HCL Technologies

Updates with CEO quote in paragraph 6, recasts throughout

By Abhirami G and Sai Ishwarbharath B

Oct 8 (Reuters) - Tata Consultancy Services TCS.NS reported its weakest September-quarter sequential revenue growth in three years, signaling continued pressure on traditional IT services demand even as AI-related revenue jumped nearly 20% at India's largest software exporter.

AI is disrupting India's $315-billion software services sector by undermining its billable hour business model, but is also creating new demand as clients buy services built on the technology. Companies are ramping up investments to capture this emerging demand and cushion the hit to their core business.

"The AI revenue should be read in tandem with the accelerating decline in traditional revenues (which) points to AI-led pricing pressure and lower spending on services. We believe most large IT-services firms to face similar headwinds as legacy revenues contract," Ashis Dash, lead analyst at Systematix Group, said.

TCS's annualised AI revenue rose to $3.1 billion in the second quarter from $2.6 billion in the previous quarter. Despite the surge, TCS's sequential revenue growth, excluding currency fluctuations, stood at 0.5% — the lowest in three years for the July-September quarter.

"Demand environment has not materially changed since last quarter and discretionary programmes without near-term value remain under scrutiny," said CEO K Krithivasan during a post-earnings conference call with analysts.

Deal wins for the quarter edged up to $9.6 billion, from $9.5 billion in the preceding quarter but were lower than the $10 billion reported a year earlier.

TCS is part of the salt-to-software Tata Group, which is at the centre of a dispute over control of holding company Tata Sons and whether it should go public.

The company's consolidated revenue rose 11.2% to 731.88 billion rupees ($7.57 billion) year-on-year in the second quarter of the fiscal year. Analysts, on average, expected revenue to come in at 731.48 billion rupees, per data compiled by LSEG.

Quarterly net profit for TCS rose 15% to 138.84 billion rupees, compared with analysts' mean estimate of 137.97 billion rupees.

The Tata Group firm is the first major Indian IT company to report numbers in the current earnings cycle. Smaller rivals Infosys INFY.NS, HCLTech HCLT.NS, Wipro WIPR.NS and Tech Mahindra TEML.NS will report in the coming weeks.

Other Indian IT companies are also expected to report growth in AI services contribution as a percentage of their revenue, Anshul Jethi, analyst at LKP Securities, said.

US-listed shares of TCS's smaller rivals Infosys INFY.NS and Wipro WIPR.NS fell 1.6% and 2.4% respectively on Thursday evening.

(Reporting by Sai Ishwarbharath B; Editing by Nivedita Bhattacharjee and Jochelle Mendonca)

((mailto: [email protected];))

By Bharath Rajeswaran and Haripriya Suresh

Oct 1 (Reuters) - India's top IT companies are set to report another quarter of weak earnings and could trim their annual revenue growth forecasts, five brokerages said, as AI-driven pricing pressure and tepid spending by clients bite.

The rise of AI-based technology has battered the $315-billion information technology sector, especially vulnerable because of its reliance on billable hours, forcing companies to rejig business models and offer steep discounts. The sector has been among the market's worst performers over the past year.

"AI-led deflation has more legs to go and demand environment is not improving," Jefferies said in a note on Tuesday, citing additional pressure from higher oil prices and interest rates.

India's top IT services company, Tata Consultancy Services TCS.NS, kicks off earnings on October 8, with peers Infosys INFY.NS, HCLTech HCLT.NS and Wipro WIPR.NS ​reporting later this month.

IT companies typically post strong performance in the first two quarters of the fiscal year helped by higher billing days and project starts. However, first-quarter results were muted and expectations from the second are similarly subdued.

The industry, which employs nearly 6 million in the world's most populous country, is expected to report its weakest sequential performance in three years for the July-September quarter, according to Jefferies, with revenue growth projected at 0.7% to 3.5% quarter-on-quarter for the top six firms.

Year-on-year, analysts expect revenue to rise about 10% in rupee terms.

While acquisitions and deal ramp-ups could boost performance for some large companies, organic revenue growth is expected to be weak. The country's largest IT firms are projected to report lacklustre growth, after stripping out currency fluctuations.

The Nifty IT .NIFTYIT has dropped about 27% in 2026 so far, lagging the benchmark Nifty 50's .NSEI 13.4% drop.

With demand conditions largely unchanged since the last quarter, investors will focus on annual revenue growth forecasts.

Infosys is expected to trim the upper end of its 1.5% to 3% revenue growth forecast to 2.5%, analysts at Kotak said. Jefferies expects a sharper cut, to 0.5% to 2%.

Brokerages expect HCLTech HCLT.NS and Tech Mahindra TECHM.NS to lead among the larger companies, while Wipro WIPR.NS is likely to lag.

Margins may improve modestly as rupee depreciation offsets some pricing pressure, though foreign exchange hedging losses could weigh on profit at Tech Mahindra, Coforge COFO.NS and Hexaware HEXW.NS.

(Reporting by Bharath Rajeswaran and Haripriya Suresh in Bengaluru; Editing by Jochelle Mendonca)

(([email protected]; +91 9769003463;))

Sept 28 (Reuters) - HCL Technologies Ltd HCLT.NS:

• HCLTECH - TO ACQUIRE ROBOTIQ.AI

• HCLTECH - ENTERPRISE VALUE OF EUR 9 MILLION, ADJUSTED FOR NET DEBT AND WORKING CAPITAL

• HCLTECH - ACQUISITION EXPECTED TO CLOSE IN NOVEMBER 2026

Source text: ID:nNSE8q6m0m

Further company coverage: HCLT.NS

(([email protected];))

Sept 17 (Reuters) - HCL Technologies Ltd HCLT.NS:

• HCLTECH - ANNOUNCES LAUNCH OF HCLTECH PULSE BUSINESS UNIT

Source text: [ID:]

Further company coverage: HCLT.NS

(([email protected];))

** Indian IT stocks .NIFTYIT rise as much as 5.2% vs 0.23% fall in Nifty 50 .NSEI

** Sub-index heads for best day since July 2

** Mirrors gains in global software shares after AI executives - Anthropic CEO Dario Amodei, xAI chief Elon Musk, OpenAI CEO Sam Altman - back calls for slowdown of tech's development in face of risks

** HCLTech HCLT.NS climbs nearly 6% after eight straight sessions of declines, while Infosys INFY.NS and TCS TCS.NS rise about 5% each

** India's IT industry is seen as especially vulnerable to AI because of its reliance on billable hours

** YTD, Nifty IT down 21% vs .NSEI's nearly 10% decline

(Reporting by Urvi Dugar in Bengaluru)

(([email protected];))

Sept 14 (Reuters) - HCL Technologies Ltd HCLT.NS:

• HCLTECH AND CROWDSTRIKE EXPAND STRATEGIC PARTNERSHIP

• PARTNERSHIP TO ADVANCE AI SECURITY

Source text: [ID:]

Further company coverage: HCLT.NS

(([email protected];;))

Sept 8 (Reuters) - HCL Technologies Ltd HCLT.NS:

• HCLTECH - LAUNCHES ADVANCED SEMICONDUCTOR LAB WITH 1.85 BILLION RUPEES INVESTMENT

• HCLTECH - LAUNCHES SEMICONDUCTOR LAB IN BENGALURU

Source text: [ID:]

Further company coverage: HCLT.NS

(([email protected];;))

Sept 3 (Reuters) - HCL Technologies Ltd HCLT.NS:

• HCLTECH AND TRANSPORT FOR NSW TO EXPLORE AI-POWERED TRAFFIC INSIGHTS FOR INDIA

Further company coverage: HCLT.NS

(([email protected];;))

Aug 27 (Reuters) - HCL Technologies Ltd HCLT.NS:

• HCLTECH - WACKER ESTABLISHES GLOBAL CAPABILITY CENTER IN INDIA WITH HCLTECH

Source text: [ID:]

Further company coverage: HCLT.NS

(([email protected];))

By Sai Ishwarbharath B, Abhirami G and Haripriya Suresh

BENGALURU, August 21 (Reuters) - Artificial intelligence promised to disrupt India's IT industry and it is delivering.

Outsourcing giants like Tata Consultancy Services TCS.NS, Infosys INFY.NS, Wipro WIPR.NS, HCLTech HCLT.NS and Cognizant CTSH.O are rejigging business models, increasingly tying fees to performance outcomes instead of hours worked, as clients demand steep price cuts and more productivity.

Industry executives also say they are losing some work entirely as customers use AI to shift tasks in-house, while all the uncertainty that the new technology has brought is resulting in shorter contracts.

And where once the big IT companies won contracts because they could point to their huge employee base, that has become less and less of an advantage as AI automates more and more tasks — levelling the playing field for smaller rivals which have jumped at opportunities to snatch business.

"It's a desperate market for the service providers. The odds are very much in favour of clients," said Jimit Arora, CEO of research and advisory firm Everest Group.

Software companies globally have been battered by worries that AI will render key parts of their business obsolete, but India's IT industry — worth $315 billion in annual revenue — is the most obvious victim with its traditional reliance on billable hours.

The Nifty IT index .NIFTYIT has tumbled by a fifth this year, with its 10 constituents losing a combined $73 billion in market value.

CONTRACTS SHIFT TO MEASURABLE OUTCOMES

These days, pricing for contracts is more likely to be dictated by performance outcomes.

TCS Chief Executive K Krithivasan told Reuters that about 80% of the company's contracts within its finance, human resources and other business services segment are now based on outcome performance measures.

That number represents a doubling since AI went mainstream in late 2023, said a person with knowledge of the matter, who was not authorised to speak to media and declined to be identified. TCS did not respond to a request for comment.

Other examples in the industry include an AI and automation deal Cognizant CTSH.O struck with Daimler Truck DTGGe.DE in February. It stipulated AI-related cost savings would be split between the vendor and the client, according to people familiar with the terms.

"With AI, the fundamentals are shifting," Cognizant said in a statement to Reuters, though it declined to comment on specific contracts. "Clients now expect more value and measurable outcomes, and we are re-forging our model for that reality."

Daimler Truck did not respond to a request for comment.

A separate multiyear cloud management deal forged in June 2025 was structured so HCLTech will not be paid by German utility E.ON EONGn.DE for the first year, with payments from the second year tied to efficiency gains and specific business outcomes, according to two people familiar with the agreement.

E.ON declined to comment, while HCLTech did not respond to a request for comment.

CLIENTS WANT MORE BANG FOR THEIR BUCK

As AI drives productivity gains, clients have become increasingly vocal about getting more for less.

Persistent Systems PERS.NS CEO Sandeep Kalra told Reuters that the IT provider's clients were demanding the same work for 25% to 30% less while expecting faster delivery and higher productivity.

But on the plus side, AI is helping Persistent win larger deals than it would have previously.

"The demarcation of a scale player only by revenue is not necessarily a big thing today," he said.

IT executives and analysts alike say competition from mid-sized firms has become brutally fierce.

Many customers now want rapid development of pilot programmes and smaller firms are winning mandates by deploying senior leaders quickly and offering flexible pricing, says Phil Fersht, CEO and chief analyst at HFS Research.

"Many Tier 2 firms have been more agile and hungry in this phase," he said.

Both Persistent and Coforge COFO.NS, another mid-sized IT services provider, have seen revenue in dollar terms grow by double digits for at least eight quarters in a row. In April-June, revenue for Persistent surged 16%, while Coforge's sales jumped by a third.

In contrast, TCS, Infosys, Wipro and HCLTech had subdued growth of 1% to 3%.

IRRATIONAL EXUBERANCE?

As pressure from clients grows, some firms are making rash decisions, says Tech Mahindra TEML.NS CEO Mohit Joshi.

Some rivals are factoring in productivity gains of 70% to 80% over five to seven years and guaranteeing prices despite rising chip costs, Joshi told an analysts' call last month, adding that his company had chosen not to take such risks.

"Clearly, there is a ton of competition out there, and our competition at times is doing irrational things," he said.

Infosys last month also told analysts it had walked away from contracts that were no longer economically viable.

TCS's Krithivasan said that so far the company has been able to offset AI-related downward pressure on revenue with new work.

"But how fast and how much more we are able to go ahead of the (revenue) deflation will determine the growth going forward," he added.

TCS is also boosting its numbers of engineers who embed with clients to accelerate AI adoption and is hunting for AI acquisitions.

It is thus far the only Indian IT services provider to have announced mass layoffs in the AI era, implementing cuts of more than 12,000 last year. But companies have flagged that their traditional role as huge hirers of new recruits may be winding down.

The country's IT giants will no longer need large ranks of entry-level engineers, according to former Infosys CFO V. Balakrishnan.

"The pyramid model is gone. With coding agents, we no longer need basic coding," he said.

(Reporting by Sai Ishwarbharath B, Abhirami G and Haripriya Suresh in Bengaluru; Editing by Dhanya Skariachan and Edwina Gibbs)

(([email protected]))

Aug 13 (Reuters) - HCL Technologies Ltd HCLT.NS:

• HCLTECH - HCLTECH AND NETAPP EXPAND PARTNERSHIP

• HCLTECH - EXPANDED PARTNERSHIP FOR HYBRID CLOUD STORAGE-AS-A-SERVICE FOR ENTERPRISE AI ADOPTION

Further company coverage: HCLT.NS

(([email protected];))

HCLTech was named an OpenAI Advanced Partner within the OpenAI Partner Network, joining the global systems integrators selected to build, sell and deliver enterprise AI solutions with OpenAI. The partnership covered the deployment of OpenAI models, including GPT-5.6 and ChatGPT Work, while HCLTech's AI Force platform was integrated with OpenAI models. IT and business services accounted for about 74% of HCLTech's revenue, with a growing share attributed to AI-led digital transformation, and the company launched AI Force in FY24. HCLTech had more than 223,000 employees across 60 countries and reported consolidated revenue of $14.8bn for the 12 months ended June 2026.

Powered by Tijori

Aug 3 (Reuters) - HCL Technologies Ltd HCLT.NS:

• COMPLETES ACQUISITION OF HPE’S TELCO SOLUTIONS BUSINESS

Further company coverage: HCLT.NS

(([email protected];;))

Adds details on new tech hub, additional details on data center and background

July 24 (Reuters) - India's HCLTech HCLT.NS said on Friday it would invest 142.57 billion rupees ($1.48 billion) to set up its first AI data center in the eastern state of Odisha in partnership with homegrown startup Sarvam AI.

India’s IT services firms are entering the data center business to capitalise on demand from AI and cloud computing while diversifying beyond their traditional outsourcing operations.

HCLTech's investment will include financial support from the Odisha government, the company said.

The project, based in the state capital of Bhubaneswar, will utilise HCLTech's full-stack AI capabilities and Sarvam's foundation models to offer sector-specific AI applications to both government-owned and private companies.

Last month, HCLTech acquired a 10.5% stake in Sarvam AI for $150 million.

Additionally, India's third-largest IT firm said it is also opening a technology center in Bhubaneswar, which will house 5,000 employees and start operations by 2028.

HCLTech CEO C Vijayakumar in a post-earnings press conference last week said that the company wants to deliver full-stack AI services, with data centers being a part of the value chain.

"...it's the data centre, it's the GPUs, it's the models, it's the applications that we will deliver on top of it. The overall value creation is significantly of a very different magnitude when you really look at this as a full stack, and that's really what we want to play," he said.

In November, larger peer Tata Consultancy Services' TCS.NS announced plans to invest $2 billion to develop AI data centers in partnership with private equity firm TPG.

The AI boom has spurred a rush among companies to pour money into data centers, with India seen as a key market due to its large internet user base and lower power and operating costs.

($1 = 96.5425 Indian rupees)

(Reporting by Abhirami G and Haripriya Suresh in Bengaluru; Editing by Sonia Cheema)

(([email protected]))

Adds details of CEO transition, more analyst comments, background, shares and graphic

By Sai Ishwarbharath B and Haripriya Suresh

BENGALURU, July 23 (Reuters) - Infosys INFY.NS named company veteran Ashiss Kumar Dash as its next CEO on Thursday, tapping a three-decade insider to lead India's No. 2 IT firm through an AI-driven upheaval reshaping the technology services industry.

The succession plan was announced alongside a cut to the company's annual revenue growth forecast, sending its U.S.-listed shares down 5% in early trading.

Dash, who heads the company's energy and utilities business, will take over in April 2027 for a five-year term after Salil Parekh steps down at the end of his tenure in March, the company said.

The appointment comes as India's $315 billion IT sector wrestles with the impact of AI on technology spending and traditional outsourcing models.

"Ashiss Kumar Dash is a safe, execution-focused appointment at a time when Infosys needs stability as much as transformation," said Phil Fersht, CEO of tech research firm HFS Research.

"He understands the firm's culture, clients, and delivery engine, which should reassure customers and investors after a period of uncertainty."

Nandan Nilekani, the co-founder and non-executive chairman of Infosys, said Dash's long career at the firm had given him experience across key functions, including delivery, sales and account management, making him well-suited for the top role.

Dash will return from Los Angeles to India in the coming months and begin a structured handover process, with Parekh expected to mentor him from October as part of the transition.

NARROWS REVENUE GROWTH FORECAST

The Bengaluru-based firm narrowed its fiscal 2027 revenue growth forecast to 1.5%-3.0% from 1.5%-3.5%, citing cautious client spending amid AI-driven disruption. Analysts had expected growth of 2.5%-4.5%.

Parekh said the forecast's upper end reflected expectations of a stronger macroeconomic environment, which have yet to materialise.

StoxBox ‌analyst Sagar Shetty said the forecast downgrade likely reflects a more pressuring environment going forward.

Revenue in the quarter rose 14% to 482.11 billion rupees ($4.99 billion), missing analysts' average estimate of 483.67 billion rupees, according to data compiled by LSEG. Net profit rose 12.2% to 77.69 billion rupees, while analysts expected 78.32 billion rupees.

Rivals Tata Consultancy Services TCS.NS and HCLTech HCLT.NS beat quarterly estimates earlier, aided by strong financial services demand and a weaker currency.

AI services accounted for 8.2% of Infosys' revenue, compared with 5.5% in the December quarter.

Large deal bookings were $3.6 billion in the quarter, up from $3.2 billion in the previous quarter but down from $3.8 billion a year earlier.

($1 = 96.5725 Indian rupees)

(Reporting by Sai Ishwarbharath B and Haripriya Suresh; Additional reporting by Mridula Kumar, Surbhi Misra and Kashish Tandon; Editing by Nivedita Bhattacharjee, Dhanya Skariachan and Devika Syamnath)

(([email protected];))

BENGALURU, July 21 (Reuters) - India's Odisha state on Tuesday approved 23 industrial projects worth 45.74 billion rupees ($475.29 million) in investment by companies across sectors including information technology, textiles, pharmaceuticals and chemicals.

The projects will be established across 11 districts by companies, including HCLTech HCLT.NS and Tata Steel TISC.NS, it added.

Here are some key details:

• HCLTech will invest 7.30 billion rupees for a global development centre offering IT services, which is expected to generate 6,000 jobs.

• Tata Steel will invest 1.65 billion rupees in a railway siding for a dedicated rail freight facility, with the project expected to create 250 jobs.

• ACME Cleantech Solutions will establish a 7.78-billion-rupee alkaline electrolyser manufacturing unit with a production capacity of up to 3 gigawatts (GW) per annum.

• The 23 projects are expected to create 22,873 jobs, the state government added.

($1 = 96.2350 Indian rupees)

(Reporting by Nishit Navin; Editing by Leroy Leo)

(([email protected];))

BENGALURU, July 16 (Reuters) - Indian software services provider Tech Mahindra TEML.NS reported larger-than-expected first-quarter revenue on Thursday, aided by its communications and manufacturing segments and a weak rupee.

Revenue at India's fifth-largest IT firm rose 17.7% year-on-year to 157.12 billion rupees ($1.63 billion) in the three months ended June 30. Analysts, on average, expected revenue of 154.76 billion rupees, according to data compiled by LSEG.

($1 = 96.3450 Indian rupees)

(Reporting by Sai Ishwarbharath B and Surbhi Misra; Editing by Harikrishnan Nair)

(([email protected]; || [email protected]))

July 14 (Reuters) - India's HCL Technologies HCLT.NS fell as much as 3.2% on Tuesday after brokerages said the IT services firm's decision to maintain its annual revenue growth forecast signalled continued uncertainty in client spending and a slower recovery trajectory.

The stock trimmed some losses to trade 1.7% lower and was the top drag on the IT index .NIFTYIT.

(Reporting by Kashish Tandon in Bengaluru; Editing by Janane Venkatraman)

(([email protected]; 8800437922;))

HCLTech announced on July 13 that its board has approved an investment of up to ₹3,500 crore to establish AI data centers in India, marking the company's entry into the full-stack AI market. The investment will be routed through new wholly-owned subsidiaries and is intended to scale up to 50MW of capacity. The company said the move complements its existing AI data center design, DevOps, and cloud operations capabilities, creating an integrated end-to-end play. CEO C Vijayakumar stated that the convergence of AI demand, supply constraints, and digital sovereignty presents a compelling opportunity for HCLTech to emerge as a full-stack AI technology solutions provider. The first subsidiary for this purpose is yet to be incorporated, with an initial subscription of ₹15 lakh. HCLTech's consolidated revenues for the twelve months ending June 2026 stood at $14.8 billion.

Powered by Tijori

July 13 (Reuters) - HCL Technologies Ltd HCLT.NS:

• HCLTECH - BOARD APPROVES INVESTMENT UP TO 35 BILLION RUPEES FOR DATA CENTERS IN INDIA

• HCLTECH - HCLTECH LAUNCHES FULL-STACK AI OFFERING POWERED BY AI DATA CENTER INVESTMENT

• HCLTECH - INVESTMENT TO BE MADE THROUGH NEW SUBSIDIARIES

• HCLTECH - NEW COMPANY TO BE WHOLLY OWNED SUBSIDIARY OF HCL TECHNOLOGIES

Source text: ID:nBSE7KnVMG

Further company coverage: HCLT.NS

(([email protected];;))

Updates with closing levels

By Mridula Kumar

July 10 (Reuters) - India's Tata Consultancy Services TCS.NS rose as much as 4.1% on Friday after better-than-expected quarterly revenue on strong banking demand and rising AI revenue, though analysts said the broader sector recovery was likely to remain gradual.

Shares of the country's top software services exporter trimmed some gains to close about 1% higher at 2,069 rupees, helping lift the benchmark Nifty 50 .NSEI 1.02% higher.

The IT index .NIFTYIT gained about 1.96% during the session.

Analysts said investors were looking at positive growth expectations for TCS in the coming quarters, led by AI revenue, with multiple brokerages also citing strong growth in banking, financial services and insurance, high-tech and regional markets.

"The company expects AI adoption growth and transformation to pick up, and they expect better numbers," said Piyush Pandey, lead IT Analyst at Centrum Broking.

Annualized AI revenue crossed $2.6 billion, driven by faster deployments across industries, rising from $2.3 billion in the previous quarter, TCS said.

Quarterly sales rose 14% to 722.75 billion rupees ($7.58 billion), while CEO K Krithivasan signalled a second-quarter recovery in manufacturing and life sciences demand.

SUBDUED QUARTER, GRADUAL RECOVERY

While the results offered investors early signs that growth may be stabilizing in India's $315 billion IT sector, analysts said a broader recovery was likely to remain gradual as demand concerns remained after expectations of another subdued quarter.

Flattish international revenue and a 3% year-on-year fall in headcount suggested continued sluggishness, according to Citi, while Nomura analysts said macro uncertainty still weighed on the near-term outlook.

Brokerages had flagged a low growth rate for the company in fiscal 2027 due to AI-led deflation.

The earliest the net AI impact will turn accretive for the sector and company is mid- to end-fiscal 2028, HSBC said post the results, adding that TCS' quarterly earnings offered limited grounds for pessimistic investors to reassess their stance.

Rivals Infosys INFY.NS, HCLTech HCLT.NS and Wipro WIPR.NS are expected to report their quarterly earnings later in the month.

($1 = 95.3150 Indian rupees)

(Reporting by Mridula Kumar in Bengaluru; Writing by Abinaya V; Editing by Mrigank Dhaniwala and Janane Venkatraman)

(([email protected]))

July 7 (Reuters) - HCL Technologies Ltd HCLT.NS:

• HCLTECH - HCLSOFTWARE COMPLETES ACQUISITION OF JASPERSOFT AND INTEGRATES WITH ACTIAN PORTFOLIO

Source text: [ID:]

Further company coverage: HCLT.NS

(([email protected];))

By Haripriya Suresh and Bharath Rajeswaran

BENGALURU, July 6 (Reuters) - India's top information technology companies are expected to report another subdued quarter, as AI-driven pricing pressure, weak client spending, and global geopolitical turmoil continue to weigh on growth, nine brokerages said.

The April-to-June quarter is usually a strong one for India's $315 billion IT sector, helped by higher billing days and new project starts, but analysts expect a slow start to the fiscal year that would push back hopes of a recovery.

India's largest IT services company, Tata Consultancy Services TCS.NS, kicks off earnings on Thursday with peers Infosys INFY.NS, HCLTech HCLT.NS and Wipro WIPR.NS reporting later this month.

While India's top six IT firms are expected to report around 14% year-on-year revenue growth in rupee terms with net profit rising 12%-13%, this would largely be due to the impact of sharp rupee depreciation. Stripping out exchange rate effects, the companies are expected to post a mere 2.8% revenue growth in constant-currency terms.

Citi expects a fourth straight year of subdued growth for Indian IT firms, while JPMorgan sees revenue growth staying below 3%-4% for the "foreseeable future".

The IT sector is racing to adapt to changing customer needs as companies across the globe step up the use of AI tools and agents to cut costs and quicken software development cycles.

Software firms have slowed hiring, with TCS Chairman N Chandrasekaran saying the "day is not far" when the company would have an equal number of AI agents and employees.

Indian IT firms are in a "perfect storm," Nomura said in its earnings preview, with Middle East conflict-led uncertainty compounding AI-driven pricing pressure.

Fears that AI would disrupt the IT sector's traditional, labour-intensive business model dragged the Nifty IT index .NIFTYIT down 9.5% in the June quarter even as India's benchmark Nifty 50 .NSEI gained 6.9%.

The IT index has slumped about 28% so far in 2026, making it the worst-performing major sector in India.

The impact of AI-led disruption and weakness in client spending will be broad-based, according to PL Capital, with effects visible in the consumer, hi-tech, and telecom verticals.

"Slower decision-making and elongated sales cycle are leading to delays in revenue conversion and execution," the brokerage said in a note.

Annual revenue forecasts will be a key focus for investors. Brokerages say Infosys and HCLTech could narrow or trim the upper end of their forecasts.

Potentially higher interest rates in the U.S., which makes up about 60% of Indian IT firms' revenue, also loom.

(Reporting by Haripriya Suresh and Bharath Rajeswaran in Bengaluru; Editing by Mrigank Dhaniwala)

(([email protected]))

** Shares of India's HCLTech HCLT.NS rise 5.2% to 1,135 rupees

** IT services co on Friday announced the signing of strategic partnership with a European Fortune 50 firm

** Deal valued at $1.14 billion, to establish AI-driven operating model for workplace transformation

** HCLT on avg rated "hold" by 40 analysts; median PT is 1362.5 rupees - LSEG data

** Stock down 31% YTD

(Reporting by Abhirami G in Bengaluru)

(([email protected]))

June 25 (Reuters) - HCL Technologies Ltd HCLT.NS:

• HCLTECH - HCLTECH AND SERVICENOW JOIN FORCES TO SCALE ENTERPRISE AI WITH GOOGLE CLOUD

Source text: ID:nBSE37ymtf

Further company coverage: HCLT.NS

(([email protected];))

June 24 (Reuters) - HCL Technologies Ltd HCLT.NS:

• HCLTECH - HCLTECH SELECTED AS STRATEGIC PARTNER BY NESTE

• HCLTECH - HCLTECH PARTNERS WITH NESTE FOR LONG-TERM AI-LED EFFICIENCY TRANSFORMATION

Source text: ID:nBSE749BXM

Further company coverage: HCLT.NS

(([email protected];))

BENGALURU, June 19 (Reuters) - India's Nifty IT index .NIFTYIT slumped 5.8% on Friday after industry bellwether Accenture ACN.N forecast quarterly ​sales below Wall Street view and lowered the upper end of its annual revenue outlook due to weakness in its Middle East business.

Shares of Indian IT companies, including Tata Consultancy Services TCS.NS, Infosys INFY.NS, and HCL Technologies HCLT.NS fell between 5% and 7%.

(Reporting by Haripriya Suresh in Bengaluru; Editing by Sherry Jacob-Phillips)

(([email protected]))

June 18 (Reuters) - HCL Technologies Ltd HCLT.NS:

• HCLTECH - HCLTECH LAUNCHES AI INNOVATION ZONE IN CHENNAI WITH INTEL-POWERED ENTERPRISE SOLUTIONS

Source text: [ID:]

Further company coverage: HCLT.NS

(([email protected];))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Ujjaini Dutta

BENGALURU, June 17 (Reuters Breakingviews) - HCLTech’s HCLT.NS decision to lead a fundraising round for India’s sovereign AI posterchild is both timely and shrewd. The $32 billion IT services firm's 10% stake in Sarvam, valuing the startup at $1.5 billion, is small enough to limit any risk yet showy enough to deflect mounting criticism that the world's back office is underinvesting as AI eats away at its revenue.

To be sure, Sarvam, founded by Vivek Raghavan and Pratyush Kumar, is not a neat fit for its newest big backer. The barely three-year-old startup's large language model is optimised for Indic languages but HCL's client base is largely outside the country, mostly in the United States and Europe: India accounted for just 3% of HCLTech's annual sales in the year to the end of March 2026.

And while the IT industry's decades-long success is often attributed to New Delhi staying out of the way, Sarvam is at the heart of the government's IndiaAI Mission. Through that initiative, the startup has secured financial and compute support, including subsidised access to Nvidia's NVDA.O graphics processing chips.

Of course, taking a stake in India's sovereign AI champion could unlock more domestic deals for the C Vijayakumar-led company with Indian enterprises. And it might also get early access to Sarvam's latest tech, as Microsoft MSFT.O did through its investment in OpenAI, though the company run by Satya Nadella also bagged a huge customer for its Azure cloud business.

The political returns for HCL at least appear more certain. Washington's order for Anthropic to suspend access for non-U.S. residents to its Fable 5 and Mythos 5 models will only deepen the desire of governments around the world to find their own sovereign AI solutions across compute infrastructure, AI models and user-facing AI software. That will require oodles of capital.

HCL's rivals such as Wipro WIPR.NS and Infosys INFY.NS are attempting to counter AI deflation on their revenues in other ways. Tata Consultancy Services TCS.NS, for example, is investing in a data centre. Backing Sarvam is, for now, less expensive and probably more politically savvy. They may be tempted to pile in too.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

HCLTech will acquire a 10.5% stake in Sarvam AI for ‌14.27 billion rupees ($150.7 million) in cash, the Indian IT services company said in a stock exchange filing on June 15. HCL co-led the fundraising round with Bessemer Venture Partners. It also included existing investors Khosla Ventures and Peak XV Partners.

The investment will allow the Indian IT services company to develop specific language models and AI solutions for its global client base and accelerate the development of sovereign AI solutions for governments and regulated industries, HCLTech said.

Sarvam was valued at $1.5 billion in the round, which raised $234 million in its first close out of a targeted $300 million. The AI startup is backed by India's government AI Mission.

(Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))

June 15 (Reuters) - HCL Technologies Ltd HCLT.NS:

• HCLTECH - HCLTECH TO BUY 10.46% STAKE IN SARVAM AI

Source text: ID:nBSE1bGLkL

Further company coverage: HCLT.NS

(([email protected];;))