HCLTech Reports 3.9% Revenue Growth Driven by Advanced AI Demand for FY2026

HCLTech's Thriving Revenue Growth in FY2026

HCLTech, a leading global technology provider, has released its financial results for the fourth quarter and the full year ending March 31, 2026. Notably, the company has achieved a significant revenue growth of 3.9% at constant currency rates, reflecting its robust performance amid a period marked by uncertainty in demand.

Financial Highlights

For FY2026, HCLTech's revenue in USD reached an impressive $14.7 billion, which translates to a year-over-year growth of 6%. Services revenue increased by 4.8% year-over-year at constant currency, driven predominantly by the continuous rise in IT and business services, which grew by 3.7% year-over-year at constant currency. Moreover, engineering services and research & development services exhibited even more vigorous growth, soaring by 9.8% year-over-year at constant currency. The total contract value (TCV) of new contracts acquired in FY2026 hit $9.3 billion.

In tandem with these performance metrics, HCLTech reported an annual recurring revenue of $1.05 billion from HCLSoftware, representing a slight decline of 0.5% at constant currency.

CEO's Remarks

“This fiscal year has seen HCLTech achieve commendable revenue growth of 3.9%, despite the prevailing demand uncertainties,” stated C. Vijayakumar, CEO and Managing Director of HCLTech. “Our newly launched AI-based service offerings have attracted market interest, resulting in an annualized revenue of over $620 million from advanced AI services in the fourth quarter alone. Our top priority for FY2027 is to strategically position the company to capitalize on AI opportunities, aiming for value creation over the next several decades.”

Sector and Geographic Performance

The industry verticals showing the strongest growth included technology and services, which surged by 15% year-over-year (at constant currency). This was closely followed by financial services and telecommunications, media, publishing, and entertainment, with respective growth rates of 7.5% and 5.2% at constant currency.

Geographically, India was a substantial growth driver, achieving a remarkable 5.7% year-over-year growth at constant currency. Europe followed with a 4.5% increase while the United States registered a modest growth rate of 2.3%. In contrast, the rest of the world exhibited the fastest growth at 17.8% year-over-year at constant currency.

Future Outlook

Looking ahead, the company forecasts revenue growth for FY2027 to be between 1.0% and 4.0% year-over-year at constant currency, with services revenue anticipated to grow between 1.5% and 4.5% year-over-year at constant currency. The EBIT margin is projected to land between 17.5% and 18.5%.

HCLTech has proposed a dividend of ₹24 per share for the fourth quarter, bringing the total annual dividend to ₹60 per share for FY2026.

Resilient Annual Performance

HCLTech has reported resilient results for FY2026, with total revenues amounting to ₹130,144 crores (up 11.2% year-over-year) and an EBIT of ₹22,397 crores, representing 17.2% of revenues, a 4.6% increase from the previous year. Excluding restructuring costs, the EBIT margin stands at 17.9%, with net margins reported at 13.8%.

During the quarter, HCLTech successfully attracted 1,712 new employees, marking a total of 11,744 new hires for the year. The attrition rate over the past twelve months reduced to 12.5%, down from 13.0% recorded in the fourth quarter of the previous year.

Key Contracts in Advanced AI

Several major contracts related to advanced AI services were secured during the year. A prominent global technology firm selected HCLTech for an AI Factory program worth over $100 million, aimed at accelerating the development and operation of next-generation AI data centers. Additionally, a US-based global semiconductor company engaged HCLTech for AI Engineering services to assist with the physical design of its next-gen platforms.

In the aerospace sector, HCLTech was chosen to create an AI-based digital simulation environment for air freight operations, enhancing the client's operational capabilities.

Other significant contracts included partnerships with a global luxury fashion entity and a leading medical technology firm from the US, both aiming to enhance their operations through AI-driven transformations.

HCLTech's commitment to ethics and corporate responsibility is reflected in its recent recognition as one of the most admired companies in the world by Fortune magazine, an accolade it has maintained for several consecutive years.

About HCLTech

Employing over 227,000 individuals across 60 countries, HCLTech leverages cutting-edge capabilities focused on AI, digital innovation, engineering, cloud, and software. With a consolidated revenue of $14.7 billion for the period ending March 2026, HCLTech serves clients across several core industries including financial services, manufacturing, life sciences, media, and telecommunications.

For additional insights on HCLTech’s services, please visit hcltech.com.