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HCLTech's Financial Performance for FY26

HCLTech, a premier global technology firm, showcased its resilience in financial performance with a reported revenue growth of 3.9% for the fiscal year ending March 31, 2026. This increase, reflected in constant currency, is underpinned by a robust demand for their advanced Artificial Intelligence (AI) services, which played a crucial role in their overall growth trajectory.

In terms of stakeholders' value, HCLTech has reported a total revenue of $14.7 billion, marking a 6% year-over-year increase when calculated in U.S. dollars. Particularly noteworthy is the services revenue, which increased by 4.8% year-on-year in constant currency, reflecting sustained momentum in their IT and Business Services divisions. These segments expanded at a rate of 3.7% each, while Engineering and R&D Services showed even stronger growth at 9.8%.

C Vijayakumar, CEO and Managing Director of HCLTech, noted the significance of these results amidst a challenging demand landscape. He shared, "Our new AI-led service offerings are gaining traction, demonstrated by annualized advanced AI revenues exceeding $620 million in Q4."

The total contract value for new deals achieved in FY26 reached an impressive $9.3 billion, further illustrating the strong market demand for HCLTech's innovative solutions. The company's Advanced AI revenue, which has become a focal point for growth, indicates a significant trend towards advanced technological solutions that cater to evolving market needs.

Segment Growth and Geographical Performance

Examining industry verticals, HCLTech experienced the highest growth rates in Technology and Services, which surged by 15% year-over-year. This was followed by Financial Services at 7.5% and Telecommunications, Media, Publishing, and Entertainment at 5.2%. Geographically, India demonstrated remarkable growth of 5.7% year-over-year, while Europe and the U.S. grew at rates of 4.5% and 2.3%, respectively. The Rest of the World saw the fastest growth overall at an impressive 17.8%.

Looking ahead, HCLTech predicts revenue growth for FY27 to be between 1.0% and 4.0% year-over-year in constant currency, while service revenue is expected to grow between 1.5% and 4.5%.

Financial Health and Shareholder Returns

Aside from impressive revenue figures, HCLTech's financial health is illustrated by an EBIT margin forecast of between 17.5% and 18.5%. In terms of shareholder returns, the company has declared a dividend of ₹24 per share for the fourth quarter, totaling ₹60 per share for the fiscal year.

According to CFO Shiv Walia, HCLTech's FY26 results show revenues climbing to ₹130,144 crores with an EBIT of ₹22,397 crores, representing 17.2% of the revenue — a growth of 4.6% year-over-year.

The firm has also focused on human capital, with an addition of 1,712 fresh graduates in the recent quarter, culminating in a total of 11,744 hires over the full year. The attrition rate has notably decreased to 12.5% from 13.0% in the previous year, indicating better employee retention strategies.

Major Advancements in Advanced AI

As part of their forward-thinking strategy, HCLTech secured several significant deals in the Advanced AI space:

• - A major technology firm chose HCLTech for an AI Factory program exceeding $100 million, aimed at building and operating advanced AI data centers.
• - A U.S.-based semiconductor company adopted HCLTech's AI Engineering services to enhance the design of its next-generation platforms.
• - HCLTech is also collaborating with a global aerospace giant to develop an AI-enabled digital simulation environment for managing aircraft cargo operations.

Other notable clients included a leading global luxury fashion brand that aims to accelerate its AI-led transformation across various operational facets including finance and supply chain.

In addition to business accolades, HCLTech's ethical performance has been recognized by Ethisphere, naming it one of the World's Most Ethical Companies® for the third consecutive year, and inclusion in Fortune's World's Most Admired Companies 2026 list further cements its reputable standing in the industry.

Conclusion

HCLTech is strategically positioned to capitalize on the surging demand for advanced AI technologies, ensuring sustained growth and innovation amidst evolving market trends. With strong financial performance and a solid foundation in advanced technological offerings, the company's outlook remains optimistic as it prepares for future challenges and opportunities in FY27.