HCLTech Q4 results: Firm shows modest growth, AI remains key focus

India’s third largest IT services firm HCLTech on Tuesday reported slightly lower-than-expected revenue for Q4FY25, with revenue from operations for Q4FY25 rising 1.2% QoQ and 6.1%t YoY to ₹30,246 crore, impacted by global macroeconomic uncertainties. The company however showed confidence in Artificial Intelligence (AI). During the fourth quarter, HCLTech focused on obtaining exclusive contracts related to AI and generative AI, completing 12 new agreements, including those involving agentic AI and automation processes. The company also highlighted its AI offerings as a growth driver for the entire FY25.

Last week, three domestic IT majors — Tata Consultancy Services (TCS), Infosys, and Wipro — reported mixed Q4FY25 results, impacted by global economic slowdown, demand uncertainty, and potential US tariffs, where AI dominated tech earnings calls, signalling a shift from AI hype to strategic core investments. .

Read more: Q4FY25 results: Indian IT majors bet on AI amid global uncertainties

HCLTech's net profit for Q4 rose 8% year-on-year to ₹4,307 crore, and FY25 net profit increased 10.8% to ₹17,390 crore. Revenue growth for the full year FY25 was 6.5% to ₹117,055 crore, or 4.7% in constant currency, aligning with guidance.

The Noida-based company received $3 billion in new bookings this quarter and for the full year, HCL’s total contract value for deal wins came in at $9.26 billion.

C Vijayakumar, CEO & Managing Director, HCLTech said, “We saw very strong new bookings this quarter catalysed by our AI propositions and integrated GTM organisation that was set up at the start of the fiscal year. The strength of our execution should present us good medium-term opportunities emerging out of global uncertainties while we navigate the short-term cautiously."

Vijaykumar noted that the pipeline includes IT and business services, engineering services, and HCLSoftware, with AI and generative AI becoming crucial in nearly every transaction. "Both the Americas and Europe saw significant pipeline growth this quarter," he added. "We've made great strides in AI and GenAI, impacting client solutions and internal operations. Our four main AI products—AI Force, AI Foundry, AI Labs, and AI Engineering—have seen substantial adoption in FY25, with AI Labs completing 500 GenAI projects for 400 clients. "We are investing significantly in driving agentic solutions," he added.

HCL Technologies ended FY25 with 223,420 employees, a net increase of 4,061. This includes a reduction of 7,398 employees due to divestiture and the addition of 7,829 freshers.

"Strategic investments in AI and digital transformation remain central to its long-term growth plans. HCLTech focuses on delivering tangible business outcomes, often supported by contractual commitments that reinforce its confidence in execution. Its strength lies in combining engineering expertise with adaptable, cloud-based solutions, while embedding sustainability to stay future-ready. These efforts continue to enhance HCLTech’s position as a reliable global IT services provider," said Biswajit Maity, Sr Principal Analyst at Gartner.

In related news, midcap IT firm Tata Communications on Tuesday reported a 114.8% year-on-year increase in consolidated net profit for Q4FY25 to ₹761 crore, with revenue from operations up 6.1% to ₹5,990 crore. EBITDA increased 4.3% YoY to ₹1,122 crore. MD and CEO A.S. Lakshminarayanan said FY25 showed sustained growth despite macroeconomic challenges, driven by large deal wins and increased adoption of their Digital Fabric. Digital/AI revenues now comprise nearly 50% of the company’s portfolio.