Anthropic Claude Fable 5: Likely impact on Infosys, HCL Tech, Persistent Systems
For Indian IT services firms, the Kotak Securities analyst said the key concern is that productivity improvements in software engineering are occurring much faster than in non-software domains.
- Jun 11, 2026,
- Updated Jun 11, 2026 12:55 PM IST
Kotak Securities' SVP for Fundamental Research, Sumit Pokharna said Anthropic’s Claude Fable 5 has raised the risk of revenue deflation for Indian IT services companies, those with significant exposure to application development & maintenance (ADM) services.
Pokharna said Fable 5 and Mythos 5 deliver substantially stronger software engineering capabilities, with Anthropic expecting AI-generated code quality is now approaching "human levels and could surpass it" within the next year.
For Indian IT services firms, the Kotak Securities analyst said the key concern is that productivity improvements in software engineering are occurring much faster than in non-software domains.
"This increases the risk of lower effort requirements, reduced billing volumes, and pricing pressure for traditional application development and maintenance contracts. As a result, companies with larger exposure to application services may face greater disruption than peers focused on infrastructure, cybersecurity, engineering services, or BPO," he said in a note.
To recall, Anthropic is preparing for an IPO and submitted a draft Form S-1 registration statement to SEC on June 1.
Infosys Ltd, Pokharna said, is considered relatively more exposed to application services, while HCL Technologies Ltd has comparatively lower exposure. Persistent Systems has one of the highest exposures to application development, he noted.
On Thursday, Infosys shares were trading 2.14 per cent lower at Rs 1,120.50. Persistent Systems Ltd was down 1.39 per cent at Rs 4,863. HCL Technologies Ltd stood at Rs 1109.60, down 1.98 per cent.
"The pace at which enterprises integrate AI models into software delivery workflows will be the key factor determining the magnitude of disruption for the IT services industry over the next three years," he said.
Tech Mahindra, Wipro and TCS fell up to 1 per cent in Thursday's trade.
Kotak Securities' SVP for Fundamental Research, Sumit Pokharna said Anthropic’s Claude Fable 5 has raised the risk of revenue deflation for Indian IT services companies, those with significant exposure to application development & maintenance (ADM) services.
Pokharna said Fable 5 and Mythos 5 deliver substantially stronger software engineering capabilities, with Anthropic expecting AI-generated code quality is now approaching "human levels and could surpass it" within the next year.
For Indian IT services firms, the Kotak Securities analyst said the key concern is that productivity improvements in software engineering are occurring much faster than in non-software domains.
"This increases the risk of lower effort requirements, reduced billing volumes, and pricing pressure for traditional application development and maintenance contracts. As a result, companies with larger exposure to application services may face greater disruption than peers focused on infrastructure, cybersecurity, engineering services, or BPO," he said in a note.
To recall, Anthropic is preparing for an IPO and submitted a draft Form S-1 registration statement to SEC on June 1.
Infosys Ltd, Pokharna said, is considered relatively more exposed to application services, while HCL Technologies Ltd has comparatively lower exposure. Persistent Systems has one of the highest exposures to application development, he noted.
On Thursday, Infosys shares were trading 2.14 per cent lower at Rs 1,120.50. Persistent Systems Ltd was down 1.39 per cent at Rs 4,863. HCL Technologies Ltd stood at Rs 1109.60, down 1.98 per cent.
"The pace at which enterprises integrate AI models into software delivery workflows will be the key factor determining the magnitude of disruption for the IT services industry over the next three years," he said.
Tech Mahindra, Wipro and TCS fell up to 1 per cent in Thursday's trade.