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Summary: TCS layoffs and the broader IT slowdown have rattled investor confidence. However, not all tech businesses are as exposed. Some still have their revenues tied to geographies other than the US and Europe. We spotlight three such names. Check them below.
TCS’ recent layoffs have amplified concerns over India’s IT sector, already reeling from weak client spending in the US and Europe. With the majority of their revenue tied to Western markets, large-cap IT exporters, especially, are bearing the brunt of the slowdown.
But not every business in the “tech” universe shares this heavy export dependence. A few companies—though not traditional IT service exporters—are riding the wave of growing digitalisation in their own unique ways. They also derive a significant part of their revenues from India and other markets, which makes them less dependent on global spending, unlike mainstream IT exporters.
Here’s a quick look at three such names.
3) Newgen Software
Newgen builds enterprise software platforms for process automation, content management and customer communication. Its revenues have grown at 17.7 per cent annually over the last five years, while profits have expanded faster at 32.1 per cent, resulting in a healthy average return on equity (ROE) of 22.2 per cent over this period.
The company’s revenue contribution is fairly diversified across geographies. It earned 31 per cent of its FY25 revenue from India, 32 per cent from the EMEA region (Europe, the Middle East and Africa), 21 per cent from the US and 16 per cent from Asia-Pacific.
| Company | Stock Rating | 5-year revenue growth (%pa) | 5-year profit growth (%pa) | 5-year average ROE (%) | P/E |
|---|---|---|---|---|---|
| Newgen Software | 3/5 | 17.66 | 32.14 | 22.18 | 38.3 |
| Data as of July 30, 2025 | |||||
2) Redington
Redington India is among the largest distributors of IT products and mobility solutions in the country. In simple words, it moves IT hardware and software, including PCs, smartphones, servers, cloud licences, etc., for over 450 global brands. This commoditised, low-margin model often earns it the ‘middleman’ tag. Yet its scale and reach are formidable.
The company operates in over 40 countries, including frontier markets in Africa and West Asia where few global competitors venture. For Q1 FY26, it earned 50 per cent of its revenue and 76 per cent of its profit from the SISA region (Singapore, India & South Asia).
| Company | Stock Rating | 5-year revenue growth (%pa) | 5-year profit growth (%pa) | 5-year average ROE (%) | P/E |
|---|---|---|---|---|---|
| Redington | 4/5 | 14.06 | 19.08 | 20.78 | 13 |
1) Affle 3i
Affle provides consumer intelligence-driven mobile advertising solutions. Its revenue model is largely CPCU (cost per converted user)—it earns when a user downloads an app or completes a purchase. Over the past five years, revenues and profits have grown at an impressive 46.7 per cent and 41.3 per cent respectively, with an average ROE of 30.2 per cent.
About 72 per cent of its revenue comes from India and other emerging markets, giving it a different client mix than the big IT exporters. But the company operates in a highly competitive space dominated by giants like Google and Meta, and its high P/E multiple of 69.6 reflects high investor expectations.
| Company | Stock Rating | 5-year revenue growth (%pa) | 5-year profit growth (%pa) | 5-year average ROE (%) | P/E |
|---|---|---|---|---|---|
| Affle 3i | 5/5 | 46.66 | 41.32 | 30.23 | 69.6 |
So, should you invest in these stocks?
These companies’ business mix makes them relatively less tied to the US and European economic cycles, but they might not be entirely insulated. Domestic and emerging-market demand can also be cyclical and valuations in some cases are steep.
If you’re looking for stocks backed by deep research that goes beyond short-term cycles, try exploring Value Research Stock Advisor. Our analyst-vetted recommendations are designed to help investors build a long-term, resilient portfolio. Join today and find our curated list of recommended stocks.
Also read: 5 stocks scoring big on quality right now!
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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