HCL Technologies kept its growth streak alive in the third quarter of FY26, showing solid revenue numbers and a big boost in new business.
Revenue and Segment Performance
The company’s revenue rose 4.2% quarter‑over‑quarter and 4.8% year‑over‑year on a constant‑currency basis, reaching Rs 338 billion. The software side led the charge with a 28% quarterly jump and a 3.1% rise from a year ago. The services side grew more modestly—1.8% QoQ and 5% YoY—partly because of seasonal slow‑downs and lower staff utilization.
AI Services and New Deal Wins
AI‑related work helped lift the services segment. The Advanced AI portfolio generated about USD 146 million in revenue, up nearly 20% from the previous quarter. New contracts were strong, with total contract value (TCV) of around USD 3 billion, a 43.5% increase year‑over‑year and 17% over the last quarter. The biggest deal was a five‑year, USD 473 million agreement with a global apparel retailer. Applications and Engineering, R&D services together accounted for 62% of the new bookings.
Analyst Outlook
Given the performance, analysts have assigned a BUY rating to HCL Technologies. The target price is set at Rs 1,900, which works out to about 22 times the estimated FY28 earnings per share. This suggests the stock could be attractive even though broader discretionary spending is still soft.
Key Takeaways for Investors
- Revenue grew 4.2% QoQ to Rs 338 bn.
- AI services revenue rose 19.9% QoQ.
- New contracts totalled USD 3 bn, highlighted by a USD 473 mn apparel retailer deal.
- Analysts recommend a BUY with a Rs 1,900 target price.
Disclaimer
Remember, this is perspective, not a prediction. Do your own research or consult a certified financial professional before making any investment decisions.