#United States #New York #Digital Services #AI Engineering #HCLTech

HCLTech Reports Outstanding Growth in FY25

In a remarkable display of resilience and adaptability, HCLTech, a prominent global technology enterprise, announced robust financial outcomes for the fourth quarter and the full fiscal year ending March 31, 2025. Demonstrating impressive leadership in an ever-competitive landscape, the company reported a 4.3% increase in revenue, bringing the total to $13.84 billion.

Thanks to its strong pipeline of new deals, HCLTech secured an impressive $9.3 billion in new contracts over the fiscal year. For FY26, the company anticipates a revenue growth rate of 2%-5% year-over-year, underpinned by a disciplined execution strategy. CEO C Vijayakumar expressed pride in HCLTech's trajectory, stating, “HCLTech grew the fastest among our peers for the second straight year, highlighting our commitment to operational excellence.”

A Detailed Look at Financial Performance

In FY25, HCLTech not only met but exceeded its guidance, achieving a revenue growth of 4.7% in constant currency and an EBIT margin of 18.3%. In particular, the HCLSoftware division showed an upward trend, with growth recorded at 3.5% in constant currency. Despite fluctuating market conditions, the services sector registered a 0.7% quarter-over-quarter increase, marking a notable achievement for the company.

New bookings reached an impressive $3 billion this quarter, significantly propelled by HCLTech's strategic AI initiatives and its newly established integrated go-to-market organization. As global uncertainties persist, HCLTech remains optimistic about leveraging its strengths for medium-term growth opportunities while navigating short-term challenges cautiously.

Sector and Market Contributions

Analyzing HCLTech's performance by sector reveals a significant contribution from various industries. The Telecommunications, Media, Publishing, and Entertainment sectors led the growth charts, boasting an impressive 43.4% year-over-year growth, followed by Retail and CPG with 10.7%. Furthermore, the Technology and Services sectors yielded a solid 6.7% increase in revenue.

Geographically, the Americas emerged as the fastest-growing region, achieving a 5.3% increase year-over-year, while Europe and the Rest of the World followed closely with 3.5% and 4.7% growth, respectively.

Shareholder Returns and Dividends

HCLTech also announced a dividend of ₹18 per share for the fourth quarter, culminating in ₹60 per share for FY25. This reflects not only the company's growth trajectory but also its commitment to delivering value to its shareholders. CFO Shiv Walia highlighted that HCLTech's service revenue surpassed ₹105,398 crores, culminating in a revenue increase of 6.6% and a net income rise of 10.8%, reinforcing the company's position as a leader in the tech space.

Strategic Partnerships and Recognition

HCLTech has solidified its reputation as a preferred partner for Fortune 2000 companies, thanks to its innovative portfolio. Major contracts won this quarter include:

• - A US-based global hi-tech company engaged HCLTech for a comprehensive engineering services project in the AI-driven silicon and software-defined vehicle sectors.
• - Western Union has chosen HCLTech to facilitate its transition to an AI-led operational model and to support the establishment of a new technology center in Hyderabad.
• - The largest independent marine and rail terminal operator, Carrix, has selected HCLTech to innovate its global port operations through advanced AI Engineering and AIoT offerings.

Industry Recognition

In a testament to its excellence, HCLTech received acclaim in Q4 FY25 including being named the world's fastest-growing IT services brand in Brand Finance 2025 Global 500 and was recognized as a Global Top Employer for the third consecutive year by the Top Employers Institute. Additionally, it was again acknowledged as one of Ethisphere's 2025 World's Most Ethical Companies® and featured in the SP Global Sustainability Yearbook for the third year running.

Conclusion

As HCLTech continues to forge ahead with its strategic vision, the company not only signifies strength in its operational model but also emphasizes the potential for sustainable growth through technological innovation, making it a formidable player in the global technology landscape. For more information on how HCLTech can drive progress in your business, visit hcltech.com.