HCLTech reported a total contract value (TCV) of $1,812 million in Q1FY26 from new deal wins, marking a 7.5 per cent year-on-year (YoY) decline from $1,960 million in Q1FY25. On a quarter-on-quarter (QoQ) basis, the decline is steeper at 39.5 per cent, with Q4FY25 having recorded $2,995 million in TCV.
The slowdown in new deal wins comes after the company closed FY25 with a strong total TCV of $9,268 million, supported by robust large deal activity in the final quarter of the previous fiscal.
HCLTech continues to win large-scale deals, including those in AI, healthcare, and telecom.
Commenting on the performance, CEO and MD C Vijayakumar said, “We had healthy revenue growth of 3.7 per cent YoY supported by good performance in our Services business. Our AI propositions are resonating well with our clients and have been augmented further by our partnership with OpenAI.”
AI-led deals take centre stage
The quarter saw a string of new wins with AI at the core. A global sports body chose HCLTech to power a GenAI commentary platform, while a Europe-based telecom major partnered with the firm for AI-driven IT operations. In total, HCLTech announced over a dozen GenAI and AI deals spanning sectors like aerospace, manufacturing, and consumer goods.
Chief Financial Officer Shiv Walia said, “AI has become integral to business growth of global enterprises. HCLTech’s capabilities and strategic partnerships ensure our AI-led solutions are practical, comprehensive and significant value creators to our clients.”
Robust pipeline, global traction
Despite softer TCV, HCLTech’s pipeline remains healthy. Major contracts during the quarter include a digital transformation deal with a leading US hospital chain and a network services mandate from a global telecom firm operating in over 100 countries. The company also expanded its relationship with a global payments major and a large US-based technology company.
Revenue rises over 8 per cent, but profit and margins take a hit
HCLTech reported consolidated revenue of ₹30,349 crore for the first quarter of FY26, marking a year-on-year growth of 8.2 per cent and a modest sequential growth of 0.3 per cent.
The company’s EBIT for the quarter came in at ₹4,942 crore, accounting for 16.3 per cent of the total revenue. This marks a 9.2 per cent decline sequentially, though it grew by 3.1 per cent compared to the same period last year.
Net income stood at ₹3,843 crore, down 10.8 per cent quarter-on-quarter and 9.7 per cent year-on-year, as higher costs and lower utilisation affected margins.