Key Highlights The IT sector remains in focus after HCLTech's Q1 FY27 results, while Infosys ADR and Wipro ADR traded higher in the U.S. Sector Update • Infosys ADR gained 4%, while Wipro ADR rose 1.5%. HCLTech Q1 FY27 Performance • Results were largely in line with expectations, with the company maintaining its FY27 revenue guidance. • Constant Currency (CC) revenue declined 0.5% QoQ, outperforming the Street expectation of a 0.9% decline. • Revenue stood at ₹34,579 Crore, up 1.8% QoQ. • EBIT Margin improved to 16.86%, expanding 32 bps QoQ. • Net Profit increased to ₹4,624 Crore, up 3.0% QoQ. Business Highlights • Advanced AI revenue reached US$171 million, up 10.6% QoQ and 62.1% YoY (CC). • The company reported its highest-ever Q1 Total Contract Value (TCV) of US$2.4 billion, compared to US$1.93 billion in Q4. • HCLTech announced plans to invest up to ₹3,500 Crore in AI data centres, with scalable capacity of up to 50 MW. Market Impact Impact: Positive Strong deal bookings, accelerating AI revenue, stable margins, and reaffirmed FY27 guidance reinforce HCLTech's growth outlook and support positive sentiment across the IT sector. Learning Outcome For IT services companies, TCV, AI revenue growth, and management guidance are key indicators of future earnings visibility. Record deal wins and increasing AI-led business strengthen long-term growth prospects.

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