ITES Sector

The AI infrastructure boom has rewritten the investment narrative for India’s fibre and telecom infrastructure sector. As hyperscalers commit over $700 billion in annual AI capex, Indian fibre makers are moving from commoditised telecom suppliers to strategic AI infrastructure partners. This report examines the mechanics behind the sector’s re-rating — from fibre architecture shifts and supply-chain bottlenecks to billion-dollar order books, valuation framework changes, and the risks investors must still weigh.

Indian benchmark indices ended marginally lower on May 21, 2026, with Nifty closing near 23,654 and Sensex slipping 135 points amid concerns over RBI rate hikes, weak manufacturing PMI, rising crude oil prices, rupee weakness, and renewed FII selling. Defence and Realty stocks supported the market, while IT, FMCG, and Media remained under pressure.

Protean eGov Technologies shares surged 20% after the company posted strong Q4 FY26 earnings. PAT rose 48.9% YoY, revenue jumped 38.4%, while the company announced a ₹10 dividend and new CEO appointment.

Zaggle posted strong Q4FY26 earnings with profit rising 30.4% YoY and revenue jumping nearly 50%. The company also guided for 40% revenue growth in FY27, backed by AI-led expansion and overseas growth plans.

Following its acquisition of the Business Process Outsourcing (BPO) and Customer Experience Technology (CXTech) businesses of Altron People Solutions in October last year, global customer experience management firm iSON Xperiences has significantly strengthened its presence in the South African market to meet growing corporate demand for specialist onshoring services.

GIC Investor is a special purpose vehicle organized as a private limited company in Singapore.