that 75% of ₹2 lakh to ₹2 crore NTC entity borrowers had prior retail credit experience, showing that first-time entity borrowers may enter formal commercial credit through different borrower pathways.

Emerging Pockets Of Risk in Specific Borrower Segments

While overall commercial credit portfolio performance remained stable as of March 2026, the report indicates elevated delinquency levels in certain borrower and product segments. Delinquency (measured as share of balances in 90+ Days Per Due (DPD) or classified sub-standard) in unsecured business loans to entities stood at 7.2%, up 274 basis points (bps) over three years. The ₹2 lakh to ₹10 lakh entity borrower segment recorded delinquency of 5.6%, up 111 basis points over the same period.

Signs of stress were also seen in early delinquencies (measured as accounts ever in 90+ DPD in first 12 months since origination) as well, for both unsecured business loans to entities and for the ₹2 lakh to ₹10 lakh entity borrower segment. For originations in the March 2025 ending quarter, for unsecured business loans to entities, early delinquencies were 2.9 times higher, while for the ₹2 lakh to ₹10 lakh entity borrower segment, early delinquencies were 2.1 times higher than the overall early delinquency of 3.4% for loans to entities originated in the same period.

Sectoral Patterns Point to Different MSME Credit Structures. 

The report shows that commercial credit patterns vary across sectors by exposure size and geography. Textiles, professional services, wholesale trade and infra-linked industries are led by the ₹10 lakh to ₹2 crore exposure segment. Maharashtra and Gujarat the leading states across key industries such as textiles, food processing. The report identifies manufacturing as a sector with strong concentration in industrial clusters.
Trade showed a different pattern, with retail trade anchored in the ₹2 lakh to ₹10 lakh exposure segment and wholesale trade led by the ₹10 lakh to ₹2 crore segment basis share of entities with live loans. Uttar Pradesh ranked first in both retail and wholesale trade counts, while Uttar Pradesh, and West Bengal appeared among the other leading states. In professional services, the report shows a higher share of entities in small exposure segments of ₹10 lakh to ₹2 crore, with Maharashtra, Karnataka and Tamil Nadu among the leading states.

Mr Jain said: “MSMEs remain central to India’s enterprise base, employment creation and regional economic growth. As more small businesses seek formal credit, it is important to recognise the diversity within the MSME segment. A micro enterprise seeking working capital, a trade borrower operating in a local market and a manufacturing unit looking to scale will have different credit needs, business cycles and growth paths. Expanding formal credit access for MSMEs has to go hand in hand with a deeper understanding of these differences. A more granular view across sectors, ticket sizes and geographies can help the ecosystem serve smaller and emerging enterprises while maintaining a focus on sustainable credit growth.”

About TransUnion CIBIL

India’s pioneer information and insights company, TransUnion CIBIL, makes trust possible by ensuring each person and business entity is reliably represented in the marketplace. We do this by providing an actionable view of consumers and businesses, stewarded with care.

We have developed technology and innovative solutions across core credit, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences, and personal empowerment for millions of people and commercial enterprises in India.

We serve the financial sector as well as commercial enterprises and individual consumers. Our customers in India include banks, credit institutions, NBFCs, housing finance companies, microfinance companies, telecom companies and insurance firms.

For more information visit www.transunioncibil.com

About SIDBI

Since its formation in 1990, SIDBI has been touching the lives of citizens across various strata of society through its integrated, innovative and inclusive approach for all round development of MSMEs. SIDBI has directly or indirectly through various credit and developmental measures impacted the myriad Micro, Small and Medium Enterprises (MSMEs) in the country, whether they are traditional, domestic small entrepreneurs, bottom-of-the-pyramid entrepreneurs, or high-end knowledge-based entrepreneurs.
For more information, please visit: https://www.sidbi.in/

Sierra EV Sparks Tata’s Premium Charge: YES Securities Report Highlights Bold Strategy for 2x Growth by FY31

Tata Motors Passenger Vehicles (TMPV) has unveiled the Sierra EV, marking a decisive step in its premium electric vehicle (EV) strategy. The launch underscores Tata’s intent to move beyond affordability-driven positioning and instead emphasize technology, performance, and premium ownership value.

In a detailed company update released by YES Securities, Tata Motors Passenger Vehicles (TMPV) has been spotlighted for its bold entry into the premium EV SUV segment with the launch of the Sierra EV. The report emphasizes that Tata is shifting its strategy away from affordability-driven competition and toward a technology and performance-led positioning, supported by advanced features, dual powertrain options, and a lifetime battery warranty. With introductory pricing in the ₹18–26 lakh range, the Sierra EV is positioned to reinforce Tata’s premium brand perception while aligning with its long-term ambition of achieving 2x industry growth and 20% market share by FY31.

The launch of Sierra EV at premium pricing depicts TMPV’s strategy of rather than competing purely on affordability, it is slowly shifting focus towards a technology and performance-led positioning supported by extensive features and a lifetime battery warranty.

While the pricing versus rivals appears to be higher, the Yes Securities report said that the premium is largely justified by the product's differentiated appeal. In line with Harrier EV, it expects the Sierra to have 30-40% powertrain mix. This should strengthen Tata's brand perception in premium EVs and support margins over the medium term. Early customer acceptance and sustained production ramp-up will remain key monitorable, particularly as competition intensifies across the Rs18–26 lakh EV SUV category.

Premium Positioning and Market Strategy

The Sierra EV enters the aspirational mid-SUV segment with introductory prices between ₹18.79–25.99 lakh, positioning it above rivals such as Maruti Suzuki’s E Vitara (₹15.99–20 lakh) and Hyundai’s Creta EV (₹18.03–24.7 lakh). TMPV is betting on differentiated appeal through:

• Price Range: ₹18.79–25.99 lakh, positioned above rivals like Maruti Suzuki’s E Vitara and Hyundai’s Creta EV.
• Performance: 50% higher power and torque compared to ICE variants, AWD dual-motor option.
• Battery: 63 kWh and 75 kWh packs, real-world range of 460–530 km.
• Warranty: Lifetime battery warranty (15 years), first in India.

This premium approach is expected to strengthen Tata’s brand perception in EVs and support margins, even as competition intensifies in the ₹18–26 lakh EV SUV category.

EV bookings have increased 3x in the past 2–4 months. This is not a blip, it is a structural change, management noted, highlighting rising consumer confidence.

Industry Outlook and TMPV Ambitions

By FY31, the Indian PV industry is expected to reach 6.4 million units, with:

• SUV dominance: >60% of volumes.
• EV penetration: 15–20%.CNG + EV combined share: >45%.
• Median ASP: ~₹15 lakh, reflecting premiumization.

TMPV’s ambition is to outpace industry CAGR (~6–7%) with ~15% growth, targeting:

• 1.2 million annual sales.
• ~20% market share.
• Expanded portfolio: 15 nameplates, including six new launches and 20+ facelifts.
• 80%+ addressable market coverage by FY31.

Competitive Edge: Specifications Snapshot

The Sierra EV stands out among peers on several parameters:

Specification	Sierra EV	E Vitara	Creta EV	Harrier EV
Battery (kWh)	63–75	49–61	42–51.4	65–75
Range (km)	565–665	550	390–473	538–627
Motor Power (bhp)	209–238	142–172	133–169	235–390
Torque (Nm)	315	195.5	255	504
Warranty	15 yrs	8 yrs	8 yrs	10 yrs
Price (₹ lakh)	18.79–25.99	15.99–20.01	18.03–24.70	21.49–30.23

Manufacturing & Network Expansion

TMPV is scaling up production capacity from 0.9 million to 1.3 million units annually through plant expansions (Sanand, Panapakkam) and supplier localization. It also plans:

• Production capacity to scale from 0.9m to 1.3m units annually.
• 2x growth in sales network and 3x growth in service network by FY31.
• First Indian automaker to use locally assembled semiconductor chips.
• Cost reduction strategy: 5–6% savings in ICE, lower battery costs in EVs, platform sharing.

Financial Outlook

TMPV’s financial trajectory reflects strong growth potential:

• Net Income: ₹3,356 bn (FY26) → ₹4,704 bn (FY28).
• Adj. EPS: ₹4.0 (FY26) → ₹48.6 (FY28).
• RoE: 1.3% (FY26) → 14% (FY28).
• P/E: 86.9x (FY26) → 7.2x (FY28).

YES Securities maintains an ADD rating with a target price of ₹405, implying a +16.5% potential return.

Conclusion

The Sierra EV is more than a product launch—it is Tata Motors’ statement of intent to dominate the premium EV SUV space. With performance-led engineering, lifetime battery assurance, and aggressive portfolio expansion, TMPV is positioning itself to capture a significant share of India’s evolving EV market.

AI Boom Is Creating a ‘Human Skills Economy’ as Indian Firms Accelerate Adoption: IWG Study

• 90% of HR leaders warn innovation will slow without human traits and qualities
• 65% say AI can’t replace empathy; 53% say leadership remains uniquely human
• India has the world’s highest rate of AI adoption and one of its youngest workforces, making human skills the sharpest edge in a tightening jobs market

As Indian companies accelerate AI adoption and focus on technical upskilling, new research from International Workplace Group (IWG), the world’s leading platform for work, suggests that the next workforce challenge is building the human capabilities needed to use AI creatively and collaboratively.

According to IWG’s survey, the vast majority (90%) of HR leaders believe that failing to prioritize human capabilities is a risk to innovation. This finding reflects the emergence of a new “Human Skills Economy,” in which empathy, judgment, creativity, and leadership are core to business performance.

Rise of AI: A New Operating Reality for Work

AI is now deeply embedded in everyday workflows across organizations. IWG’s survey of hundreds of HR and recruitment leaders revealed that 73% of hybrid teams are already using tools like ChatGPT and 82% of organisations offer AI training. However, HR leaders say their readiness must accelerate to keep up, with fewer than half (45%) saying they are effectively closing the skills gap, suggesting a significant number of organisations are still lagging in effective AI use.

The findings are particularly relevant for India, where organisations are rapidly moving towards AI-enabled ways of working. India leads the world in workplace AI adoption, with 73% of workers using AI tools regularly, well ahead of the United States (45%) and the United Kingdom (29%).

According to Microsoft’s 2025 Work Trend Index India findings, 93% of Indian business leaders intend to use AI agents to extend workforce capabilities within the next 12–18 months. This acceleration makes the development of human skills such as empathy, judgment, leadership and collaboration even more critical as companies redesign work around human-AI collaboration.

Humans + AI: The New Performance Model

As the labour market tightens - particularly at the entry level - employers are being forced to rethink what truly drives performance. Research from Randstad and the Institute of Student Employers shows that entry-level vacancies fell by 29% globally between January 2024 and the end of 2025, raising the bar for what differentiates candidates.

In India, that squeeze is already visible in the sector that defined its rise, with entry-level IT roles down an estimated 20 to 25% as automation absorbs routine work, even as the country fields one of the world’s youngest workforces.

While Gen Z brings a clear advantage in technological fluency, skills alone are no longer enough. The real differentiator is AI literacy: the ability to meaningfully apply AI tools in day-to-day work to unlock productivity and new ways of thinking.

In fact, research from International Workplace Group shows that nearly two-thirds of younger employees are already helping older colleagues adopt AI, from hands-on coaching to embedding tools into everyday workflows.

Against this backdrop, a new performance model is emerging, in which AI handles technical and repeatable tasks, and human capabilities define impact, leadership, and long-term value. HR leaders are clear about where humans remain essential:

• 65% say AI will never replicate human empathy
• 64% say it falls short in complex decision-making
• 53% say leadership will remain uniquely human

At the same time, boundaries are still evolving. Only 40% believe creativity will remain beyond AI’s reach, signalling a continued shift in how organisations define the line between human and machine capability.

Elements That Can’t Be Replicated: The Enduring Value of Human Skills

Even as automation expands, human skills are becoming the most durable source of competitive advantage. While 40% say missing AI or technology skills can disqualify candidates, two-thirds (66%) of HR leaders now say applicants’ ability to demonstrate human skills matters most in hiring, ranking above experience, technical skills, and education.

This shift is also reflected in evolving hiring signals: 45% of employers say they look for context around career moves and gaps to better understand a candidate’s overall experience and trajectory.

In India, industry body NASSCOM has noted that India has the capacity to reskill and develop 8 -10 million professionals in AI-related services by 2030. Deloitte and NASSCOM have also estimated that India’s AI talent demand could grow from 600,000–650,000 to more than 1.25 million between 2022 and 2027, while noting that a shortage of qualified professionals could slow innovation and growth. This makes the combination of AI fluency and human capabilities central to India’s future workforce readiness.

Further, more than half (55%) of HR leaders say hybrid workplaces are among the most effective settings for building empathy, judgment, and leadership skills, underscoring how hybrid work environments are seen as spaces where essential human traits like trust, mentorship, collaboration, and decision-making are actively developed and reinforced.

The Bottom Line

As AI reshapes work, organisations face a clear mandate. Success now depends not just on adopting new technologies, but also on strengthening human capabilities and helping technology and humans work as true teammates.

The future belongs to companies that integrate AI while intentionally building environments where human skills thrive.

Mark Dixon, CEO & Founder of International Workplace Group, commented: “Every major technological shift has redefined how we work — from the rise of the internet to email to smartphones. AI is no different, but what sets this moment apart is the speed and scale of change. Some roles will evolve or disappear, while entirely new ones will emerge.

As always, the organisations that resist transformation will fall behind. A key advantage will belong to those that combine AI’s efficiency with the uniquely human skills that drive innovation, leadership, and growth.”

Harsh Lambah, India Country Manager and VP Sales of South Asia at International Workplace Group, commented: “India is uniquely well positioned to lead the new 'Human skills economy' given that it has the world’s youngest workforce, and the fastest rate of AI adoption. The workplaces that will win in this new economy are the ones where people and AI grow together, and that is exactly what we are building across the country.”

Methodology:

The IWG Human Skills Economy Report was conducted in April 2026 by Mortar Research and targeted 510 U.S.-based HR, recruitment and hiring managers.

About International Workplace Group PLC

International Workplace Group (IWG) is the world’s leading platform for work enabling companies of all sizes to work more productively and profitably. We create personal, financial, and strategic value for the most exciting companies and well-known organizations on the planet as well as individuals and the next generation of industry leaders. All of them harness the power of IWG’s platform to increase their productivity, efficiency, agility, and market proximity.

International Workplace Group’s unrivalled network coverage includes more than 5,000 locations across 120 countries and 83% of Fortune 500 companies are amongst our growing customer base.

Our brands including Regus, Spaces, HQ and Signature serve millions of people, providing professional, inspiring and collaborative workspaces and all our digital services are available via the IWG app.

37% of Entry-Level Tasks in India Already Done by AI, Finds Cognizant and Pearson Study

• Employers to focus on interdisciplinary skills; expect new hires to supervise AI

Cognizant (NASDAQ: CTSH) and Pearson (FTSE: PSON.L) today released findings from their joint study, The AI Workforce Pulse: The Adaptability Imperative, highlighting how artificial intelligence (AI) is transforming India’s entry-level workforce at a faster pace than the global average, while simultaneously creating new career pathways and urgent skilling challenges.

Based on a survey of 750 HR leaders across the US, UK and India, the study finds that 37% of entry-level tasks in India are already performed by AI, compared to a 33% global average, with 18% of HR leaders reporting that AI now handles half or more of entry-level work, signalling accelerated disruption in one of the country’s largest workforce segments.

The findings point to four interconnected shifts shaping the AI workforce ahead:

Roles are Being Reinvented

• Nearly all (96%) HR leaders expect entry-level roles to evolve into positions where employees supervise or manage AI systems within the next five years.
• Nearly all HR professionals (94%) expect AI will generate new entry-level roles in the next five years that didn't exist before.
• More than 90% of respondents say middle managers are instrumental to redefining job roles as AI changes the day-to-day work of team members.
• Nearly all HR professionals (98%) are increasing focus on AI skills even for non-technical roles.

Employees in these roles are increasingly expected to manage AI outputs, validate decisions, interpret results and apply human judgment.

In India, 80% of organisations report that AI is enabling employees to focus on higher-value work, compared to 77% globally.

Human and Interdisciplinary Skills Are Increasingly Important

• Nearly all (97%) report soft skills matter more than ever, reflecting a need for adaptability, problem-solving, and human judgment.
• Two in three HR professionals (67%) report they value liberal arts degrees more than they used to in light of AI advancements.
• Nearly 7 in 10 (69%) HR professionals say broad, interdisciplinary backgrounds are more important for early-career talent than deep, specialized skillsets, with 65% of HR professionals in India reflecting this shift.

In addition, 91% of organisations in India place greater value on AI skills for non-technical roles, signalling a broader redefinition of what “job-ready” talent looks like.

Demand for AI Skills Is Rising, but Readiness Is Uneven

• 91% of HR professionals report increased employee demand for AI training over the past 12 months.
• 60% say their L&D programmes cannot keep pace with how quickly AI is transforming jobs, with India reporting a similar challenge at 63%.
• 54% of HR professionals say their organizations proactively arrange AI upskilling in anticipation of future roles evolving, while 46% say their organizations are not proactively arranging this training.

At the same time, India shows relative strength in how organisations are approaching learning:

• 63% of organisations in India have allotted time for AI training, higher than the U.S. (49%).

However, 61% of organisations in India report challenges finding the right talent, reflecting the pace at which skill requirements are evolving.

Middle Managers Are Critical to AI Adoption

• 95% of HR leaders say middle managers are critical to ensuring employees use AI effectively.
• 92% say middle managers play a crucial role in redefining job roles as AI reshapes day-to-day work.

Leadership Statements

Rajesh Varrier, President – Global Operations and Chairman & Managing Director, Cognizant India, said, India is at the forefront of how AI is transforming entry-level work, with organizations already embedding AI into day-to-day operations at scale. We are seeing a fundamental redesign of roles, where early-career talent is expected to work alongside AI and focus on higher-value outcomes.

AI is reshaping the talent landscape and exposing the limits of traditional talent and learning models,” said Kathy Diaz, Chief People Officer, Cognizant.

The new findings build on Cognizant’s earlier New Work, New World 2026 study, which found that AI is already impacting 93% of jobs, underscoring the urgency for employers to prepare for changing role expectations. Cognizant sees early-career talent as increasingly important in an AI-enabled workforce. After hiring 20,000 fresh graduates in 2025, the company expects to exceed that number in 2026, reflecting its continued investment in early-career talent and skill development as work evolves.

As work evolves, the most successful organizations will focus less on replacing tasks and more on building the capabilities that help humans and AI work together. That starts with early-career talent, said Ali Bebo, Chief Human Resources Officer, Pearson.

Through their partnership, Cognizant and Pearson are working together to help recent graduates, apprentices and mid-career professionals build skills in AI, cloud and digital technologies. Pearson supports Cognizant’s existing workforce development programs, including Synapse and its Immersive Learning Center in Chennai, to help create stronger development paths for the workforce.

Methodology

Cognizant and Pearson commissioned independent market research conducted by Wakefield Research in three markets: the US, UK and India, between March 23 and April 3, 2026, using an email invitation and an online survey among 750 HR professionals.

About Cognizant

Cognizant (NASDAQ: CTSH) is an AI builder and technology services provider, building full-stack AI solutions for clients. See how at www.cognizant.ai or @cognizant.

About Pearson

At Pearson, our purpose is simple: to help people realize the life they imagine through learning. Visit us at plc.pearson.com.

Forward-Looking Statements

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

MFIN Micrometer Q4 FY26 signals microfinance recovery with 3% portfolio uptick, improved credit quality, and diversification analysis.

Micro Finance Industry Network (MFIN) released the 57th edition of Micrometer for Q4 FY 25-26 based on the industry data as on March 31, 2026. Micrometer is the flagship publication of MFIN which covers progress of Indian microfinance industry on a quarterly frequency.

MFIN is an industry association of Banks, NBFC-MFIs, SFBs and NBFCs providing microfinance and India’s first RBI-recognized self-regulatory organization.

Report insights

The 57th edition of Micrometer brings two important additions to the publication. From this edition, there is a dedicated analysis of portfolio diversification, tracking the mix and performance of microfinance and non-microfinance portfolios, along with on- and off-balance sheet exposures across NBFC-MFI size categories. This reflects the evolving business models of MFIs following the regulatory flexibility on qualifying asset norms. The Other Regulated Entities section, introduced in the last edition, continues to evolve as a comprehensive analysis of the microfinance activity of banks, SFBs and NBFCs who are MFIN members.

As of March 31, 2026, microfinance operations are spread across 36 States/UTs and 721 districts. Data for Q4 FY 25-26 indicates early signs of recovery in the sector. After seven quarters of portfolio contraction, this quarter witnessed a QoQ uptick of over 3%. As on March 31, 2026, the industry portfolio stands at Rs 3,25,174 Cr. The portfolio expansion rode on quarterly disbursement of Rs 77,524 crore, which is also the highest in last seven quarters, though still less than the peak achieved in Q4 of FY 23-24. The portfolio inched up but despite seven quarters of contraction, the credit quality has returned to pre March 2024 levels. PAR 31-90 days was 0.8% as on March 31, 2026, and PAR 91-180 days at 1.2%. Both PAR metrices have been showing a gradual improvement over last eight quarters.

NBFC-MFIs remain the largest provider of microcredit, accounting for 44.2% of the total industry portfolio, followed by banks at 32.7%, while SFBs and NBFCs constitute the remaining share. While YoY, all entities have shown decline in outstanding portfolio, the decline is highest for banks at -30% and lowest for NBFC-MFIs at -2.7%. The funding squeeze for small MFIs was pronounced during the year; in break-up of outstanding liabilities from various sources for small MFIs, as All India Financial Institutions kept away from small players, Banks, NBFCs and ECBs were the primary sources, albeit lower than previous years.

On a regional and state level, Eastern region continues to be the top shareholder with 36.6% reflecting the focus on microfinance in underserved region. Top 3 states in terms of portfolio share are Bihar, UP and Tamil Nadu and top ten states account for ~80% share.

Dr. Alok Misra, CEO & Director of MFIN said “We can now say that despite the tough 2 years, Industry is turning the corner as evidenced by uptick in portfolio and continued improvement in Portfolio at Risk – PAR 31-180 declining to 2.0% as of March 2026 compared to 6.3% a year ago. A significant policy development which will further strengthen this recovery is the CGSMFI 2.0 scheme of Government of India. Recent extension of the scheme till August 2026 will allow sufficient time for utilisation. The sector is grateful to the Government, and the sector has done its part also by way of improved performance metrics riding on MFIN Guardrails, it is time for banks to come forward and actively support the cause of financial inclusion.

While these positive factors augur well for the sector in 2026-27, MFIN has also advised the players to keep in consideration the likely impact of lesser than average monsoon prediction and West Asia conflict as these may affect rural livelihoods”.

56% of Online Sellers are Already Using AI Tools to Grow Their Business: Snapdeal Bharat Seller Report 2026

• Report highlights rapid adoption of AI among sellers, rising strength of Bharat markets, and continued growth of value-driven shopping in India’s digital commerce economy

India’s online seller ecosystem is becoming increasingly technology-driven, manufacturing-led, and deeply aligned with the country’s value-conscious consumers, according to the latest “Snapdeal Bharat Seller Report 2026.”

The report, based on a survey of sellers across Bharat who sell on Snapdeal, reveals that artificial intelligence is no longer confined to large enterprises or digital-first brands. Instead, AI adoption is steadily moving into the mainstream among Indian online sellers, with 56% of surveyed sellers already using AI-powered tools in some form to improve their business operations.

The report captures emerging trends shaping India’s digital commerce economy, including AI adoption, online business dependence, marketplace diversification, consumer behaviour, and seller profitability pressures.

“India’s online seller ecosystem is evolving rapidly. Sellers today are far more digitally mature, operationally agile, and increasingly technology-enabled. What is particularly interesting is that AI adoption is now becoming visible even among MSMEs and traditional sellers. At the same time, the continued growth of Bharat markets on the back of rising internet penetration and growing comfort in online transactions among consumers continue to define the next phase of Indian e-commerce,” said Achint Setia, CEO, Snapdeal.

The report highlights that among sellers already using AI, the most common use case was product listings and content creation, cited by 43% of respondents. Sellers are increasingly leveraging AI tools to generate product descriptions, improve cataloguing efficiency, optimise listings, and enhance discoverability on marketplaces.

Online commerce is now central to seller businesses

The report also highlights how deeply online commerce is now embedded within seller business models across India.

Nearly 46% of respondents said more than three-fourths of their overall business sales now come from online channels, underlining the extent to which digital commerce has become a primary route to market for a large segment of sellers.

Importantly, India’s online seller ecosystem continues to remain strongly manufacturing-led. About 66% of surveyed sellers identified themselves as manufacturers selling directly online, showcasing how marketplaces are increasingly enabling small manufacturers, entrepreneurs, and MSMEs to access customers across the country without relying heavily on traditional distribution networks.

Bharat markets continue to emerge as the key growth engine

The report reinforces a trend that has steadily gathered momentum over the past few years: India’s smaller cities and towns are becoming the biggest growth drivers for digital commerce.

About 51% of sellers said customers from Tier-2, Tier-3, and smaller markets are growing faster for their business compared to metro and Tier-1 consumers.

The findings reflect the widening reach of e-commerce across Bharat, aided by affordable smartphones, improving logistics infrastructure, greater internet penetration, digital payment adoption, and rising comfort with online shopping among consumers in non-metro markets.

Value continues to dominate Indian online shopping behaviour

The report findings also underline the enduring strength of value commerce in India.

While, nearly 49% of sellers said consumers primarily prioritise the best prices and discounts while shopping online, product quality ranked second at 38%, indicating that quality remains a key consideration even for value-conscious consumers.

This trend is also reflected in seller price points. About 66% of respondents operate in categories where the average order value is below ₹500, highlighting the scale and importance of India’s value-conscious consumption economy.