AI proposition, platform capabilities drive client demand for HCLTech in Q1FY26

IT services firm HCLTech reported its first quarter financial earnings for FY26 on Monday, announcing revenue of ₹30,349 crore, up by 8.2% on a yearly basis. The company’s operating margin came at 16.3%, impacted by lower utilization and additional Gen AI investments.

In the media round, company management reiterated that clients continue to invest in AI and generative AI, particularly in software and IT development services. Especially, the digital business sees several large deals due to the client AI proposition and platform capabilities supported by HCLTech’s offerings, such as AI Force, AI Foundry, and AI Labs.

Overall, the new deal wins for the quarter were pegged at $1,812 million. These technologies have emerged as critical components of nearly every deal, said CEO C Vijayakumar. “Our AI propositions are resonating well with our clients and have been augmented further by our partnership with OpenAI. Our pipeline continues to grow as the demand environment was stable during the quarter.”

Notably, in June, HCLTech announced a multi-year partnership with OpenAI to support the use of Generative Artificial Intelligence (GenAI) in enterprise environments. The collaboration will focus on integrating OpenAI’s models into HCLTech’s AI platforms and services.

The spokesperson also said that while generative AI is central to IT service strategy, agentic AI is gaining favour for operational efficiency and application modernisation programs. HCLTech is now investing in an AI-driven data lifecycle management platform.

HCLTech also spoke about its ongoing restructuring program includes optimising underutilised facilities, particularly outside India, and a ramp-down in talent. “We plan to execute a restructuring program on both the people and non-people side during the rest of the fiscal year. Doing this will provide structural agility to address market demand in the AI era,” Vijayakumar said.

HCLTech’s total headcount stands at 223,151, with a net reduction of 269 employees. This includes the addition of 1,984 freshers.