In its Q2 FY26 earnings, HCLTech reported that its advanced AI business crossed $100 million in quarterly revenue — a milestone that underlines the growing weight of AI in its services portfolio.This AI revenue now accounts for roughly 3% of its total revenue.
Key Highlights from Q2 FY26
Here are the major numbers and developments from the quarter:
| Metric | Value / Change |
|---|---|
| Total Revenue | ₹31,942 crore (~US$ 3,644 million) |
| YoY Growth (INR) | ~ 10.7 % |
| Constant Currency Growth (QoQ / YoY) | +2.4 % QoQ; +4.6 % YoY |
| EBIT / Margin | ₹5,550 crore (≈ 17.4 %) including restructuring costs |
| Net Profit | ₹4,235 crore (flat YoY) |
| New Bookings / TCV | $2,569 million (bookings) |
| Workforce & Productivity | Added 3,489 people; revenue per employee up ~1.8 % YoY |
In its investor release, the company emphasized that the $100M AI figure came from its Advanced AI segment — distinct from generic digital services.
Why This Milestone Matters
- AI is emerging as a core business pillar
The fact that HCLTech now recognizes and discloses separate AI revenue suggests it sees AI not just as a theme but as a business vertical. - Differentiation in a crowded IT space
In India’s competitive IT services industry, showing tangible AI revenue gives HCLTech an edge in pitching to customers seeking next-gen capabilities. - Healthy deal momentum
Deal wins remain strong (over $2.5B in TCV), and many new deals reportedly include AI components. Stocktwits+1 - Margin & profitability pressure
As AI workloads and deployment scale, the cost of talent, infrastructure, and R&D may weigh on margins; managing that balance will be key. - Investors & valuation implications
Markets tend to reward technology exposure; higher AI contribution could shift valuation multiples favorably if growth sustains.
Risks & Challenges Ahead
- Sustainability of growth: Crossing $100M is one thing; scaling year over year is another.
- Capital intensity: AI operations often require infrastructure (compute, data) and continuous investments.
- Competition: Global and domestic rivals are also stepping up their AI offerings, increasing pressure.
- Execution & delivery: Clients will expect robust, reliable solutions. Any failures or security issues could hurt credibility.
- Profit vs scale tradeoffs: Aggressive expansion might compress margins initially.
Outlook & Market Expectations
HCLTech has reaffirmed its FY26 guidance: 3–5 % revenue growth in CC, with services revenue growth targeted at 4–5 %, and margins in the 17–18 % band.
Analysts see the AI milestone as supportive of future growth and differentiation.
If the AI segment can continue to grow its share (say from 3 % to 5–7 % over coming quarters), HCLTech could meaningfully shift its portfolio mix toward higher value services.
