India’s IT Sector Eyes Recovery,

HCLTECH

Already Ahead

has emerged as the sole outperformer in India’s IT sector over the past four years, delivering a 29% return since early 2022 while peers struggled with muted growth and automation-led uncertainty. Its proactive pivot to Generative AI, stable leadership under CEO C. Vijayakumar, and consistent revenue expansion have positioned HCLTech as the most resilient among the Big Five. With analysts now forecasting a sector-wide recovery in 2026, HCLTech’s early success highlights a shifting pecking order in India’s $283 billion IT services export industry. Shareholder Returns vs Peers - HCLTech shares rose 28.86% (Jan 2022–Jan 2026). - Peers declined: –14.2%, –11%, –6.7%, –25%. - Divergence underscores HCLTech’s relative strength amid sector-wide weakness. Revenue and Growth Profile - FY25 revenue: $13.84 billion, up 4.3% YoY. - FY24 growth: 5.4% YoY. - Guidance: 4–4.5% constant currency growth for FY26, with stable margins despite constrained global spending. AI-Led Differentiation - First Big Five firm to disclose AI revenues: $246 million from projects in agentic AI, AI factories, and physical AI. - Management acknowledged AI’s deflationary impact but focused on new monetisation opportunities. - Analysts call HCLTech’s business “all-weather,” resilient amid macro uncertainty. Leadership and Management Stability - CEO C. Vijayakumar at helm since 2016, providing continuity. - Contrast: Wipro has seen three CEOs in the same period, reflecting instability. - Stable leadership credited with consistent execution and investor confidence. Sector Outlook - Peers leaned on dividends, buybacks, bonuses to retain investor interest. - Analysts expect sector recovery in 2026, driven by AI adoption and currency tailwinds. - HCLTech already positioned as the only Big Five player to translate AI promise into share price gains.