One of the biggest crown jewels in Infosys’ portfolio is starting to look a little dull. As of Monday, January 12, 2026, the massive 3.2 billion Daimler deal is under serious pressure, putting nearly 150 million in annual revenue at risk.
The thing is, this wasn’t just a contract; it was a “mega-deal” that helped define CEO Salil Parekh’s era. Or nothing. Let’s be real, when your third-largest client—trailing only Apple and JPMorgan—starts dragging its feet on a renewal, the whole industry takes notice. Those too.
Also Read | Imran Khan and Bushra Bibi Sentenced to 17 Years in Jail
The “Daimler Drift” Log: Field Notes
It’s an ongoing situation where the “Twice as Fast” program is hitting a very public speed bump.
-
The Revenue Leak: The potential loss is roughly 0.7% of Infosys’ total FY25 revenue. The thing is, while the company has locked in cybersecurity and data center services until 2029, the “workplace solutions” arm (the part that handles laptops, software, and IT gear) is in limbo.
-
The “Unpaid” Tab: And here’s the kicker—Daimler (including Mercedes-Benz and Daimler Trucks) reportedly owes Infosys about 47 million in unpaid dues stretching back to 2021. The thing is, billing disputes and “execution differences” are making this renewal messy.
-
Vultures at the Door: One of India’s other IT giants—rumored to be TCS—has already swooped in and bid for the pieces of the contract that are up for grabs.
-
The Maturity Problem: Revenue from the dedicated subsidiary, Infosys Automotive and Mobility GmbH, actually dropped 8.5% last year. The thing is, the unit has been unprofitable for four years straight, signaling that the account has likely “peaked.”
Also Read | Imran Khan and Bushra Bibi Sentenced to 17 Years in Jail
Daimler Contract Health Check: Jan 2026
| Service Segment | Status | Revenue Impact |
| Cybersecurity | ✅ Renewed to 2029 | Stable |
| Data Center Services | ✅ Renewed to 2029 | Stable |
| Workplace Solutions | ⚠️ Delayed / RFP Pending | $150M at Risk |
| SAP & Network Svcs | 🔄 Under Negotiation | Uncertain |
And Here’s the Kicker…
We are seeing a broader trend where global firms are bringing tech work back “in-house.” The thing is, Daimler isn’t an isolated case—TCS lost a chunk of Transamerica, and HCL lost State Street. And then there’s the AI factor. Infosys is trying to pitch an “AI-led” renewal to save the deal, but Daimler seems more interested in trimming the fat.
It’s an ongoing situation where we won’t get a final answer until June 2026. Until then, expect Infosys’ automotive growth to remain flat, if not slightly underwater.
Also Read | Imran Khan and Bushra Bibi Sentenced to 17 Years in Jail
End…
