India’s HCLTech reported a solid third-quarter performance, driven by strong demand for artificial intelligence-led services and large digital transformation deals, as enterprises accelerate automation and modernisation despite a cautious global IT spending environment.
The country’s third-largest IT services exporter said revenue for the quarter ended December 31 rose 13.3% year-on-year to Rs. 33,872 crore, while operating margin improved to 18.6%, helped by better utilisation and productivity gains from AI-led delivery, even after accounting for restructuring costs
A key highlight was the sharp rise in Advanced AI revenue, which grew 19.9% sequentially in constant currency to $146 million, significantly outpacing overall services growth. HCLTech said AI continues to be a major driver across its portfolio, with clients increasingly moving from pilot projects to scaled deployments
Digital services revenue grew 17.7% year-on-year and now accounts for 43.2% of total services revenue, underscoring the shift among global enterprises toward cloud, data, software and AI-led transformation initiatives.
New deal wins remained strong, with total contract value at $3.0 billion, up 43.5% from a year earlier. Several large contracts announced during the quarter combined core IT modernisation with agentic AI, automation and data platform upgrades, reflecting client focus on cost optimisation, resilience and faster time-to-market rather than discretionary digital spending.
Chief Executive C Vijayakumar said the company was “well positioned to address evolving AI demand across industries,” while Chairperson Roshni Nadar Malhotra noted that AI is increasingly embedded across service lines rather than treated as a standalone offering
HCLTech’s software business also showed momentum, with revenue rising 28.1% quarter-on-quarter, driven by its data intelligence portfolio. Annual recurring revenue stood at $1.07 billion, reflecting the company’s push toward IP-led and subscription-based offerings alongside traditional services
For the full year, HCLTech maintained its guidance, forecasting 4.0%–4.5% revenue growth in constant currency and EBIT margins of 17%–18%, signalling confidence that AI-led transformation spending will continue to offset macroeconomic uncertainty in key markets such as the United States and Europe
