US-based IT services major Cognizant may move closer to a potential India listing in the coming weeks, with the company awaiting draft regulatory guidelines before taking a final decision on its proposed domestic market debut. According to reports from NDTV Profit, Cognizant Chief Financial Officer Jatin Dalal stated during the company's third-quarter CY2026 earnings call that the company continues to make progress on its evaluation of a potential primary offering and secondary listing in India. Dalal emphasized that the company is awaiting the draft regulations to come through, which they expect in a few weeks' time, and should be able to make the final decision once the draft regulations are available. During the earnings call, Dalal said Cognizant was working closely with stakeholders and monitoring proposed changes to the regulatory framework that could facilitate its India listing. The company expects the draft regulations to be made public for consultation before it completes its evaluation and takes a final call, with management remaining pleased with the progress made towards framing the policy.
Cognizant reported 4.8% year-on-year revenue growth in constant currency terms during the September quarter (Q3), led by its financial services business and North America operations. As reported by NDTV Profit, the company's adjusted EBIT margin, excluding Project Leap, expanded 30 basis points to 16.3%, while it narrowed its FY26 revenue growth guidance to 4-4.4% in constant currency terms. The company highlighted that a sustained recovery in discretionary technology spending remains critical for broader revenue growth acceleration. Management expressed confidence in continued margin expansion, with the improved EBIT margin reflecting operational efficiency gains.
According to NDTV Profit reports, Cognizant highlighted the growing role of artificial intelligence in its operations, revealing that more than 50% of its software development is now AI-assisted. Management views AI as a potential growth driver, with outcome-based pricing, platform monetisation and integrated technology offerings gaining importance. The company is increasingly focusing on bundled services spanning infrastructure, software, cybersecurity and AI to address enterprise technology requirements.
As reported by NDTV Profit, Cognizant first publicly disclosed that it was exploring a potential primary offering and secondary listing in India in late 2025, as it evaluated opportunities to tap domestic capital markets and address the valuation gap with India-listed IT services peers. The company reiterated its plans during its first-quarter 2026 earnings call in April, confirming that the evaluation remained underway. However, in June, reports suggested that Cognizant's India listing plans had slowed amid market volatility and concerns over the impact of artificial intelligence on the IT services industry. A Cognizant spokesperson clarified on June 15 that the company had not shelved its plans and continued to evaluate a potential India listing, stating the process remained ongoing and that it would act in the best interests of its shareholders. The latest commentary from Dalal suggests the company is now awaiting regulatory clarity before deciding whether to proceed, with the proposed transaction remaining subject to regulatory developments and the company's final decision.
