HCL Technologies Ltd.Record AI Growth & Strategic Investments

HCL Technologies reported Q1 FY27 revenue of $3,650 million, declining 0.5% quarter-on-quarter but growing 2.6% year-on-year, while maintaining FY27 guidance of 1-4% organic revenue growth and 17.5-18.5% EBIT margins.

The company achieved its highest-ever Q1 bookings of $2.4 billion and secured a mega deal with a Fortune Global 50 firm for AI-led digital workplace transformation. Advanced AI revenue surged 62.1% year-on-year to $171 million, with AI Force deployed across 92 client accounts and over 1,000 AI Labs engagements delivered. Management announced aggressive strategic moves including a $150 million investment in Sarvam AI and up to ₹3,500 crore investment in AI datacenter infrastructure to capitalize on sovereign AI opportunities.

Operating margins expanded to 16.9%, up 39 basis points quarter-on-quarter despite seasonal headwinds. The mega deal will reach steady state only in April 2027, contributing minimally to FY27 but providing significant visibility for FY28 onwards. HCL Software ARR stood at $1.063 billion, growing 2% year-on-year in constant currency.