HCLTech Tightens FY Revenue Outlook as Deal Wins Offset Profit Hit
Indian IT services firm HCLTech narrowed its annual revenue growth forecast after posting a modest quarterly beat and stronger deal momentum. Revenue rose 13.3% year-on-year to ₹338.72 billion ($3.8 billion) for the quarter ended December 31, topping market estimates, while new deal bookings climbed to $3 billion. On the back of this visibility, the company revised its full-year revenue growth outlook to 4%–4.5%, compared with the earlier 3%–5% range.
Chief Executive C Vijayakumar said client spending is selectively returning in areas that enable artificial intelligence, even as broader discretionary tech spending remains cautious. He added that while global uncertainty continues to weigh on growth, demand for technology-led business transformation remains structurally strong, though unlikely to return to post-pandemic highs in the near term. Analysts said the updated guidance offers improved visibility into growth for the coming fiscal year.
However, HCLTech’s quarterly profit fell 11.2% to ₹40.76 billion, missing estimates due to a one-time charge linked to India’s new labour codes. The results come as India’s $283-billion IT sector faces subdued demand from the U.S. amid macroeconomic and geopolitical pressures, with peers such as Infosys, Wipro, and Tech Mahindra set to report earnings later this week.
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