TLDR: HCLTech has become the first Indian IT services company to publicly report its standalone Artificial Intelligence (AI) revenue, announcing it exceeded $100 million (approximately ₹886 crore) in the second quarter of fiscal year 2026. This milestone highlights the company’s growing focus and success in AI-powered solutions, despite AI contributing under 3% to its total revenue. The company also reported strong overall Q2 performance with a net profit of ₹4,235 crore and total revenue of ₹31,942 crore.
HCLTech has marked a significant industry first by becoming the inaugural Indian IT services firm to disclose its standalone Artificial Intelligence (AI) revenue, which soared past the $100 million (around ₹886 crore) mark in the second quarter of fiscal year 2026, ending September 30. This disclosure underscores the company’s strategic pivot and investment in advanced AI capabilities.
While AI-related services currently constitute less than 3% of HCLTech’s total revenue, CEO C Vijayakumar expressed strong optimism for future growth. He stated, “A standout quarter on every front, marked by strong execution, growing demand for our AI-powered solutions, and Advanced AI revenue exceeding $100M this quarter. Our revenue grew 2.4% sequentially in constant currency, with a strong recovery of operating margin to 17.5%.” Vijayakumar anticipates this segment to expand significantly, driven by increasing demands for ‘factory requirements, inferencing, silicon design and validation requirements.’
In terms of overall financial performance for Q2 FY26, HCLTech reported a net profit of ₹4,235 crore, which remained flat year-on-year but saw a 10.2% sequential increase. The company’s revenue reached ₹31,942 crore, marking a 10.7% year-on-year and 5.2% quarter-on-quarter growth. In constant currency, revenue grew by 2.4% sequentially and 4.6% year-on-year. The EBIT margin recovered strongly to 17.5% (USD EBIT at $637M).
The company also achieved new deal wins with a total contract value (TCV) of $2,569 million in Q2, representing a 41.8% sequential increase and 15.8% year-on-year growth. For the first time, new bookings surpassed $2.5 billion without reliance on any mega deal. HCLTech’s commitment to AI is further evidenced by its involvement in setting up an NVIDIA-powered emerging tech AI lab for a large US telecom company, deploying high-performance AI clusters and state-of-the-art models like LAMA405B, Maverick, and Scout.
During the quarter, HCLTech expanded its workforce, adding 3,489 employees, bringing its total headcount to 226,640. The company also onboarded 5,196 freshers, and attrition rates dropped to 12.6%. Chief People Officer Ram Sundararajan announced that annual salary increments would be rolled out from October 2025, following the previous year’s process. Additionally, HCLTech will merge quarterly variable pay for junior-level employees with their fixed salary, converting variable pay into fixed pay for all employees.
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Looking ahead, HCLTech projects FY26 revenue growth of 3.0%–5.0% year-on-year in constant currency, with services revenue expected to rise 4.0%–5.0% in constant currency. The EBIT margin is guided at 17.0%–18.0% for the year.
