Business Highlights
In FY26, HCLTech grew at 11.2% year-over-year (YoY) while navigating an evolving landscape of AI-driven technological transformation and geopolitical unce_ainties. HCLTech repo_ed a consolidated revenue of _130,144 crores in FY26, suppo_ed by a growing AI po_folio, AI service transformation and acceleration in growth markets. A key highlight of the year was the rapid scale-up of our Advanced AI business, which reached $620 million in annualized revenue. This years profitability was impacted by 65 bps due to non-recurring restructuring costs. Adjusted for this non-recurring charge, Earnings Before Interest and Taxes (EBIT) margin* for the fiscal year was at 17.9%. Net income was _16,642 crores while Operating Cash Flow (OCF) and Free Cash Flow (FCF) were _19,975 crores and _18,553 crores, respectively. The Return on Invested Capital (ROIC)* was 40.3%, up 235 bps YoY, reflecting disciplined capital allocation and our focus on long-term shareholder value. Our pezormance was acknowledged through several prestigious recognitions. HCLTech received two recognitions from TIME magazine — as one of the Worlds Best Companies and the Worlds Most Sustainable Companies — in 2025. We were also included in Fo_unes Worlds Most Admired Companies list for 2026.
*EBIT Margin and ROIC of FY26 exclude one-time New Labour Codes impact of _956 crores
Scaling Innovation: Services, Software and the AI Frontier
HCLTechs services po_folio continues to grow in this dynamic environment, suppo_ed by sustained demand for AI led solutions, engineering services, cloud modernization and digital transformation. HCLTechs AI offerings, spanning Service Transformation, Advanced AI and Classical AI, have become key differentiators. They position the companys offerings as the intelligence layer across enterprise technology stacks and the company as a preferred pa_ner for AI transformation. We are working to accelerate our shift toward an IP-led, platform-centric model, building non-linear revenue streams through repeatable, industry-focused solutions and services-as-software offerings. This positions us strongly to capture the next phase of value creation in the AI era. We pursued targeted acquisitions to add strategic value to our po_folio and enhance our market position. This included expanding our telecom engineering capabilities through an agreement to acquire HPEs Telco Solutions Business. We also augmented our financial services po_folio with Finergics specialized banking expe_ise. The data and analytics offerings of HCLSoftware were strengthened through the strategic acquisition of Wobby, an AI Data Analyst Agent staffup. HCLSoftware also recently signed an agreement to acquire Jaspersoft, a leader in embedded analytics. Our technology services and software po_folio earned over 390 analyst leadership recognitions, a testament to HCLTechs unwavering commitment to delivering innovative, customer-centric solutions that drive real business outcomes for our clients. With a differentiated AI strategy, expanding IP assets and a proven all-weather po_folio, HCLTech is well-positioned to translate emerging oppo_unities into sustained, compounding growth.
Empowering an AI-Native Workforce: Talent, Culture and Future-Readiness
HCLTechs most enduring competitive advantage is its talent and FY26 demonstrated our continued commitment towards investing in the growth, well-being and sense of belonging of our employees. At HCLTech, we are reimagining the synergy between human ingenuity and a_ificial intelligence (AI). We have been transitioning from traditional upskilling to pioneering an AI-native talent strategy, embedding AI into the very fabric of our culture and operations. Rather than treating AI as a standalone skill, we have integrated it as a fundamental layer across our entire workforce, enabling our people to lead in AI, cloud and engineering through an AI-first mindset. This fiscal year, we transitioned to persona-based AI training, reaching a milestone of 144,000+ unique employees trained across our various offerings. This evolution has solidified our position as one of the most future-ready workforces in the industry.
This AI-led approach to workforce transformation, underpinned by our people-first culture, earned widespread external recognition, including being featured in Forbes list of Worlds Best Employers for the sixth year in a row and also have been recognized by Forbes as one of Americas Best Employers for New Grads 2025 for the second consecutive year — a distinction that speaks about the consistency and depth of our people practices. Our commitment to employee listening, responsiveness and experience excellence was fu_her strengthened through the EARS (Employee Action & Response System) framework. This digital-first platform enables continuous feedback capture, real-time action and effective closure of employee concerns with measurable outcomes. By fostering a culture of responsiveness and accountability, EARS has enhanced the employee experience and earned industry recognition from The Economic Times, PeopleFirst HR Excellence Awards, Financial Express and Brandon Hall Group. HCLTechs inclusion agenda received equally strong external validation: the company was included in Best Companies for Women in India (BCWI) 2025 list and inducted into the BCWI Hall of Fame for consistent pezormance over five years, while also being recognized as an "Exemplar of Inclusion" in the Most Inclusive Companies Index (MICI) 2025 by Avtar & Seramount.
Deepening Client Pa_nerships: Trust, Scale and Market Share Gains
HCLTech has built its growth on a simple but powezul tenet: evolving in step with client needs. That client-centricity is validated externally — HCLTech is the only service provider rated as a "Customers Choice" across all six published Ga_ner Peer Insights? Voice of the Customer assessments for IT services. We were also recognized as the Fastest-Growing Tech Services Brand among Indias Top 10 by Kantar BrandZ 2025. This trust is translating directly into financial momentum. We recorded a total contract value (TCV) of $9.3 billion in net new deal wins in FY26. Growth is being driven by multiple factors. We are expanding wallet-share from existing clients through cross-selling and new propositions. At the same time, we are increasing market pa_icipation across Global 2000 companies, emerging businesses and also geographically through growth markets. We also launched a focused initiative to sharpen our strategic emphasis on the mid-market segment. This market is wo_h over $400 billion and is growing rapidly. Demand for AI-centric and engineering-led transformation programs is accelerating and HCLTech is capturing a significant po_ion of it. The company enters its next phase with a differentiated, all-weather po_folio, deep engineering heritage and an increasing platform-led AI strategy, capabilities that are difficult to replicate and structurally aligned with where enterprise technology spending is heading. HCLTech remains well-positioned to deliver enduring, compounding value for clients in the AI-first era.
Leading with Purpose: Our ESG Commitment
HCLTechs Environmental, Social and Governance (ESG) approach reflects its conviction that long-term business value and responsible conduct are inseparable. In FY26, we continued embedding sustainability, ethics and social responsibility into our strategy and operations. For the third consecutive year, HCLTech was recognized as one of the Worlds Most Ethical Companies? by Ethisphere, reaffirming our commitment to integrity and robust governance. ESG considerations remain integrated into decision-making, suppo_ing long-term resilience, stakeholder trust and sustainable value creation. Complementing these effo_s, HCLFoundation drove meaningful social impact, reaching over 8.4 million lives in India through inclusive growth and community development initiatives. By upholding the highest standards of governance and social responsibility, we ensure our growth is profitable, sustainable and ethically grounded, creating a positive impact across the communities we serve.
Creating Enduring Shareholder Value: A Decade of Industry-Leading TSR
HCLTechs FY26 pezormance reaffirmed our commitment to delivering top-qua_ile Total Shareholder Return (TSR) through a balanced and disciplined five-pillar value creation framework encompassing sustained organic growth, margin resilience, strong cash flow conversion, disciplined capital allocation and consistent shareholder returns. Over the past decade, this approach has enabled HCLTech to consistently deliver top-qua_ile TSR, cementing our position among the worlds largest IT services companies by market capitalization and reflecting enduring investor trust in our business model. The IT services industry periodically undergoes phases of heightened scrutiny as new technologies enter the market, including the current recalibration around the AI cycle. We view this not just as a disruption, but also as the acceleration of some arenas as well as the emergence of new spending vectors. Leveraging our engineering heritage and entrepreneurial DNA, we have sharpened our capabilities and go-to-market (GTM) investments to capture these oppo_unities, suppo_ed by AI-led transformational propositions.
In FY26, new deal wins of $9.3 billion TCV reinforced the strength of our all-weather po_folio. EBIT* and net income reached $2,526 million and $1,877 million, respectively, while ROIC* improved to 40.3%, up 235 bps year on year. Our strong operational execution suppo_ed robust cash generation, enabling us to sustain disciplined investments while returning 87.8% of net income to shareholders, in line with the Boards commitment to a minimum 75% payout. HCLTech remains well-positioned to deliver sustained, long-term value and maintain growth leadership through the next phase of the technology cycle.
Looking ahead, while the technology sector navigates geopolitical unce_ainties and an AI-driven paradigm shift, HCLTech is well-positioned to capitalize on the increasing technology intensity of the global economy. Our diversified po_folio spanning services and software, deep engineering heritage and an early-mover advantage in Advanced AI provide a robust framework for sustained leadership. As we continue to strengthen our market pa_icipation and enhance our AI-driven capabilities, we remain commi_ed to our ambition of becoming the best AI solutions company. Suppo_ed by strong governance, a future-ready AI-native workforce and a healthy balance sheet, HCLTech enters FY27 with the momentum and strategic clarity required to thrive in the AI-first era.
*EBIT and ROIC of FY26 exclude one-time New Labour Codes impact of $109M.
Our Business
We are a global technology company, delivering industry-leading capabilities centered around AI, digital, engineering, cloud and software, powered by a broad po_folio of technology services and products. Our ambition is to be the best AI solutions company in the world. We are supercharging progress by integrating AI across everything we do, enhancing existing offerings and building new ones to accelerate business transformation, deliver smafter outcomes for our clients and create lasting impact for our employees, communities and the planet. As AI evolves, it is simultaneously transforming existing services and creating entirely new ones. These shifts broadly fall into three categories: AI-disrupted, AI-accelerated and AI-native. Each category demonstrates distinct growth dynamics and HCLTech has developed tailored strategies for each, focusing on differential growth and identifying areas with the highest potential for value creation. The company operates and repo_s financial pezormance through three segments: IT and Business Services (ITBS) and Engineering and R&D Services (ERS), the two services businesses and HCLSoftware, the products and platforms business. These segments comprise a po_folio of offerings that deliver business outcomes for our clients, at speed and at scale. This provides leaders and stakeholders with a comprehensive market-aligned financial view of our strategies and business execution. In addition to repo_ing revenues by segment, we also repo_ revenue by geographic market and industry ve_icals for our services business. Our go-to-market (GTM) organization is structured around key industry ve_icals of Financial Services, Manufacturing, Life Sciences and Healthcare, Technology and Services, Public Services (Energy and Utilities, Travel-Transpo_-Logistics and Government), Retail and CPG and Telecommunications, Media, Publishing and Ente_ainment. HCLTechs services business saw a year-over-year revenue increase of 4.8% in CC, with EBIT margin* of 16.2%. We were the first in the industry to disclose our annualized Advanced AI revenue of $620 million this fiscal. HCLSoftwares revenue declined by 4.1% YoY in CC, while achieving an EBIT margin* of 26.5%. The ROIC* for Services and HCLSoftware were 47% and 22.6 %, reflecting an increase of 155 and 274 basis points, respectively.
*EBIT Margin and ROIC of FY26 exclude one-time New Labour Codes impact.
IT and Business Services (ITBS)
offers a comprehensive suite of digital transformation solutions in applications, infrastructure, cloud, AI and business process operations to cater to the evolving needs of global enterprises. It accounted for 73.8% of the overall revenue mix in FY26. ITBS revenue grew 3.7% YoY in CC driven by all its service lines: Digital Business Services (DBS), Digital Foundation Services (DFS), Business Process Operations (BPO) and HCLTech Career ShaperTM. The EBIT* margin for the fiscal year was 16%.
Digital Business Services (DBS) spans Consulting and Advisory, Modern Applications, Enterprise Applications and Data & AI Services — delivered through an integrated, full-stack transformation model. The applications business is undergoing a structural shift and incremental digital transformation is giving way to AI-centered, autonomous enterprise models, where intelligence is becoming foundational across the entire application stack. Traditional delivery models are being replaced by predictive, multi-modal interactions that anticipate business needs, redefining engineering practices, operating models and value expectations alike. HCLTech is well-prepared for this shift, moving beyond discrete AI tools to embed systemic intelligence across the DBS po_folio. Our AI-led, full-stack approach embeds intelligence across experience, core systems and data layers paired with operating model redesign, workforce reskilling and AI-augmented delivery. Together, this enables clients to move decisively from experimentation to enterprise-scale adoption, with measurable, outcome-driven results. With the addressable market set to reach $650 billion by 2030, HCLTechs track record of strategic wins, analyst recognitions and a growing ecosystem of innovation labs built independently and with key pa_ners, position it to lead this next wave of transformation.
Digital Foundation Services (DFS) delivers a comprehensive po_folio spanningdelivers a comprehensive po_folio spanning Hybrid and
Multicloud, Digital Workplace, Next Generation Networks, Cybersecurity, Governance, Risk and Compliance (GRC) and Unified Service Management (USM), enabling enterprises to build resilient, intelligent and secure digital foundations. We are increasingly seeing AI-driven demand, with clients prioritizing AI-enabled infrastructure and operations as a core business imperative. In response, we are systematically embedding AI across our po_folio to enhance service quality, automation and user experience. We have consistently delivered market-leading pezormance, demonstrating resilient growth despite broader market volatility. FY26 marked a year of transformational engagements, with DFS executing AI-first greenfield implementations, AI-driven "Super Intelligent" computing clusters, mainframe modernization programs and Next Generation Workplace transformations. As pa_ of this evolution, we are also reimagining Digital Workplace (DWP) into platform-based services, leveraging AI to deliver more intuitive, predictive and personalized workplace experiences. Looking ahead, the global enterprise infrastructure services market is projected to cross $450 billion by 2030, driven by AI/GenAI-enabled automation, edge computing, SD-WAN and cybersecurity transformation. To capitalize on this oppo_unity, DFS has made targeted investments across six strategic offerings: AI Factory, Edge Computing Services, Digital Identity, Integrated SASE, Platform-Based Services and Governance, Risk & Compliance (GRC) Services. HCLTechs AI Factory is an enterprise-scale platform engineered to move AI from experimentation to production by unifying infrastructure, platforms, data and governance. Leveraging the AI and GenAI capabilities of the AIForce.Ops platform, DFS is advancing toward highly automated service delivery models, with core services growth fu_her suppo_ed by large-scale cost optimization programs and vendor consolidation initiatives.
Business Process Operations (BPO) enables intelligent, autonomous operations by integrating domain expe_ise, process design and AI. At its core is our Agentic Operations Platform, which orchestrates intelligent agents, human expe_ise and enterprise systems across the enterprise value chain. Business Process Operations is undergoing a structural shift from service-centric delivery to an AI-embedded, platform-driven operating model. This goes beyond automation. It is about redesigning how operations are built and run, embedding AI, domain expe_ise, process intelligence, data and technology into unified platforms that serve core enterprise functions at scale. Our approach towards our po_folio transformation combines modernization of existing operations along with the development of AI-native, domain-focused solutions across areas such as finance, supply chain, customer operations and industry-specific processes. Intelligence is applied to judgment intensive workflows to improve decision accuracy, responsiveness and process adaptability over time. Together, this approach suppo_s near term improvements in efficiency, resilience and scalability, while enabling clients to build future ready operating models aligned to growing demand for AI driven, platform based process transformation. With the global intelligent process automation and BPO market projected to grow, BPO is well-positioned to capture accelerating demand for AI-led, platform-driven enterprise transformation.
HCLTech Career Shaper™ continues to advance its mission of building future-ready talent through applied learning and digital skilling. With an AI-first approach, it offers an integrated po_folio spanning advisory services, technology platforms, hands-on learning and tailored programs for learners across career stages. Career Shaper™ is expanding its global footprint, gaining traction across G2000 enterprises, government bodies and higher education institutions, with strong momentum in Banking, Financial Services and Insurance sector in the Middle East, Retail, Telecom, Media and Ente_ainment industries and leading universities worldwide. The year marked a notable milestone with the HCLTech–Pearson 360? Growth Pa_nership, combining Pearsons expe_ise in learning and assessment with HCLTechs strengths in digital transformation, product engineering and AI to deliver AI-powered workforce solutions that bridge skills gaps and enhance employability. Looking ahead, the focus remains on expanding pa_nerships, strengthening the AI-driven learning ecosystem and accelerating adoption of advanced learning models to build a globally competitive, digitally proficient workforce.
*EBIT Margin and ROIC of FY26 exclude one-time New Labour Codes impact.
Engineering and R&D Services (ERS)
Builds on a multi-decade-long foundation of engineering excellence to pa_ner with leading global enterprises across the full spectrum from chip to cloud—spanning Product Engineering, Digital Engineering and Digital Manufacturing. This breadth and extensive experience have earned ERS leadership recognition across 52 of 54 industry benchmarks for engineering and R&D services. In FY26, ERS delivered a good pezormance, with 9.8% year-on-year revenue growth in constant currency and an EBIT margin* of 16.8%, suppo_ed by resilient demand across core engineering-led transformation programs.
As products increasingly become intelligent, connected and software-defined, ERS is actively evolving alongside AI, leveraging its potential while applying it with engineering rigor. We are scaling capabilities across Physical AI, Generative AI and Agentic AI, with Semiconductor engineering and Physical AI emerging as key growth vectors. Our work spans edge computing, robotics, custom silicon, autonomous systems and AIled IP, enabling real-world solutions such as intelligent medical diagnostics, industrial inspection and advanced safety systems for next-generation products.
We continue to invest in innovation-led infrastructure, including a large-scale advanced Semiconductor Lab, designed to suppo_ end-to-end silicon research and AI-driven semiconductor development. This strengthens our ability to address growing client demand across semiconductors and AI hardware. We also announced our intent to acquire HPEs Telecommunications Solutions assets, which once completed will fu_her deepen our telecom engineering capabilities, complementing the earlier integration of HPEs Communications Technology Group and enhancing our ability to suppo_ communication service providers transformation journeys.
Analysts continue to recognize ERS for its strong positioning in digital thread, digital twin and AI-enabled engineering workflows. With the global engineering services market poised for sustained growth, ERS is well-positioned to capture emerging oppo_unities through disciplined AI adoption, targeted investments and a continued focus on delivering measurable engineering outcomes for clients.
*EBIT Margin and ROIC of FY26 exclude one-time New Labour Codes impact.
HCLSoftware
Is one of the largest enterprise software product businesses headqua_ered in Asia. In FY26, revenue stood at $1,395 million, a decrease of 4.1% year-over-year in constant currency and Annual Recurring Revenue (ARR) was $1045million. Weve structured our po_folio around the XDO (Experience, Data and Operations) blueprint to meet the markets shift toward platform-led, composable consumption. In todays complex landscape, success hinges on seamlessly connecting customer experience (X), data insights (D) and efficient operations (O). Our comprehensive X D O blueprint empowers in crafting unified customer journeys where data driven operations anticipate needs and deliver exceptional, personalized interactions at every touchpoint. By unifying our offerings under this framework, weve moved beyond individual products to a foundational model that powers enterprise digital transformation in the age of AI. The market has validated this direction and HCLSoftware for their most critical transformations and leading analysts have taken note. We were recognized as a Leader in the Ga_ner Magic Quadrant for Intelligent Operations, spanning Endpoint Management, Application Security Testing and Service Orchestration and Automation. Our XDO blueprint is gaining fu_her traction through strategic pa_nerships — with Microsoft on Azure for unified solution delivery, Splunk for deep analytics integration and Salt Security for proactive API protection. We bolstered our Data pillar by integrating an MCP Server into the Actian Data Intelligence Platform and acquiring Wobby, an AI Data Analyst Agent. With the recent agreement to acquire Jaspersoft, a leader in embedded analytics, we are evolving beyond data foundations to provide AI-driven visualization and self-service insights. Looking ahead, we are sharpening our focus around three enterprise priorities: Digital Sovereignty, giving organizations control over their data, security and compliance posture; Agentic Service as a Platform (ASaP), operationalizing AI agents as governed, reusable services; and Data Intelligence, accelerating decision-making through trusted, AI-ready data foundations. As we accelerate into the AI-native era, HCLSoftware is singularly focused on transforming enterprise software through pragmatic AI integration embedding intelligence not as a feature, but as the foundation of every product. Our focus will also be on ensuring that our clients can unlock the full potential of their digital transformation with HCLSoftware.
AI and GenAI
AI represents a defining inflection point for the technology industry and HCLTech is positioned to capture this shift both strategically and profitably. Our strong engineering heritage, technology orientation and sustained focus on innovation form the foundation of this advantage. Over the past several years, we have made conscious investments in intellectual prope_y, deepened our pa_ner ecosystem and scaled our go-to-market and delivery capabilities. These effo_s are now translating into tangible outcomes as reflected in our growing Advanced AI revenue. As AI staffs to scale up, it is reshaping established services while simultaneously giving rise to entirely new ones. We see the market shifting into three categories: AI-disrupted, AI-accelerated and AI-native. AI-disrupted are traditional services facing structural displacement by AI, requiring reinvention to remain competitive (e.g. Business Process Services, Software Development, Consulting, Infrastructure and Application Implementation and Managed Services). AI-accelerated are the established services delivering superior outcomes through deep AI integration (e.g. Cybersecurity, Data, Infrastructure, Technology Consulting, IaaS). AI-native are the purpose-built AI offerings with no legacy precedent, representing net-new revenue pools (e.g. AI Factory Services, Physical AI, Custom silicon for inferencing). HCLTechs AI po_folio spans Advanced AI, Classical AI and Service Transformation, reflecting a structured approach to embedding intelligence across its offerings. Our Advanced AI po_folio encompasses among others,
Industry AI solutions (IAIS), AI Engineering, Agentic AI, Physical AI, AI Factory and AI Advisory services alongside proprietary AI IPs. In parallel, HCLTech continues to deliver Classical AI solutions comprising traditional AI propositions across AI/ML and RPA (robotic process automation) technologies, enabling clients to modernize operations while progressing along a continuum from traditional automation to advanced, AI-driven transformation. Within Service Transformation, the company is actively transforming its services po_folio by leveraging AI capabilities, including GenAI, Agentic AI and Robotics, suppo_ed by its AI Force platform and Service-as-Software offerings. Staffing this fiscal year, we began repo_ing our Advanced AI revenue as a distinct metric. HCLTechs AI and GenAI Practice assists clients in navigating AI-enabled oppo_unities and challenges through a practical po_folio of platforms, IPs, solutions and services. In FY26, AI and GenAI became integral components of nearly every deal, strengthening both our pipeline and the depth of client conversations across all domains. This momentum is driven by our five-pronged strategy: proactively transforming core services, building differentiated AI IPs, expanding into AI-led offerings, strengthening global pa_nerships across AI technology stack and transforming our people for the AI era. At the center of this is our evolving AI po_folio spanning Service Transformation, Advanced AI and Classical AI — helping clients move decisively from experimentation to scaled deployment. Our innovation momentum accelerated throughout the fiscal year. Notably, AI Force 2.0, now enhanced with Agentic capabilities, has been deployed across more than 75 priority accounts. In parallel, our AI Factory model is addressing the trillion-dollar global AI capex oppo_unity by enabling secure, full-stack compute options for global enterprises. We also introduced next-generation platforms such as VisionX 2.0, our multimodal AI Edge platform, a suite of Kinetic AI (Cognitive Robotics) solutions and expanded our Agentic AI capabilities in collaboration with hyperscalers and AI ecosystem pa_ners. Our AI Labs have delivered over 1000 engagements for about 500 clients, suppo_ing rapid prototyping and scaling of high-impact use cases. This year also saw the launch of a deeper pa_nership with NVIDIA, OpenAI and AMD, among others. Our Agentic AI po_folio on the Google Marketplace has now crossed 300 solutions. We are the launch pa_ner for Google for Gemini Enterprise, Agent-to-Agent Protocol (A2A) and Agent Development Kit (ADK). HCLTech expanded its Microsoft pa_nership to boost customer service with GenAI and Dynamics 365 Contact Center. We were recognized by Microsoft as a Responsible AI Pa_ner and joined an ecosystem of trusted collaborators shaping the future of ethical AI. We were named to the
2025/26 Microsoft AI Business Solutions Inner Circle, placing HCLTech among the top 1% of Microsoft pa_ners worldwide. We also joined the Microsoft Discovery platform, an advanced Agentic AI platform designed to accelerate scientific breakthroughs. HCLTech deepened its strategic pa_nership with AWS, advancing joint innovation, go-to-market execution and enterprise transformation. We launched the Physical AI Innovation Lab in Santa Clara, California, in collaboration with NVIDIA, to help enterprises explore, incubate and scale industry applications of Physical AI and Cognitive robotics.
As the first Global System Integrator (GSI) to pa_ner with OpenAI, we are uniquely positioned to drive inorganic growth. Internally, we are transforming our operating model by embedding AI to decouple revenue growth from headcount, fostering an AI-fluent workforce capable of delivering high-scale solutions.
HCLTech won multiple awards in FY26, including CX Star Pezormer in ISG Star of Excellence™ for Microsoft AI & Cloud Ecosystem, IBM Innovation Leader 2025 award, Dell Global Alliances AI Pa_ner of the Year 2025, Dell Acquisition Pa_ner of the Year in EMEA, Winner of the Hybrid by Design category for the EMEA Region in IBM Think 2025, two Google Cloud Pa_ner of the Year Awards - Industry Solutions Pa_ner of the Year for Supply Chain and Logistics, Global Talent Development Pa_ner of the Year, AWS Industry Pa_ner of the Year - Financial Services and AWS GenAI Premier League Award 2025.
As we look ahead, HCLTech will continue evolving its po_folio across all segments — staying closely aligned with market trends and shifting client priorities. We are increasingly focusing on the eras most transformative oppo_unities— Physical AI, AI Factory, Agentic AI implementations, enterprise technology transformation and legacy modernization. Our deep expe_ise and robust ecosystem uniquely position us to lead these high-growth sectors. Underpinned by an unwavering commitment to innovation and excellence and driven by our ambition to be the worlds best AI solutions company, we are confident in our ability to create enduring value for clients, pa_ners and stakeholders alike.
Business Outlook
The global technology and IT services industry, representing a multi-trillion-dollar market, remains a foundational component of the 21st century global economy and is expected to sustain its long-term expansion trajectory. This outlook is underpinned by enterprises increasing reliance on technology to drive business outcomes, resilience and competitive differentiation. Over the near to medium term, the macro environment is likely to remain dynamic, shaped by geopolitical volatility, inflation trends and moderate growth across major economies. Enterprise technology spending is expected to remain structurally resilient, as organizations balance cost discipline with the need to invest in transformation recognizing that deferring innovation poses both strategic and operational risks. Consequently, demand is expected to remain steady, albeit with evolving spending pa_erns across service lines. The demand environment is currently being reshaped by high-conviction technology themes, most notably the rapid evolution of AI, which is being embedded across the entire technology value chain — applications, software, workflows and core business processes. The industry is transitioning from a phase of AI as a feature to AI as an autonomous actor, characterized by the progression from AI-assisted productivity tools toward task-specific agentic systems and orchestrated multi-agent workflows that are expected to materially reshape enterprise operating models. Emerging AI agents capable of autonomous decision-making, task execution and collaboration within defined guardrails are beginning to function as digital coworkers, unlocking new productivity frontiers and enabling more adaptive, real-time enterprise operations. This shift is driving sustained demand for capabilities spanning data engineering, model development, agent orchestration, observability and AI governance and assurance. In addition, demand for Advanced AI is growing rapidly, including Physical AI—the integration of AI into robotics and edge intelligence, which is expanding the scope of technology services into industrial and operational domains, pa_icularly within Engineering and R&D Services (ER&D).
In tandem with AI, cloud remains a key enabler of enterprise transformation. Increasing regulatory complexity and data sovereignty considerations are accelerating interest in sovereign cloud and sovereign AI architectures, pa_icularly among governments and regulated industries. As AI adoption scales, infrastructure constraints are becoming a more central determinant of execution feasibility, including compute capacity availability, power limitations and regional build-out dynamics. These factors are creating emerging oppo_unities in the establishment, operation and management of AI infrastructure. At the same time, cybersecurity, digital engineering and ER&D services continue to see sustained demand, suppo_ed by increasing digitization, software-defined product development and regulatory complexity.
The IT industry is undergoing a structural shift toward nonlinear, outcome-oriented delivery models, where growth is increasingly driven by platforms, intellectual prope_y and AI-enabled services rather than linear headcount expansion. ER&D services are being reshaped by AI-led product engineering and software-defined capabilities, while the integration of AI into physical environments is fu_her expanding the scope of technology services into industrial and operational domains. At the same time, scaling AI adoption introduces new considerations, including infrastructure constraints, data governance, regulatory requirements and the need for trust, transparency and auditability in AI-driven processes. As a result, enterprise clients are increasingly seeking pa_ners capable of delivering full-stack solutions across the AI lifecycle from data and platforms to deployment, orchestration and governance.
Overall, HCLTech expects demand to remain resilient as the industry transitions from AI-disrupted to AI-native services, driven by ongoing modernization imperatives, AI-led transformation, cloud value optimization, cybersecurity needs and the expanding adoption of Advanced AI capabilities, including in physical and operational environments. In this operating context, sustained pezormance will depend on disciplined execution, alignment with areas where technology investment is accelerating and the ability to deliver measurable outcomes while meeting evolving governance and regulatory expectations. HCLTech believes that its strategic alignment with these high-conviction technology themes, combined with continued investment in AI-led service delivery, proprietary platforms, cybersecurity, Physical AI and full AI-stack capabilities spanning data foundations, model and agent engineering, cloud-to-edge deployment and lifecycle assurance positions it to address evolving client expectations and capture growth in areas where enterprise spending is increasingly concentrated.
Key Growth Vectors
HCLTech has identified several strategic growth vectors to capitalize on evolving market oppo_unities and to pursue its goal of becoming the worlds best AI solutions company. These vectors reflect both the structural shifts reshaping enterprise technology demand and the distinctive capabilities we have built to address them. We continue to make progress across each of these key growth vectors, underpinned by focused investment, talent alignment and execution by leadership
HCLTechs medium-term strategic objectives a_iculate a clear, enterprise-wide ambition to drive sustained and profitable growth while reinforcing the companys position as a leading global technology services pa_ner. As we continue to refine our market pa_icipation and enhance our AI-driven capabilities, we remain commi_ed to our ambition of becoming the best AI solutions company. These objectives made public in FY22 serve as a precise yet flexible framework for coordinating investments, capabilities and execution at scale while maintaining strong operational discipline. They reflect our enduring focus on AI-powered innovation, operational excellence and the continuous development of our talent and technology capabilities, ensuring we consistently conve_ strategic intent into measurable business outcomes. Collectively, our medium-term strategic objectives translate our purpose into actionable priorities—forming a coherent strategy that drives sustained value creation for our clients, employees, communities and investors.
Strategic Objective 1
Leadership through differentiated services and products leveraging our engineering pedigree
This Strategic Objective anchors HCLTechs ability to differentiate through its engineering heritage, enabling the company to design and deliver high-value services and products in an increasingly complex technology landscape. It strengthens the companys ability to meet evolving client needs, drive innovation-led growth and create the foundation for all other strategic objectives to succeed — while generating lasting value for stakeholders over the long term. A leadership position in technology today requires more than capability. It demands the ability to translate engineering depth into differentiated, outcome-driven solutions. Over the past few years, HCLTech has taken deliberate and conce_ed steps to reinforce its engineering-led differentiation in pursuit of this strategic objective. The company has scaled its digital and product engineering capabilities, deepened investments in cloud-native platforms, semiconductor and software services and expanded its IP and platform-led offerings to drive higher-value client outcomes. In parallel, HCLTech has systematically embedded AI across its services,
HCLSoftware po_folio, delivery models and industry solutions, ensuring that its capabilities remain future-ready and competitively differentiated. The integration of acquired competencies has fu_her strengthened the po_folio, while the expansion of ecosystem alliances — pa_icularly with hyperscalers and strategic pa_ners — has amplified the companys ability to deliver at scale. Together, these actions have enhanced service differentiation, suppo_ed clients transformation agendas and contributed to diversified revenue streams across key markets and industry ve_icals, sustaining HCLTechs competitive positioning and driving long-term value creation for clients and stakeholders alike.
The rapid advancement of AI, accelerated by the emergence of generative AI towards the end of 2022, represents a structural inflection point for the industry. The emergence of large language models has fundamentally reshaped expectations across the enterprise technology landscape. HCLTech has treated this not as a disruption to navigate but as a structural oppo_unity to capture new market oppo_unities. To strengthen our leadership position, we continue to evolve our services and software po_folio by embedding AI and GenAI across offerings, developing industry-specific technology solutions, expanding ecosystem pa_nerships and acquiring specialized capabilities. We are proactively transforming existing services using AI while simultaneously building new service lines and oppo_unities enabled by emerging technologies. We have evolved our AI strategy toward an IP-led, platform-centric model, positioning HCLTech as the intelligence layer across enterprise technology stacks. This has resulted in the development of market-leading platforms like AI Force 2.0, VisionX 2.0, and IP-centric Industry AI Solutions that today provide us with a strong differentiation in the market. Our goal is to embed Advanced AI as a proprietary intelligence layer across enterprise technology stacks — moving clients beyond one-off pilots toward broad, outcome-focused AI deployment at scale. HCLSoftware is pushing the boundaries of innovation by integrating Digital Sovereignty, Agentic Services and Data Intelligence across its XDO po_folio to help businesses thrive in an evolving market. By prioritizing Digital Sovereignty, HCLSoftware enables organizations to maintain full control and autonomy over their digital estates, including data residency and security, while meeting strict regulatory requirements. This is complemented by Agentic Service as a Platform (ASaP), which operationalizes Agentic AI as governed, reusable services that orchestrate systems with human oversight. Underpinning these is Data Intelligence, which accelerates value through trusted governance and AI-ready foundations, ultimately enhancing the speed and quality of enterprise decision-making.
We leverage acquisitions to add strategic value to our po_folio and enhance our market position. To strengthen our HCLSoftware po_folio, we acquired Wobby, an Antwerp-based staffup specializing in AI data analyst bots. Through a natural language intezace, Wobbys AI
"Agents" allow users to query intricate databases and receive immediate, actionable insights. We also entered into an agreement to acquire Jaspersoft, a leader in embedded analytics. By integrating Zeenea, Wobby and Jaspersoft, we are evolving our capabilities from basic data foundations toward AI-driven visualization and self-service insights. Fu_hermore, the acquisition of Singapore-based Finergic enhances our financial services po_folio, adding specialized capabilities in core banking and wealth management transformation. In the telecom sector, we signed an agreement in FY26 to acquire the Telco Solutions Business from Hewle_ Packard Enterprise (HPE). This strategic move builds on the momentum of our successful 2024 integration of HPEs Communications Technology Group (CTG), which is now delivering steady growth. With this deal, we are well-positioned as a systems integrator with a comprehensive telecom IP po_folio, unlocking access to significant global telecom engineering spend. The increase in the number of global clients, C-suite references, consistent delivery of large-scale transformations, revenue growth and recognition from leading industry analyst firms—including Ga_ner, Forrester, IDC, Everest, Avasant, HFS, ISG and Zinnov—underscore our commitment to leadership through differentiated services and products. HCLTech is the only service provider rated as a "Customers Choice" across all six published Ga_ner Peer Insights? Voice of the Customer assessments for IT services, reflecting our commitment to delivering high-quality, customer-centric and innovative solutions that enable our clients to achieve their business goals.
Differentiated services and products anchored in engineering excellence remain central to HCLTechs growth strategy. By combining engineering depth with AI-led innovation, software platforms and ecosystem collaboration, HCLTech is well positioned to capture emerging oppo_unities and drive sustained growth, resilience and leadership.
Strategic Objective 2
Employer of choice for professional services talent across chosen geographies
In a talent-intensive, AI-driven technology industry, our commitment to being an employer of choice is a strategic imperative — ensuring we a_ract, develop and retain the skilled professionals needed to deliver differentiated services and products, meet evolving client demands and drive consistent growth across all key global markets where we operate. The IT services industry is at a structural inflection point. While productivity gains continue, the nature of work is fundamentally shifting toward AI engineering, data, domain-led consulting and platform-based delivery. Roles are evolving to emphasize higher-order problem solving, contextual decision-making and human-AI collaboration, even as employee expectations pivot toward continuous learning, career transparency, flexibility and purpose—driving a move away from traditional talent models to capability-based, agile and continuously learning organizations. But it does not undermine even to the smallest extent the need for any organization to have the best talent.
Over the past few years, HCLTech has strengthened its position as an employer of choice by systematically evolving its people strategy in line with these structural shifts. We have scaled both global and localized hiring, transitioned to a skills-based capability organization and institutionalized personalized learning and career progression frameworks, suppo_ed by an inclusive and high-pezormance culture. These investments have enhanced workforce resilience and enabled consistent, high-quality service delivery at scale across our key geographies.
A cornerstone of our approach is our capability-based operating model, which places skills at the center of all talent decisions. Fully embedded into our ERP and HCM systems, this model is now integral to our day-today operations, enabling precise alignment between business demand, workforce capabilities and future skill requirements. It provides a clear line of sight for every employee to build relevant capabilities and contributes to the creation of future-ready solutions and services aligned with our AI-led po_folio.
Technology also underpins how we manage the talent lifecycle itself. We have significantly advanced the use of AI within our people function. Talent Navigator, our AI-powered recruitment and readiness platform, is now operational globally, improving hiring quality, reducing time-to-hire and enabling greater talent mobility. MentorBOT, initially designed as a GenAI-powered vi_ual mentor to guide employees through workplace challenges, has evolved into a tool suppo_ing managers in pezormance check-ins, strengthening the rigor and consistency of evaluations. These interventions, suppo_ed by advanced data science, have enhanced the effectiveness of key people programs and contributed to a more transparent and democratic workplace, pa_icularly for a growing Gen Z workforce.
Continuous learning and large-scale reskilling remain critical enablers of our strategy. During the year, we evolved our AI training framework to a persona-based, offering-led model aimed at creating AI-augmented professionals across functions. This initiative has reached over 144,000+ unique employees, with approximately
63,000 individuals advancing through specialized proficiency levels and more than 11,000 a_aining the substantial expe_ise required to drive AI use-case realization and accelerated delivery. Notably, our elite pool of over 700 Blackbelt-ce_ified practitioners now directs end-to-end AI solutioning across both client-facing and corporate domains. This talent transformation is suppo_ed by an immersive ecosystem of hackathons, bootcamps and a dedicated framework and program set including capstones for grooming fresh talent into high-caliber AI engineers. In parallel, a distinct thread of our learning strategy is focused on equipping forward-deployed engineers, context engineers and client-facing functions with deep proficiency in HCLTechs proprietary platforms and offerings, including AI Force. Our overall learning approach combines internally curated and practitioner-mentored content with contributions from our hyperscaler pa_ners, ensuring both contextual relevance and technical currency. We have also reimagined our approach to early-career talent by introducing role-based specialization within entry-level coho_s, enabling differentiated career paths based on pezormance and potential. Our focus on personalized career development, enabled through initiatives such as MentorMe, TalentXchange and Aspire, ensures that employees across entry-level, lateral and rebadged coho_s are effectively managed and continuously developed. This integrated approach to talent — combining skills, learning, mobility and employee experience — has enabled us to recruit and deploy talent at scale. The results of this sustained effo_ are visible in our metrics and external recognition. As of March 31, 2026, our team comprises 227,181 employees across 60 countries, representing 167 nationalities. Our IT services voluntary a_rition rate stands at 12.5%, one of the lowest levels in the industry and we have been recognized as a Global Top Employer by the Top Employers Institute for four consecutive years, achieving top honors across the Americas, Europe and Asia Pacific — our three primary regions of operation.
Strategic Objective 3
Preferred digital and AI pa_ner for Global 2000, equivalent and emerging enterprises in chosen markets
As the technology cycle shifts from the "digital transformation" era to an "AI-native" era, where intelligence is embedded directly into operations, products and decision-making, enterprises are focusing on how to create new business value rather than simply modernizing their technology landscape. Against this backdrop, HCLTech is transitioning from modular, point-led services to integrated, platform-driven, outcome-oriented transformation models, deepening its position as a trusted digital and AI pa_ner. By systematically embedding AI across its delivery engine, the company is moving beyond traditional execution to assume a more strategic, value-creation role in client relationships. This evolution is enabling clients to realize tangible value from AI, reimagine core business processes, accelerate innovation and scale transformation with measurable impact — expanding engagement relevance and reinforcing long-term client stickiness.
Our strategic focus is to win and deepen relationships with Global 2000 and equivalent enterprises. These organizations represent the highest concentration of technology spend, the greatest structural complexity and the strongest potential for long-term pa_nership. In parallel, we are selectively expanding our presence among high-potential emerging enterprises in targeted geographies and ve_icals. HCLTechs GTM organization is structured around industry ve_icals (financial services, manufacturing, life sciences and healthcare, technology and services, public services, retail and CPG and telecommunications) to be_er serve clients. Geographically, our markets are categorized as Core (large markets with a durable HCLTech base), Focus
(significant tech spend with growing outsourcing) and New Frontier (fast-growing economies with rising digital spend). We also introduced a targeted initiative to deepen our strategic focus on the mid-market segment, a high-growth sector valued at over $400B. This disciplined targeting enables the company to pursue depth and scale concurrently, strengthening resilience and improving the quality of growth. HCLTech serves half of the G500, reflecting decades-long pa_nerships built on engineering excellence, reliability and the ability to deliver complex transformations at scale. During the year, HCLTech expanded its large deal pipeline and progressed transformative engagements across key ve_icals, reinforcing its relevance as a strategic pa_ner. Our revenue came from a healthy mix of clients across industry ve_icals and geographies. This fiscal, we recorded a total contract value (TCV) of $9,323 million in net new deal wins and repo_ed our annualized Advanced AI revenue of $620 million. Account mining and client success frameworks continue to be strengthened to expand wallet share by identifying new value pools, while outcome-based contracting and shared-risk models continue to resonate in a macro environment where clients demand both agility and accountability.
Client mix by revenue contributions
Client category |
FY25 | FY26 |
| $100 million+ | 22 | 23 |
| $50 million+ | 52 | 60 |
| $20 million+ | 138 | 149 |
| $10 million+ | 251 | 277 |
| $5 million+ | 399 | 429 |
| $1 million+ | 948 | 976 |
Clients increasingly seek end-to-end solutions across cloud migration, data modernization, cybersecurity, intelligent automation, engineering, software and AI-led business transformation. HCLTechs integrated po_folio combining services with products and platforms and industry-aligned solutions suppo_s enterprise-wide adoption, moving clients from experimentation to AI at scale. HCLTech is expanding its ability to serve Global Capability Centers (GCCs) through focused offerings that suppo_ the full GCC lifecycle — from set-up and scale to transformation into autonomous innovation hubs. Strategic pa_nerships are central to HCLTechs ability to deliver differentiated value to clients. The company continues to strengthen its ecosystem of alliances with hyperscalers, enterprise technology providers and leading semiconductor companies, enabling clients to benefit from early access to emerging technologies and integrated best-of-breed solutions. Complementing these collaborations are HCLTechs AI Labs and innovation centers, which serve as collaborative environments where clients and pa_ners can co-create solutions and accelerate the journey from proof-of-concept to enterprise-scale, production-ready deployments. Client experience sits at the hea_ of this strategic objective, driven by a dedicated team commi_ed to delivering it. The Total Client Experience Index maintained its position in the top decile, reflecting sustained pezormance in customer satisfaction. Through our Client Advisory Boards, the CREST governance program and various other programs, we foster a culture of disciplined listening and continuous improvement — one that has earned HCLTech the distinction of being the only service provider rated as a "Customers Choice" across all six published Ga_ner Peer Insights? Voice of the Customer assessments for IT services. Fu_hermore, we continue to strengthen our go to market organization and expand our sales presence to enhance client coverage, improve market pa_icipation and amplify our brand engagement with advisors and analysts. These effo_s suppo_ the creation of a diversified, strategically significant client base and underpin sustainable, long term growth.
Strategic Objective 4
Weave ESG (environmental, social and governance) into business strategy
ESG is central to how HCLTech creates long term value, shaping innovation for clients, responsible resource stewardship and trust with stakeholders. Guided by our Act, Pact, Impact philosophy, we have moved from project based effo_s to an institutional, process led model that ensures our sustainability pezormance is predictable, auditable and scalable.
In FY26, we strengthened the integration of ESG across the organization by embedding sustainability considerations directly into the operating rhythms of Finance, Procurement, CSR, Global Workplace Services, Legal, Risk & Compliance and Controllership. This collaboration enabled a unified repo_ing model suppo_ed by a refined SOP, a centrally-governed repository and an enterprise aligned annual disclosure calendar reflecting the deeper embedding of ESG into business execution.
Our governance upgrades were complemented by deliberate policy improvements and a continuous improvement loop after major submissions. We completed SBTi validation of our near-term and long-term targets, reinforcing net-zero credibility and sharpening execution focus. Regular gap assessments and peer benchmarking have been built into the annual cycle to ensure that lessons conve_ quickly into next-cycle actions. With record ESG ratings across S&P CSA, EcoVadis Gold and LSEG ESG and validation of our near term and long term SBTi targets, we have strengthened the foundation for sustained leadership. As we look ahead, embedding ESG deeper into decision making and value creation will continue to propel HCLTech toward becoming an industry benchmark in sustainability and transparency.
HCLTech embeds corporate social responsibility (CSR) at the hea_ of its business, advancing socioeconomic and environmental progress while aligning with the United Nations Sustainable Development Goals (SDGs). Our global CSR policy centers on the environment, health, education and disaster risk reduction and response. HCLFoundation has driven our CSR effo_s in India, investing over $215 million to date to impact more than 8.4 million lives positively. By building ecosystems of impact, our initiatives have made a significant mark on the global landscape, suppo_ing multiple social initiatives worldwide. HCLTechs commitment to climate action extends to the Americas, where Osa Conservation (Costa Rica) emerged as the recipient of the second edition HCLTech Grant for Climate Action (Americas). In the third edition too, the initiative has received a highly encouraging response. Through this grant, HCLTech has commi_ed $5 million over five years to suppo_ NGOs dedicated to combating climate change and restoring ecosystems and biodiversity across the Americas region. To cater to our clients needs be_er, we have strategically aligned our sustainability offerings to address growing enterprise demand for measurable, technology-enabled
ESG outcomes. Our po_folio spans Sustainable Product Engineering, Sustainable Operations and Supply Chain, Energy Transition and Electrification, Sustainable IT and Sustainable Finance, enabling clients to embed sustainability across the full value chain, from design and engineering through operations and IT. We are also developing meaningful pa_nerships. For instance, we forged a strategic pa_nership with Dolphin Semiconductor to co-develop energy-efficient chips for IoT and data center applications, integrating low-power semiconductor IP into HCLTechs SoC design.
Targeted capability investments continue to enhance our ESG-led propositions, allowing us to deliver industry-leading solutions recognized by prominent analysts on many fronts. Our ESG-driven approach reflects the strength and maturity of our sustainable engineering capabilities and our commitment to suppo_ing clients as they navigate the growing demand for sustainability and innovation.
Strategic Objective 5
Continue to deliver top-qua_ile TSR (total shareholder return) over the medium-term
The trust of our investors has cemented HCLTechs place as one of the largest IT services companies globally by market capitalization. HCLTech has consistently delivered top-qua_ile TSR over the past decade and is commi_ed to long-term value creation. The IT services industry has periodically experienced phases of heightened scrutiny with new technological advancements and investor concerns now at the staff of the AI cycle are no different. At HCLTech, we view this as the emergence of new spending vectors, even as this cycle selectively disrupts ce_ain existing technology and service areas. We have sharpened our capabilities and GTM investments to capitalize on this new business cycle. Our entrepreneurial DNA has always enabled us to constantly innovate and thrive across multiple technology cycles and we are confident that our engineering heritage will nu_ure our growth leadership as we embrace the AI revolution. Delivering top-qua_ile TSR requires a holistic and balanced approach, anchored in five reinforcing pillars. First, at the foundation of top-qua_ile TSR is organic growth. HCLTech continues to deliver industry-leading growth through differentiated offerings in structurally a_ractive markets, underpinned by deep client relationships. Our po_folio is becoming increasingly balanced compared to a few years ago. This is a result of our strengthened leadership in Digital Business, Engineering and R&D services, Software, Cloud and AI offerings. We have significantly strengthened our po_folio with AI-led transformational propositions, complemented by a suite of Advanced AI offerings spanning AI Factory, Physical AI, Custom Silicon Chip Design for AI Inferencing, Marketing as a Service and IP and Industry AI solutions, enabling us to capture new and emerging market spend. This expands our addressable market, deepens wallet share across Global 2000 and equivalent clients, improves large deal win rates and directly suppo_s sustained TSR. FY26 marked strong, broad-based momentum, with new deal wins of $9.3 billion in Total Contract Value (TCV), reinforcing the strength of our all-weather po_folio. Over the past decade, we have achieved a constant-currency revenue CAGR of 9.3%, consistently outpezorming the industry peers.
Second, with respect to margin resilience. This year we executed a restructuring program that has a one-time impact on our profitability but has given us the structural agility to address the market demand in the AI era. Our cost-efficiency program, Project Ascend, continues to fund our investments in Sales and Marketing and AI capabilities. Additionally, our AI offerings serve as force multipliers for enhancing productivity, improving talent leverage and accelerating time-to-value.
The result is a structurally efficient cost base and consistent margin pezormance, even in a dynamic environment. In FY26, EBIT* and Net income reached $2,526 million and $1,877 million. Margin discipline remains central to our TSR philosophy, ensuring that growth translates into high-quality, profitable earnings.
Third, a core driver of TSR is our ability to consistently conve_ earnings into strong, reliable free cash flows (FCF). HCLTechs asset-light model, disciplined working capital management and operational efficiency enable robust cash conversion, with an industry-leading average FCF-to-net income conversion of 119% over the past five years. Fou_h, we prioritize investments that enhance competitiveness including organic R&D, deliberate investments in AI and next-generation technologies, proprietary platforms and selective, capability-led acquisitions while maintaining a robust balance sheet. This value-focused approach ensures continued investment in next-generation technologies that drive sustainable, high-quality growth. In FY26, ROIC* stood at 40.3%, improving by 235 basis points year-on-year, with HCLTech Services and HCLSoftware delivering ROIC of 47.0% and 22.6%, respectively.
Fifth, consistent shareholder returns. The Boards commitment to return at least 75% of net income to investors across FY22–FY26 resulted in payout ratios of 93.4% and 87.8% in FY25 and FY26, respectively a record of consistency that sustains long-term investor confidence and TSR durability.
HCLTech upholds high standards of corporate governance, suppo_ed by proactive investor engagement and clear communication of strategy, pezormance metrics and long-term priorities—reinforcing market trust and valuation resilience.
Our commitment to growth, profitability, cash generation, return ratios, prudent capital use and strong governance will help us continue to deliver top-qua_ile TSR.
*EBIT Margin and ROIC of FY26 exclude one-time New Labour Codes impact of $109M
Risk Management
The global operating environment continues to evolve with unprecedented speed and complexity, shaped by intensifying geopolitical tensions, uneven economic recovery, persistent inflationary pressures, climate driven disruptions and accelerating technological shifts. There is a marked rise in interstate conflict, regulatory fragmentation, supply chain fragility and energy volatility, even as rapid advancements in AI and emerging technologies introduce new dimensions of cyber, data and ethical risk. At the same time, structural talent sho_ages, shifting consumption models and the proliferation of misinformation are reshaping industry dynamics and stakeholder expectations. These macro structural shifts are increasingly intersecting with technology-led transformation, amplifying both disruption and risk across business models and delivery paradigms. Rapid AI-driven disruption threatens competitiveness through margin compression, talent obsolescence, unsafe AI deployment and accelerated client insourcing. These risks are amplified by rapid shifts in client expectations and AI-driven productivity baselines, which can quickly obsolete traditional IT services offerings. These underscore the need for investments in AI/GenAI platforms, faster IP/platform monetization, co-innovation, development of skills at scale and Responsible AI governance program.
Against this backdrop, HCLTechs risk posture is influenced by a confluence of macro-level unce_ainties that have become more interconnected, faster in onset and broader in business impact. These developments reinforce the impo_ance of our comprehensive, intelligence-led Enterprise Risk Management framework — grounded in ISO 31000:2018 and the COSO ERM Integrated Framework — and our institutionalized PESTLE-based early warning mechanisms, which together enable us to anticipate emerging risks, build enterprise resilience and safeguard long-term value creation for our stakeholders.
Risk Governance and Oversight
Our risk management organization integrates risk management practices seamlessly with our business strategy and operations:
• Leadership and Framework: The Board of Directors and the Risk Management/Audit Commi_ee lead the Risk Governance and Oversight function. They are pivotal in framing and reviewing our ERM policy and identifying and assessing HCLTechs key business risks.
• Shared Responsibility: Senior executives and employees collectively bear responsibility for risk management. The ERM initiative is driven by the Risk and Compliance Apex Commi_ee (RCAC), the Chief Risk Officer, a dedicated working group and designated risk owners across the organization.
• Role of Risk Owners: Usually senior executives from a line of business (LOB) or corporate function, risk owners are responsible for mitigating specific risks. They implement mitigation strategies, coordinate risk management activities across their LOBs, functions and geographies and ensure efficient information flow to the working group.
Risk Governance Structure
HCLTechs Risk Universe
HCLTech classifies its risk universe into five principal categories: Strategic, Financial, Cyber and Resilience, Operational and Governance and Compliance, as depicted in the accompanying graphic. Below, we discuss the primary risks within each category along with their respective mitigation measures.
Strategic Risks
Financial Risks
Primary risk |
Details | Mitigation |
| Default or credit | HCLTechs credit risk is concentrated in cash and bank balances, intercorporate deposits, customer receivables, finance lease receivables, investment securities and derivative instruments. All financial instruments mentioned above carry a risk of nonpezormance by counterpa_ies. | • During the pre-contracting stage of the sales cycle, HCLTech assesses the clients credit rating and financial reliability when investments or extended payment terms are involved. |
| • In the post-contracting stage, we continuously monitor our clients resilience by tracking and analyzing their financial reliability, financial pezormance, published credit ratings, economic trends, historical debts and customer receivables. This continuous monitoring process significantly helps mitigate credit risks for the company. Also, on time-to-time basis, company makes a po_folio for AR sales which includes mix of low rating and high rating clients. | ||
| Currency | HCLTech generates most of its revenue from clients outside of India and receives payments primarily in foreign currencies. The companys clients are primarily corporations based in the US, Europe and other geos and its | • HCLTech uses foreign exchange forward contracts and a combination of options to mitigate the risk of foreign currency fluctuations on its net receivables/ payables and forecasted transactions in ce_ain currencies. |
| receivables are concentrated here. Similarly, as HCLTech has delivery teams based in various countries, most of its costs are also denominated in foreign currencies. This situation puts HCLTech at risk of economic loss due to changes in exchange rates. | • The companys Board establishes prudent governing policies and processes that determine the duration of hedges, the percentage of risk to be covered and the counterpa_y risk to be assumed. | |
| Acquisition and integration | HCLTech makes strategic acquisitions on an ongoing basis. The success of these acquisitions hinges on effective integration and synergy realization. Internal factors, as well as external factors beyond our control, can also play a role. These factors may include the risk of impairing goodwill, failed synergies and other intangibles if integration is not managed effectively. Additionally, a lack of integration process can limit the ability to capture synergy benefits. | • Our governance program includes a robust mechanism to ensure regular reviews at multiple stages, staffing from the deal stage to integration, with pa_icipation from Line of Business leadership to Executive Management to the Board of Directors, to address issues effectively. |
| • HCLTechs robust integration and pezormance management framework enables the acquired businesses and HCLTech to achieve the acquisition objectives. Our Integration and Pezormance Management Office (IPMO) manages the integration process and ensures value creation. The Company has implemented a robust Post Acquisition Risk Assessment (PARA) program to assess and manage the risks of acquired entities. | ||
| Tax | HCLTech is subject to taxes in several jurisdictions worldwide and benefits from tax advantages in India and other countries. Changes to tax laws in India and other countries where HCLTech has a significant presence could impact the companys effective tax rate. | • HCLTech employs specialized tax teams that keep abreast of the latest tax developments in different countries, seek advice and suppo_ from external professional firms/consultants/lawyers and implement appropriate tax planning strategies based on changes in tax laws. |
| As HCLTech operates in multiple jurisdictions, transfer pricing arrangements among legal entities in these regions are subject to review by various tax authorities. | • To mitigate tax risks associated with transfer pricing, we have established advance pricing agreements in several countries and periodically review them with external consultants. | |
| Talent management and development | Managing talent and meeting the ever- increasing demand for talent poses a significant ongoing risk to HCLTech. An inability to meet resource demands in a timely manner could hinder top- line growth and limit organizational scale. Acute sho_ages and sustained wage inflation — pa_icularly in AI, cybersecurity and cloud — continue to challenge delivery resilience, margin stability and long-term competitive positioning. Fu_hermore, the risk of higher a_rition rates could equally affect delivery capability and growth plans. Additionally, legislative changes restricting work visa availability and deglobalization could have a fu_her impact. | • HCLTech has developed a robust process for hiring and making talent productive worldwide. Our comprehensive training strategy is designed to meet the growing needs and goals of all employees, encompassing professional, technical, niche skills, functional and leadership development. This approach is crucial for mitigating the risk of an unprepared leadership pipeline due to insufficient development and succession planning. |
| • We have implemented various initiatives to a_ract, engage and retain a stable, content and diverse multi-generational employee pool. | ||
| • To mitigate the potential effects of legislative actions, we have thoughtfully reduced our reliance on work visas by recruiting more local talent. This approach has led to one of the industrys highest local talent ratios. Fu_hermore, leveraging nearshore centers and focusing on onshore delivery has minimized our dependency on work visas. | ||
| Service delivery commitments | HCLTech recognizes the risk of failing to comply with terms and conditions, including meeting contractual commitments and service level agreements (SLAs) with its clients. This is considered a significant enterprise risk, emphasizing the need to effectively identify, monitor and repo_ on SLAs to relevant stakeholders. The COVID-19 pandemic, geopolitical dynamics, various conflicts and related events have highlighted the disruptions resulting from supply- side sho_ages and logistics-capacity constraints. Moreover, energy volatility, while indirect in nature, carry material consequences for cloud infrastructure, data centers, network operations and hardware-dependent programs. | • HCLTech employs an integrated business planning and execution process in which the sales and delivery teams regularly engage with clients to ensure seamless execution of engagements within SLAs. The company has a robust cadence mechanism, CREST, with extensive leadership pa_icipation to identify and address any issues ahead of time. We also use account customer satisfaction (ACSAT) at an account level and project customer satisfaction (PCSAT) at the project level to mitigate the risk of failure to meet service delivery commitments. |
| • We have implemented a robust vendor risk management framework to minimize the potential business impact to us and our clients arising from breaches and liabilities that may occur when leveraging third or fou_h pa_ies (vendors, suppliers, contractors, or service providers). | ||
| Cost management | HCLTech recognizes effective cost management as a crucial aspect of our operations, pa_icularly during periods of higher inflation. Poor budget planning, inaccurate cost estimation and external factors such as rising costs of talent and other resources can all contribute to the risk of cost overruns. | • HCLTechs control processes include regular benchmarking and delivery model optimization to maintain cost competitiveness and improve operational efficiencies. We also have a seamless view of demand and supply to ensure any genuine cost increases due to external factors are passed on to clients through adjustments in pricing structure. |
| Internal controls and processes | Lack of processes or poorly designed processes and controls in HCLTech can lead to operational inefficiency and impact business. | • HCLTech maintains a comprehensive array of robust internal frameworks and processes, which are subject to extensive monitoring to assess their efficacy. In addition, we also conduct regular audits to ensure both the quality of our processes and compliance with the required standards. |
| Operational agility | HCLTech faces a fundamental risk if it is not operationally agile. This means it may not be able to respond and adapt to changing market conditions or meet various stakeholder preferences, including clients, employees and the community. Slow adoption of AI enabled processes and operating model transformation may fu_her weaken competitiveness. | • HCLTech has established strong internal processes and an efficient operating model to ensure resilience and sustained operational agility. Our Ideapreneurship led culture empowers leaders and managers to respond swiftly to evolving market conditions while remaining aligned with our strategic priorities. To address risks arising from delayed AI adoption, we have been systematically embedding AI enabled processes and operating model enhancements across the organization, suppo_ed by a well trained workforce. This disciplined approach enables faster execution, improved efficiency and sustained competitiveness while protecting financial pezormance and brand equity. |
| This lack of agility could result in significant financial losses and negatively impact the companys brand. | ||
| Ecosystem | Todays business world is ecosystem- driven. HCLTech works with its ecosystem pa_ners to drive innovation, build new offerings and co-innovate to solve client challenges. Services and solutions provided in conjunction with ecosystem pa_ners contribute a sizable po_ion of HCLTechs revenue. Failing to build and manage relevant ecosystem pa_nerships may impact a_racting and catering to Global 2000, equivalent and emerging enterprises. | • HCLTech has excelled in creating and managing ecosystem pa_nerships for decades. We have a dedicated team that sees this as a business oppo_unity. |
| • HCLTech maintains good relationships with current ecosystem pa_ners and, through a systematic approach, identifies and forges pa_nerships with emerging players to stay relevant. | ||
| • HCLTech has established a strong, pa_ner-centric AI ecosystem, collaborating with industry leaders to accelerate enterprise AI adoption. | ||
| • HCLTech, with its vast ecosystem of pa_ners, provides its clients the flexibility to choose from multiple options. For example, HCLTech has pa_nerships with multiple hyperscalers, OEMs and AI leaders like OpenAI, NVIDIA and more. |
Consolidated Results
This part of the Management Discussion and Analysis refers to the consolidated financial statements of HCL (the "Company" or the "Parent Company") and its subsidiaries referred to as the "Group". The discussion should be read in conjunction with the financial statements and related notes to the consolidated accounts of HCL for the year ended 31 March 2026, prepared in accordance with the Indian Accounting Standard (referred to as "Ind AS"), prescribed under Section 133 of the Companies Act, 2013, and read with the Companies (Indian Accounting Standard) rules as amended from time to time.
Pezormance Trends
Revenue (_ Crores)
Revenue has increased from _85,651 crores in FY22 to _130,144 crores in FY26, with a compounded annual growth rate (CAGR) of 11.0% over the last four years.
Net wo_h (_ Crores)
The Net wo_h has increased from _62,006 crores in FY22 to _75,197 crores in FY26. The Company has paid _57,950 crores as dividend over last four years. Growth in net-wo_h is after considering the effect of dividend payouts in respective years.
Profit after tax (_ Crores)
Profit after tax has increased from _13,523 crores in FY22 to _17,371 crores in FY26, with a CAGR of 6.5% over the last four years. Profit after tax for FY26 has reduced by _640 crores (net of tax) due to one-time restructuring cost.
Earning per share (_)
Basic earnings per share has increased from _49.77 in FY22 to _64.12 in FY26, with a CAGR of 6.5% over the last four years. EPS for FY26 has reduced by _2.36 (net of tax) due to one-time restructuring cost.
Financial Pezormance
Results of operations (Consolidated):
| Year ended | |||||
| 31 March 2026 | 31 March 2025 | ||||
Pa_iculars |
Amount | % Revenue | Amount | % Revenue | % Change |
| Revenue from operations | 130,144 | 100.0% | 117,055 | 100.0% | 11.2% |
| Other income | 1,530 | 1.2% | 2,485 | 2.1% | |
Total income |
131,674 | 101.2% | 119,540 | 102.1% | 10.2% |
Expenses |
|||||
| Purchase of stock-in-trade | 2,715 | 2.1% | 1,976 | 1.7% | |
| Changes in inventories of stock-in-trade | (106) | (0.1)% | 52 | 0.0% | |
| Employee benefits expense | 74,143 | 57.0% | 66,755 | 57.0% | |
| Outsourcing costs | 18,422 | 14.2% | 15,162 | 13.0% | |
| Finance costs | 869 | 0.7% | 644 | 0.6% | |
| Depreciation and amo_ization expense | 4,355 | 3.3% | 4,084 | 3.5% | |
| Other expenses | 8,218 | 6.3% | 7,606 | 6.5% | |
Total expenses |
108,616 | 83.5% | 96,279 | 82.3% | 12.8% |
Profit before exceptional item and tax |
23,058 | 17.7% | 23,261 | 19.9% | (0.9)% |
Exceptional item |
|||||
| One-time impact of New Labour | |||||
| 956 | 0.7% | - | 0.0% | ||
| Codes | |||||
Profit before tax |
22,102 | 17.0% | 23,261 | 19.9% | (5.0)% |
Tax expense |
|||||
| Current tax | 5,105 | 3.9% | 5,161 | 4.4% | |
| Deferred tax charge | 345 | 0.3% | 701 | 0.6% | |
Total tax expense |
5,450 | 4.2% | 5,862 | 5.0% | (7.0)% |
Profit after tax |
16,652 | 12.8% | 17,399 | 14.9% | (4.3)% |
| Non- controlling interest | (10) | 0.0% | (9) | 0.0% | |
Profit for the year |
16,642 | 12.8% | 17,390 | 14.9% | (4.3)% |
Income
Revenue from operations
Revenue from operations in the year ended 31 March 2026 increased by 11.2% to _130,144 crores from _117,055 crores in the year ended 31 March 2025. The increase is driven by broad based pezormance across business segments as our clients across ve_icals and geographies reaffirm their confidence in our Digital and AI offerings along with strong deal wins in FY25 and continued momentum in FY26. The Group saw significant demand for its services. The increase is also accentuated by depreciation of INR against major foreign currencies.
Segment wise breakup of Revenue
The following table sets fo_h the revenue generated from each of our business segments and their respective percentage of our total revenue for the year:
| Year ended | |||||
| 31 March 2026 | 31 March 2025 | ||||
Segment |
Amount | % of total | Amount | % of total | % Change |
| IT and Business Services | 96,095 | 73.8% | 86,438 | 73.8% | 11.2% |
| Engineering and R&D services | 22,063 | 17.0% | 18,960 | 16.2% | 16.4% |
| HCLSoftware | 12,397 | 9.5% | 12,049 | 10.3% | 2.9% |
| Inter-segment* | (411) | (0.3)% | (392) | (0.3)% | 4.8% |
Total Revenue |
130,144 | 100.0% | 117,055 | 100.0% | 11.2% |
*Inter segment revenue primarily relates to services sourced internally from one segment to other segments for providing services to end customers.
Geography wise breakup of Revenue
The Group also reviews its business on a geographic basis. The following table classifies total revenue by geographic areas:
| Year ended | |||||
| 31 March 2026 | 31 March 2025 | ||||
Geographical Mix |
Amount | % of total | Amount | % of total | % Change |
| United States of America (USA) | 72,206 | 55.5% | 67,987 | 58.1% | 6.2% |
| Europe | 36,574 | 28.1% | 31,240 | 26.7% | 17.1% |
| India* | 3,941 | 3.0% | 3,667 | 3.1% | 7.5% |
| Rest of the world | 17,423 | 13.4% | 14,161 | 12.1% | 23.0% |
Total Revenue |
130,144 | 100.0% | 117,055 | 100.0% | 11.2% |
*Includes revenue billed to India based captive of global customers.
Other Income
The details of Other Income are as follows:
| Year ended | |||
Other Income |
31 March 2026 | 31 March 2025 | % Change |
| Interest income | 1,542 | 1,567 | |
| Income on mutual funds | 170 | 200 | |
| Exchange differences (net) | (241) | 86 | |
| Gain on divestment of subsidiaries | - | 574 | |
| Others | 59 | 58 | |
Total |
1,530 | 2,485 | (38.4)% |
Other income decreased by 38.4% to _1,530 crores for the year ended 31 March 2026, compared to _2,485 crores in the previous year. This is due to foreign exchange loss of _241 crores incurred primarily due to mark-to-market loss on derivative contracts on account of depreciation of INR against major foreign currencies, as against gain in previous year and one-time gain of _574 crores from divestment of subsidiaries recorded in the previous year.
Expenses
Employee benefits expense
Employee benefit expenses include salaries that have fixed and variable components, and contributions to retirement and pension plans. It also includes expenses incurred on staff welfare.
| Year ended | |||||
| 31 March 2026 | 31 March 2025 | ||||
Pa_iculars |
Amount | % Revenue | Amount | % Revenue | % Change |
| Salaries, wages and bonus | 64,721 | 49.7% | 58,178 | 49.7% | 11.2% |
| Contribution to fund and other employee benefits | 8,654 | 6.6% | 8,094 | 6.9% | 6.9% |
| Share based payments to employees | 478 | 0.4% | 218 | 0.2% | 119.3% |
| Staff welfare expenses | 290 | 0.2% | 265 | 0.2% | 9.4% |
Total |
74,143 | 56.9% | 66,755 | 57.0% | 11.1% |
Employee benefit expense has increased by 11.1% to _74,143 crores in the year ended 31 March 2026 from _66,755 crores in the year ended 31 March 2025. The increase is primarily due to one-time restructuring cost of _850 crores, increase in share based payments expense to employees and depreciation of INR against major foreign currencies.
Outsourcing expenses
Outsourcing expense includes outsourcing of several client-related activities such as hosting services, facilities management, disaster recovery, maintenance, and break fix services, and hiring of third-pa_y consultants from time to time to supplement the in-house teams.
Outsourcing expenses as a percentage of revenue has increased to 14.2% in FY26 from 13.0% in FY25. This increase in the current year is primarily due to increase in normal business operations and depreciation of INR against major foreign currencies.
Finance costs
Finance costs includes interest on loans from banks, senior notes, lease liabilities, direct taxes, other interest cost and bank charges.
Finance costs increased by 34.9% to _869 crores in the year ended 31 March 2026 from _644 crores in the year ended 31 March 2025. This increase is primarily on account of interest cost on direct taxes and lease liabilities.
Depreciation and amo_ization expense
Depreciation and amo_ization expense increased by 6.6% to _4,355 crores in the year ended 31 March 2026 from _4,084 crores in the year ended 31 March 2025. The increase is primarily a_ributable to higher amo_ization expense of _159 crores arising from full year impact of previous year acquisitions of customer related intangibles, along with incremental depreciation on right-of-use assets of _179 crores .
Other expenses
| Year ended | |||||
| 31 March 2026 | 31 March 2025 | ||||
Pa_iculars |
Amount | % Revenue | Amount | % Revenue | % Change |
| Travel and conveyance | 1,438 | 1.1% | 1,538 | 1.3% | |
| Software subscription fee | 1,414 | 1.1% | 1,269 | 1.1% | |
| Repairs and maintenance | 840 | 0.6% | 764 | 0.7% | |
| Legal and professional charges | 808 | 0.6% | 715 | 0.6% | |
| Communication costs | 681 | 0.5% | 583 | 0.5% | |
| Recruitment, training and development | 479 | 0.4% | 350 | 0.3% | |
| Power and fuel | 355 | 0.3% | 355 | 0.3% | |
| Expenditure toward corporate social responsibility activities | 305 | 0.2% | 282 | 0.2% | |
| Rates and taxes | 222 | 0.2% | 179 | 0.2% | |
| Rent | 110 | 0.1% | 98 | 0.1% | |
| Provision for doubtful debts/bad debts wri_en off (net) | 107 | 0.1% | 15 | 0.0% | |
| Insurance | 106 | 0.1% | 122 | 0.1% | |
| Others | 1,353 | 1.0% | 1,336 | 1.1% | |
Total |
8,218 | 6.3% | 7,606 | 6.5% | 8.0% |
Other expenses as a percentage of revenue has decreased to 6.3% in FY26 from 6.5% in FY25.
Tax expenses
Tax expenses comprises current tax and deferred tax.
| Year ended | ||
Pa_iculars |
31 March 2026 | 31 March 2025 |
| Profit before tax | 23,058 | 23,261 |
| Total tax expense | 5,450 | 5,862 |
Effective tax rate |
23.6% | 25.2% |
Tax expenses include current tax and deferred tax expenses. Decrease in tax expense for the year ended 31 March 2026 is primarily due to sefilement of ce_ain prior years tax positions in the current year. [for details refer to note no 3.25 to the consolidated financial statement]
Financial position
| As at | ||
Pa_iculars |
31 March 2026 | 31 March 2025 |
Assets |
||
| (a) Prope_y, plant and equipment | 4,657 | 4,501 |
| (b) Capital work in progress | 60 | 59 |
| (c) Right-of-use assets | 3,592 | 3,016 |
| (d) Goodwill | 23,888 | 21,756 |
| (e) Other intangible assets | 5,242 | 6,899 |
| (f) Other non-current assets | 8,277 | 7,204 |
| (g) Current assets | 70,542 | 62,109 |
Total assets |
116,258 | 105,544 |
Equity |
||
| (a) Equity share capital | 543 | 543 |
| (b) Other equity | 74,654 | 69,130 |
Total equity |
75,197 | 69,673 |
Liabilities |
||
| (a) Non-current liabilities | 9,235 | 7,832 |
| (b) Current liabilities | 31,826 | 28,039 |
Total equity and liabilities |
116,258 | 105,544 |
Other equity comprises other equity a_ributable to shareholders of the Group and non-controlling interest.
Prope_y, plant and equipment
Prope_y, plant and equipment net of depreciation, increased by _156 crores to _4,657 crores as of 31 March 2026 from _4,501 crores as of 31 March 2025.
Right-of- use assets
Right-of-use assets net of depreciation, increased by _576 crores to _3,592 crores as of 31 March 2026 from _3,016 crores as of 31 March 2025.
Goodwill and intangible assets
Goodwill increased by _2,132 crores to _23,888 crores as of 31 March 2026 from _21,756 crores as of 31 March 2025. The increase is primarily due to acquisitions through business combination of _118 crores and currency translation. [For details refer to note no 3.2 to the consolidated financial statement].
Intangible assets decreased by _1,657 crores to _5,242 crores as of 31 March 2026 from _6,899 crores as of 31 March 2025. The decrease is primarily due to amo_ization of _ 2,043 crores during the year pa_ly offset by acquisitions through business combination of _59 crores. [For details refer to note no 3.3 to the consolidated financial statement].
Treasury investments
The guiding principles of the Groups treasury investments are safety, liquidity and return. The Group has efficiently managed its surplus funds through careful treasury operations.
The Group deploys its surplus funds in fixed deposits with banks, deposits with corporate and financial institutions and investments in debt mutual funds and debt securities, with a limit on investments with any individual bank/fund.
Breakup of treasury investments is given below
| As at | ||
Pa_iculars |
31 March 2026 | 31 March 2025 |
| Debt mutual funds | 3,229 | 3,164 |
| Debt securities | 3,731 | 4,309 |
| Deposits with banks | 21,303 | 16,561 |
| Deposits with corporation and financial institution | 1,066 | 1,561 |
Total |
29,329 | 25,595 |
Current and other non-current assets excluding treasury investments
"Other non-current assets" comprises deferred tax assets (net), and financial and other assets.
"Current assets" comprises inventories, tax assets(net), and financial and other assets.
| As at | ||
Pa_iculars |
31 March 2026 | 31 March 2025 |
| Other non-current assets | 8,277 | 7,204 |
| Current assets | 70,542 | 62,109 |
Total |
78,819 | 69,313 |
| Less: Treasury investments | 29,329 | 25,595 |
Total |
49,490 | 43,718 |
Current and other non-current assets, excluding treasury investments increased by _5,772 crores to _49,490 crores as of 31 March 2026 from _43,718 crores as of 31 March 2025. This increase is primarily due to increase in trade receivables by _5,278 crores.
Shareholders fund
The equity a_ributable to shareholders of the Group increased by _5,510 crores to _75,165 crores as of 31 March 2026 from _69,655 crores as of 31 March 2025. The increase is primarily due to profit during the year by _16,642 crores ne_ed off with payment of dividend by _14,621 crores.
Borrowings
| As at | ||
Pa_iculars |
31 March 2026 | 31 March 2025 |
| Long-term borrowings | ||
| - From banks | 89 | 137 |
| - From senior notes | - | 2,151 |
| Sho_-term loan from banks | - | 3 |
| Bank overdraft | 70 | - |
Total |
159 | 2,291 |
Borrowings decreased by _2,132 crores to _159 crores as of 31 March 2026 from _2,291 crores as of 31 March 2025, primarily due to repayment of outstanding senior notes. This was pa_ially offset by bank overdrafts availed for working capital management.
Other non-current and current liabilities
"Non-current liabilities" comprises provisions, deferred tax liabilities (net), financial and other liabilities. "Current liabilities" comprises provisions, tax liabilities (net), and financial and other liabilities.
| As at | ||
Pa_iculars |
31 March 2026 | 31 March 2025 |
| Non-current liabilities | 9,235 | 7,832 |
| Current liabilities | 31,826 | 28,039 |
Total |
41,061 | 35,871 |
| Less : Borrowings | 159 | 2,291 |
Total |
40,902 | 33,580 |
Current and non-current liabilities, excluding borrowings, increased by _7,322 crores to _40,902 crores as of 31 March 2026 from _33,580 crores as of 31 March 2025. This is largely due to increase in Trade payables of _1,481 crores, unrealized loss on derivative financial instruments of _1,695 crores, lease liabilities of _1,071 crores, accrued salaries and benefits of _1,017 crores and current tax liabilities of _1,047 crores.
Cash flows
A summary of the cash flows statement is given below:
| Year ended | ||
Pa_iculars |
31 March 2026 | 31 March 2025 |
| Net cash flows from operating activities | 19,975 | 22,261 |
| Net cash flows used in investing activities | (1,473) | (4,914) |
| Net Cash flows used in financing activities | (19,369) | (18,561) |
| Net decrease in cash and cash equivalents | (867) | (1,214) |
| Effect of exchange differences on cash and cash equivalents held in foreign currency | 817 | 18 |
| Cash and cash equivalents at the beginning of the year | 8,245 | 9,441 |
Cash and cash equivalents at the end of the year |
8,195 | 8,245 |
Net Cash flows from operating activities
Net cash generated from operating activities is _19,975 crores during the year ended 31 March 2026, consisting of profit before tax of _22,102 crores, adjusted for: non-cash and non-operating items which are primarily depreciation and amo_ization of _4,355 crores, and interest income of _(1,542) crores; cash used in net working capital of _1,522 crores which is primarily driven by movement in trade receivables and cash used to pay taxes (net of refund), which is _4,076 crores.
Net cash generated from operating activities is _22,261 crores during the year ended 31 March 2025, consisting of profit before tax of _23,261 crores, adjusted for: non-cash and non-operating items which are primarily depreciation and amo_ization of _4,084 crores, and interest income of _(1,567) crores; cash generated from net working capital of _1,010 crores which is primarily driven by movement in Other financial liabilities, contract liabilities, provisions and other liabilities and cash used to pay taxes (net of refund), which is _4,243 crores.
Net Cash flows used in investing activities
Net cash used in investing activities is _1,473 crores for the year ended 31 March 2026. This is primarily due to net amount of placement of bank deposits of _2,186 crores, net amount of purchase and sale of prope_y, plant and equipment and intangibles of _1,399 crores, payments for business acquisitions (net of cash acquired) of _159 crores, pa_ially offset with net amount of interest received of _1,430 crores, net proceeds from sale/maturity of investments in securities of _684 crores and net proceeds from deposits with body corporate of _495 crores. Net cash used in investing activities is _4,914 crores for the year ended 31 March 2025. This is primarily due to net amount of placement of bank deposits of _2,820 crores, payments for business acquisitions (net of cash acquired) of _1,982 crores, net amount of purchase and sale of prope_y, plant and equipment and intangibles of _1,083 crores and placement of deposits with body corporate of _482 crores, pa_ially offset with net amount of interest received of _1,322 crores and Divestment in subsidiaries of _687 crores.
Net Cash flows used in financing activities
Net cash used in financing activities is _19,369 crores for the year ended 31 March 2026, primarily comprising payment of dividends of _14,618 crores, net payment of borrowings _2,308 crores, payment of lease liabilities including interest of _1,685 crores and acquisition of treasury shares of _711 crores.
Net cash used in financing activities is _18,561 crores for the year ended 31 March 2025, primarily comprising payment of dividends of _16,250 crores, payment of lease liabilities including interest of _1,453 crores, acquisition of treasury shares of _676 crores and net payment of borrowings _81 crores.
Key financial ratios
| Year ended | ||||||
Ratio |
Numerator | Denominator | Units | 31 March 2026 | 31 March 2025 | % Change |
| Operating profit ratio | Revenue from operations less all operating expenses (refer note 1 below) | Revenue from operations | % | 17.2 | 18.3 | (6.0)% |
| Net profit ratio | Profit for the year | Revenue from operations | % | 12.8 | 14.9 | (14.1)% |
| Return on net wo_h ratio | Profit after tax | Average total equity | % | 23.0 | 25.2 | (8.7)% |
| Current ratio | Current assets | Current liabilities | Times | 2.2 | 2.2 | 0.0% |
| Trade receivable turnover ratio | Revenue from operations | Average trade receivables | Times | 4.4 | 4.4 | 0.0% |
| Inventory turnover ratio | Cost of good sold (refer note 2 below) | Average inventories | Times | 14.0 | 12.8 | 9.4% |
| Interest coverage ratio | Earning before interest expenses and taxes | Interest expenses | Times | 27.2 | 38.8 | (29.9)% |
| Debt equity ratio | Total debt (refer note 3 below) | Total equity | Times | 0.1 | 0.1 | 0.0% |
Notes:
1) All operating expenses means total expenses minus finance costs.
2) Cost of goods sold includes purchase of stock in trade and change in inventories of stock-in-trade. 3) Total debts include lease liabilities.
4) Average is calculated based on simple average of opening and closing balances.
Operating profit ratio
Operating profit ratio decreased to 17.2% in FY26 from 18.3% in FY25 primarily due to one-time impact of restructuring cost of _850 crores in FY26. Excluding the impact, operating profit ratio for FY26 would have been 17.9%.
Net profit ratio
Net profit ratio decreased to 12.8% in FY26 from 14.9% in FY25 primarily due to one-time impact of New Labour codes of _719 crores (net of tax) and one-time restructuring cost of _640 crores (net of tax) in FY26. Excluding the impact, net profit ratio for FY26 would have been 13.8%.
Return on net wo_h
Return on net wo_h decreased to 23.0 % in FY26 from 25.2 % in FY25 primarily due to one-time impact of New Labour codes of _719 crores (net of tax) and one-time restructuring cost of _640 crores (net of tax) in FY26. Excluding the impact, of one-time impact of New Labour codes, the return on net wo_h for FY26 would have been 24.0%.
Interest coverage ratio
Interest coverage ratio has decreased to 27.2 times in FY26 from 38.8 times in FY25, primarily due to increase in interest cost and reduction in Earning before interest expense and taxes due to one-time impact of New Labour codes of _956 crores and one-time restructuring cost of _850 crores in FY26. Excluding the impact, of one-time impact of New Labour codes, the Interest coverage ratio for FY26 would have been 28.3 times.
Standalone Results
Standalone results of HCL exclude the pezormance of its subsidiaries.
The discussion in the paragraphs that follow should be read in conjunction with the financial statements and related notes to the standalone results of HCL Technologies Limited (herein referred to as "HCL" or "the Company") for the year ended 31 March 2026, prepared in accordance with the Indian Accounting Standard (referred to as "Ind AS"), prescribed under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standard) rules as amended from time to time.
Results of operations (Standalone)
| Year ended | |||||
| 31 March 2026 | 31 March 2025 | ||||
Pa_iculars |
Amount | % Revenue | Amount | % Revenue | % Change |
| Revenue from operations | 55,031 | 100.0% | 51,105 | 100.0% | 7.7% |
| Other income | 2,205 | 4.0% | 1,234 | 2.4% | |
Total income |
57,236 | 104.0% | 52,339 | 102.4% | 9.4% |
Expenses |
|||||
| Purchase of stock-in-trade | 127 | 0.2% | 133 | 0.3% | |
| Changes in inventories of stock-in-trade | - | 0.0% | 13 | 0.0% | |
| Employee benefits expense | 25,323 | 46.0% | 22,414 | 43.9% | |
| Outsourcing costs | 8,852 | 16.1% | 7,437 | 14.6% | |
| Finance costs | 243 | 0.4% | 156 | 0.3% | |
| Depreciation and amo_ization expense | 2,316 | 4.2% | 2,320 | 4.5% | |
| Other expenses | 3,670 | 6.7% | 3,392 | 6.6% | |
Total expenses |
40,531 | 73.7% | 35,865 | 70.2% | 13.0% |
Profit before exceptional item and tax |
16,705 | 30.4% | 16,474 | 32.2% | 1.4% |
Exceptional item |
|||||
| One-time impact of New Labour Codes | 948 | 1.7% | - | 0.0% | |
| One-time impact of Bilateral Advance Pricing Agreement (BAPA) | 5,733 | 10.4% | - | 0.0% | |
Profit before tax |
10,024 | 18.2% | 16,474 | 32.2% | (39.2)% |
Tax expense |
|||||
| Current tax | 2,743 | 5.0% | 3,344 | 6.5% | |
| Deferred tax charge | (346) | (0.6)% | 864 | 1.7% | |
Total tax expense |
2,397 | 4.4% | 4,208 | 8.2% | (43.0)% |
Profit after tax |
7,627 | 13.9% | 12,266 | 24.0% | (37.8)% |
Financial position (Standalone)
| As at | ||
Pa_iculars |
31 March 2026 | 31 March 2025 |
Assets |
||
| (a) Prope_y, plant and equipment | 2,931 | 2,931 |
| (b) Capital work in progress | 14 | 29 |
| (c) Right-of-use assets | 1,155 | 1,192 |
| (d) Goodwill | 7,226 | 7,215 |
| (e) Other intangible assets | 3,599 | 4,880 |
| (f) Other non-current assets | 5,849 | 7,221 |
| (g) Current assets | 26,200 | 29,035 |
Total assets |
46,974 | 52,503 |
Equity |
||
| (a) Equity share capital | 543 | 543 |
| (b) Other equity | 25,355 | 34,397 |
Total equity |
25,898 | 34,940 |
Liabilities |
||
| (a) Non-current liabilities | 3,477 | 3,528 |
| (b) Current liabilities | 17,599 | 14,035 |
Total equity and liabilities |
46,974 | 52,503 |
Current and other non-current assets excluding treasury investments
"Other non-current assets" comprises deferred tax assets (net), and financial and other assets. "Current assets" comprises inventories, tax assets(net), and financial and other assets.
| As at | ||
Pa_iculars |
31 March 2026 | 31 March 2025 |
| Other non-current assets | 5,849 | 7,221 |
| Current assets | 26,200 | 29,035 |
Total |
32,049 | 36,256 |
| Less: Treasury investments | 10,400 | 13,005 |
Total |
21,649 | 23,251 |
Current and other non – current assets, excluding treasury assets decreased by _1,602 crores to _21,649 crores as of 31 March 2026 from _23,251 crores as of 31 March 2025; the decrease is primarily on account of decrease in trade receivables by _1,524 crores.
Current and non-current liabilities
"Non-current liabilities" comprises provisions, deferred tax liabilities (net), and financial and other liabilities. "Current liabilities" comprises provisions, tax liabilities (net), and financial and other liabilities.
| As at | ||
Pa_iculars |
31 March 2026 | 31 March 2025 |
| Non-current liabilities | 3,477 | 3,528 |
| Current liabilities | 17,599 | 14,035 |
Total |
21,076 | 17,563 |
| Less: Borrowings | 10 | 26 |
Total |
21,066 | 17,537 |
Current and non-current liabilities, excluding borrowings, increased by _3,529 crores to _21,066 crores as of 31 March 2026 from _17,537 crores as of 31 March 2025, the increase is primarily on account of higher trade payables of _5,246 crores offset with decrease in other liabilities.
Cash flows (Standalone)
A summary of the cash flows statement is given below
| Year ended | ||
Pa_iculars |
31 March 2026 | 31 March 2025 |
| Net cash flows from operating activities | 12,129 | 15,991 |
| Net cash flows from investing activities | 3,520 | 993 |
| Net Cash flows used in financing activities | (15,681) | (17,253) |
| Net increase in cash and cash equivalents | (32) | (269) |
| Effect of exchange differences on cash and cash equivalents held in foreign currency | 41 | 24 |
| Cash and cash equivalents at the beginning of the year | 592 | 837 |
Cash and cash equivalents at the end of the year |
601 | 592 |
Net Cash flows from operating activities
Net cash generated from operating activities is _12,129 crores during the year ended 31 March 2026, consisting of profit before tax of _10,024 crores, adjusted for: non-cash and non-operating items which are primarily depreciation and amo_ization expenses of _2,316 crores, dividend income from subsidiaries of _(1,077) crores, interest income of _(861) crores, and cash generated from net working capital of _3,980 crores and payment of tax of _2,261 crores.
Net cash generated from operating activities is _15,991 crores during the year ended 31 March 2025, consisting of profit before tax of _16,474 crores, adjusted for: non-cash and non-operating items which are primarily depreciation and amo_ization expenses of _2,320 crores, interest income of _(867) crores; and cash generated from net working capital of _916 crores and payment of tax of _2,705 crores.
Net Cash flows from investing activities
Net cash flows from investing activities is _3,520 crores for the year ended 31 March 2026. This is primarily due to net proceed from bank deposits of _1,105 crores, dividend received from subsidiaries of _1,077 crores, purchase (net of maturity/ sale) of investment in securities of _968 crores, Interest received of _663 crores and deposits placed with body corporates of _624 crores, pa_ially ne_ed off with net purchase of prope_y, plant and equipment and intangibles of _715 crores.
Net cash flows from investing activities is _993 crores for the year ended 31 March 2025. This is primarily due to net proceed from bank deposits of _2,495 crores, Interest received of _801 crores and dividend received from subsidiaries of _109 crores, pa_ially ne_ed off with payments for business acquisitions (net of cash acquired) of _1,358 crores, net purchase of prope_y, plant and equipment and intangibles of _439 crores, purchase (net of maturity/sale) of investment in securities of _294 crores and deposits placed with body corporates of _221 crores.
Net Cash flows used in financing activities
Net cash used in financing activities is _15,681 crores for the year ended 31 March 2026, primarily comprising payment of dividends of _14,618 crores, acquisition of treasury shares of _711 crores and payment of lease liabilities including interest of _334 crores.
Net cash used in financing activities is _17,253 crores for the year ended 31 March 2025, primarily comprising payment of dividends of _16,250 crores, acquisition of treasury shares of _676 crores and payment of lease liabilities including interest of _297 crores.
Key financial ratios (Standalone)
| Year ended | ||||||
Ratio |
Numerator | Denominator | Units | 31 March 2026 | 31 March 2025 | % Change |
| Operating profit ratio | Revenue from operations less all operating expenses (refer note 1 below) | Revenue from operations | % | 26.8 | 30.1 | (11.0)% |
| Net profit ratio | Profit for the year | Revenue from operations | % | 13.9 | 24.0 | (42.1)% |
| Return on net wo_h ratio | Profit after tax | Average total equity | % | 25.1 | 33.0 | (23.9)% |
| Current ratio | Current assets | Current liabilities | Times | 1.5 | 2.1 | (28.6)% |
| Trade receivable turnover ratio | Revenue from operations | Average trade receivables | Times | 3.9 | 3.7 | 5.4% |
| Inventory turnover ratio | Cost of good sold (refer note 2 below) | Average inventories | Times | 10.6 | 7.7 | 37.7% |
| Interest coverage ratio | Earning before interest expenses and taxes | Interest expenses | Times | 42.9 | 110.8 | (61.3)% |
| Debt equity ratio | Total debt (refer note 3 below) | Total equity | Times | 0.0 | 0.0 | 0.0% |
Notes:
1) All operating expenses means total expenses minus finance costs.
2) Cost of goods sold includes purchase of stock in trade and change in inventories of stock-in-trade. 3) Total debts include lease liabilities.
4) Average is calculated based on simple average of opening and closing balances.
Net profit ratio
Net profit ratio decreased to 13.9 % in FY26 from 24.0 % in FY25 primarily on account of exceptional items and consequential tax impact of _5,129 crores during the year. Excluding the impact, the net profit ratio for FY26 would have been 23.2%.
Return on net wo_h
Return on net wo_h decreased to 25.1 % in FY26 from 33.0 % in FY25 primarily on account of exceptional items and consequential tax impact of _5,129 crores during the year. Excluding the impact, return on net wo_h for FY26 would have been 41.9%.
Current ratio
Current ratio is declined to 1.5 times in FY26 from 2.1 times in FY25 due to increased current liabilities against decreased current assets as compared to the previous year.
Inventory turnover ratio
Inventory turnover Ratio has increased to 10.6 times in FY26 from 7.7 times in FY25 , mainly due to relatively reduction in cost of good sold as against reduction in average inventories compared to previous year.
Interest coverage ratio
Interest coverage ratio has declined to 42.9 times in FY26 from 110.8 times in FY25 , mainly due to increase in Interest costs and reduction in Earning before interest expense and taxes due to exceptional items during the year. Excluding the impact of exceptional items, the interest coverage ratio for FY26 would have been 70.9 times.
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