HCLTech CEO and MD C Vijayakumar, on April 22, said that while a cut down in discretionary spends by customers is expected in the light of Trump’s tariffs getting implemented soon, AI-led efficiency will become the biggest theme for the IT services major to capture large deals in FY26.
The Noida-headquartered IT firm reported strong net new deal wins worth $2.99 billion in the fourth quarter ended March 31, 2025, its highest quarterly deal wins since the September 2023 quarter, when it had $4 billion in total contract value (TCV) on the back of a $2.1 billion deal with Verizon Business.
For the full year FY25, its deal pipeline stood at $9.26 billion. Vijayakumar shared that the deal wins for the fiscal year were driven by the bookings in the engineering and R&D services business that saw a record growth of 75 percent year-on-year in FY25.
Speaking on the immediate impact of Trump’s tariffs at HCLTech's Q4 earnings conference, Vijayakumar said, "We haven't seen any specific tariff impact so far. But we expect tariff impact to play out much faster in the consumer and manufacturing segments. But once the impact plays out, all verticals will be affected."
"However, the biggest impact will be on the cost for clients and their intentions of using generative AI to drive efficiency of every aspect of business, will become the centre stage of all the conversations. While there is uncertainty and definitely a deterioration of discretionary spend, we think AI-led efficiency will become the big theme, where we expect large opportunities. We have a strong pipeline. Though there is conservatism in the way we look at the lower end of our guidance, overall, this is a great chance for us to create significant opportunities in the market," he added.
On the basis of these ongoing uncertainties, HCLTech has slashed its revenue growth guidance for FY26 to 2-5 percent, reducing the lower end by 250 basis points as compared to FY25.
HCLTech reported an 8 percent on-year rise in net profit at Rs 4,307 crore for the quarter ended March 31, 2025, up from Rs 3,986 Crore in the same quarter previous fiscal. This is a seasonally weak quarter for the company due to weakness in the product business and margin pressures.
HCLTech's revenue from operations rose 6 percent to Rs 30,246 crore in Q4FY25 as against Rs 28,499 crore in Q4FY24.
For the full year FY25, revenue growth was up by 6.5 percent to Rs 117,055 crores, from Rs 109,913 crore in FY24. This was a 4.7 percent growth in constant currency (CC) terms, in line with the company’s growth guidance of 4.5-5 percent for the full year.
Net profit for FY25 grew 10.8 percent to Rs 17,390 crores, against Rs 15,702 crore in FY24
Ebit margin for FY25 came in at 18.3 percent, in line with the guidance of 18-19%. In Q4, operating margin stood at 17.9 percent.
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