HCLTech, one of India’s leading software services exporters, has adjusted its annual revenue growth forecast due to a significant increase in new deals and a slightly better than expected quarterly revenue performance.
In the quarter ending December 31, the company reported a 13.3% year-on-year revenue growth, reaching 338.72 billion rupees ($3.8 billion). This surpassed analysts’ average estimate of 330.46 billion rupees. The surge in new deal bookings, totaling $3 billion, prompted HCLTech to revise its annual revenue forecast to a range of 4% to 4.5%, up from the previous range of 3% to 5%.
During a post-earnings press conference, HCLTech’s Chief Executive C Vijayakumar highlighted a growing trend of non-essential spending by clients in AI-related areas. He noted that while global market uncertainty may impact growth rates, the demand for technology as a driver for business transformation remains robust.
Analysts at Jefferies expressed confidence in HCLTech’s growth prospects for the fiscal year 2027, citing the company’s revised forecast as a positive indicator. Similarly, Centrum Broking analyst Piyush Pandey praised the company’s performance in what is traditionally a slower quarter for IT firms, noting that there were no negative surprises in the report.
The broader Indian IT industry, valued at $283 billion, is facing challenges such as subdued demand in the U.S. market, where clients are delaying non-essential technology investments due to macroeconomic uncertainties and geopolitical tensions. Despite these headwinds, HCLTech’s performance stands out alongside its peers in the sector.
Earlier in the day, Tata Consultancy Services, India’s largest software company, also reported revenue that exceeded expectations. Looking ahead, investors will be watching for updates from other major players in the industry, including Infosys, Wipro, and Tech Mahindra, who are set to report their quarterly results this week.
In terms of financials, HCLTech’s quarterly profit dipped by 11.2% to 40.76 billion rupees, falling short of analysts’ projections. This decline was attributed to a one-time charge of 9.56 billion rupees related to the impact of India’s new labor laws.
Overall, HCLTech’s performance in the face of market challenges indicates resilience and adaptability. As the company navigates the evolving landscape of the IT industry, its focus on innovation and strategic partnerships positions it well for future growth and success.
(Reporting by Haripriya Suresh; Editing by Mrigank Dhaniwala)
