HCLTech, India’s third largest IT services company, posted a strong 2.4% sequential growth in constant currency terms and 4.6% year-on-year, with its services business growing 2.5% sequentially on the back of robust growth in IT and business services and ER&D services. The company saw its operating margins coming in at 17.5%, an increase of 116 basis points sequentially. “This quarter saw strong, well-balanced bookings across service lines, geographies and verticals, resulting in $2.6 billion of new bookings. This is the first time we crossed the $2.5 billion mark without a contribution from any mega deal. We also signed two large deals this quarter, which we mentioned as delayed last quarter,” said C Vijayakumar, CEO & MD, HCLTech.

While Accenture is the only company that has been consistently reported its AI revenue, which now is nearly $2.7 billion, HCLTech this quarter said its advanced AI revenue was generating over $100 million or about 3% of its total revenue. In FY25, HCLTech recorded a revenue of $13,840 million, up 4.3% year-on-year, implying that advanced AI could be potentially generating close $420 million in revenues for the company in the current fiscal. The advanced AI revenue includes those from technologies such as agentic AI, physical AI, AI engineering, AI factory but excluding classical AI, data and analytics services, and the services delivered using GenAI and agentic AI. Reiterating the company’s strategy, the company top brass said it would continue to invest in building differentiated IP that accelerates and scales AI adoption making use of the advancements that large hyperscalers are bringing to the core intelligence layer. “We are expanding into new AI-led services including AI engineering, which has a lot of silicon for influencing chips, AI factory, AI advisory and these services leverage our strong foundation in engineering, infrastructure and the deep industry expertise,” Vijaykumar said while declaring the company's results late on Monday.

Detailing on the AI progress, HCLTech said its AI Force platform is likely to see a full roll-out by January 2026 which will be bringing agentic workflows, orchestration and responsible AI together into one unified platform across IT, software, and business operational services. “Our AI Force platform is now deployed across 47 accounts, up from 35% last quarter, and is the key solution enabler for most of our wins,” Vijayakumar said in the earnings call. The company also plans to take this to all its Top 100 clients

Under its advanced AI umbrella, the company’s AI factory—where it sees strong demand and, where it partners with the likes NVIDIA, Dell and HPE—is currently in talks with one of the global Top 10 tech companies in implementing global AI factories. On the AI advisory side, it has launched a new AI security and red teaming offering. Under the AI advisory business, the company co-plans the deployment of AI at scale tight from use case prioritisation to business case formulation to PoC and deployment blueprints with its clients. “In physical AI, we signed a deal in robotics with AI, which is a proposition that is catching great interest in tech and heavy industries. In data and AI and AI Foundry, we launched new capabilities and accelerators to enable business persona-driven agentic AI solutions for data modernisation and analytics,” Vijayakumar said.

HCLTech has also raised its annual guidance from its services business from the earlier 3-5% to 4-5% in constant currency terms, however, with softness in the software segment due to a decline in licensing revenue; it retained the overall revenue guidance unchanged at 3-5% in constant currency terms. The company also expects to be able to meet the full year EBIT margin guidance of 17-18%. “Most of our services deals are now embedded with advanced AI capabilities as they come up for renewal. Five of our Top 10 renewals came with increased ACV (advanced contract value), while the specific SOWs (statement of works) in the remaining ones had a decline due to AI-linked productivity. These are from large growing clients, and we do see opportunities to consolidate more work due to our proactive strategy in scaling AI with these clients,” the CEO added.

Analysts at Nomura see that with HCLTech continuing its focus on selling subscription and professional services vs perpetual licences, CQGR needed to achieve revised revenue guidance for FY26E is 0.3-1.5% in the second half for services and 0.5-3.1% at overall company level. “We expect USD revenue growth rate of ~5.9% in FY26-27F,” the note said.