HCL Tech’s AI-Powered Growth Signals Value for Shareholders

HCL Technologies’ September 2025 quarter marked a crucial turning point as it widened its lead over Tech Mahindra through stronger sales, higher margins, and a solid AI-driven growth outlook. The IT major reported consolidated revenue of Rs 31,942 crore, up 2.4% sequentially in constant currency and 10.7% year-on-year, while net profit came in at Rs 4,236 crore—a quarterly rise of 10.2%. Operating margins expanded to 20.5% aided by effective cost control and rising digital project efficiencies. The company’s standout achievement was the surge in deal wins—total contract value touched $2.57 billion, up 41.8% sequentially, underscoring healthy client traction across geographies. The public services and healthcare segments led growth while employee cost efficiency improved to 57.3% of revenue. Additionally, HCL Tech’s Advanced AI business crossed $100 million in quarterly revenues, making it the first large Indian IT firm to break this milestone. With digital and AI-led services now forming 42% of service revenue, the company is clearly transitioning into high-margin, future-ready domains. To reward shareholders, HCL Tech declared its 91st consecutive quarterly dividend at Rs 12 per share, maintaining consistent payout discipline. The firm also raised its FY26 services growth guidance to 4–5%, reflecting confidence in deal conversions and AI-led transformation opportunities. Trading at 24 times estimated FY26 earnings, the stock appears attractively valued given its steady profitability, expanding AI monetization, and strong cash reserves of Rs 29,000 crore. For investors, these numbers affirm HCL Tech’s resilience and technology leadership. With disciplined execution and an accelerating AI services base, the company continues to generate long-term value, signaling that its growth story remains rewarding for shareholders.