India-based IT service provider HCLTech has reported Q3 FY25 revenue of $3,533 million, up 2.5 percent QoQ and 3.5 percent YoY.
Digital revenue of HCLTech grew 6.3 percent YoY, contributing 38.5 percent of services revenue during the October-December quarter of 2024. Contract value of new deal wins stood at $2,095 million. HCLTech did not reveal the size of its artficial intelligence deals with customers.
The Noida/Delhi-based company has added 2,134 employees, including 2,014 freshers, bringing the total headcount to 220,755. LTM attrition rose to 13.2 percent from 12.8 percent in the same quarter last year. HCLTech has 206,517 tech employees at the end of December 2024.
Roshni Nadar Malhotra Chairperson HCLTech, said: “HCLTech is well positioned as AI-led transformation brings new opportunities for growth. We continue to deliver industry-leading performance with governance and sustainability at the core.”
For FY25, HCLTech expects revenue growth between 4.5-5 percent, services revenue growth in the same range, and an EBIT margin of 18-19 percent.
HCLTech CEO C Vijayakumar highlighted a solid performance with 3.8 percent QoQ growth in constant currency and an EBIT margin of 19.5 percent. New deal bookings reached $2.1 billion, driven by demand for digital and AI solutions.
Revenue by verticals: Financial Services (20.3 percent), Manufacturing (19.1 percent), Lifesciences & Healthcare (15.5 percent), Technology and Services (13.3 percent), Telecommunications, Media, Publishing & Entertainment (12.3 percent), Retail & CPG (10.6 percent), Public Services (8.9 percent). Revenue by geography: Americas (65.5 percent), Europe (28.2 percent), Rest of the World (6.3 percent).
Client distribution: $100M+ (22 clients), $50M+ (53 clients), $20M+ (136 clients), $10M+ (248 clients), $5M+ (398 clients), $1M+ (952 clients).
Biswajit Maity, Sr Principal Analyst, Gartner, said: Gartner remains confident in HCLTech’s ability to sustain growth, supported by a strong business pipeline and rising global IT investments. The company’s stable performance is driven by robust order bookings, large deal wins, and strengths in emerging technologies, digital transformation, and customer-focused solutions.
“North America is expected to lead growth in 2025, followed by Europe and other regions. With IT spending in India projected to grow 10-12 percent, global growth at 6-8 percent, and Generative AI projects advancing to production, 2025 holds significant potential. To sustain success, HCLTech must focus on service delivery, meet client expectations, and driving continuous improvement as some clients have expressed concerns,” Biswajit Maity said.
C Vijayakumar, CEO and Managing Director of HCLTech, said: “The growth is powered by broad based performance across business lines as our clients across verticals and geos reaffirm their confidence in our Digital and AI offerings. Our new deal bookings were healthy during the quarter at $2.1B with wins across services and software.”
“We are positioning ourselves for a future that is transformative, with AI empowering businesses and employees. We continue to see growing demand for our AI led propositions across services and software offerings,” C Vijayakumar said.
AI deals
HCLTech secured several notable AI and GenAI deal wins. A US-based global technology company partnered with HCLTech to develop Agentic AI personas, a multi-agent platform designed to enhance incident management processes, improve real-time update accuracy, and optimize change categorization, ultimately elevating customer experience.
A US-based financial services firm selected HCLTech to build a GenAI system powered by HCLTech AI Foundry, enabling AI-driven knowledge retrieval and enhancing customer advisory services.
A US-based biomedical company engaged HCLTech to design a reinforcement learning agent for optimizing medication delivery for Parkinson’s patients, aiming to improve patient stability and quality of life.
HCLTech was also chosen by a Japan-based camera OEM to create AI use cases and reinforcement learning models that provide personalized camera settings and GenAI-assisted photography enhancements.
A US-based global medical devices company partnered with HCLTech to develop an AI/ML-powered remote therapy solution incorporating speech and emotion analytics, computer vision, and NLP for improved patient convenience and reduced session times.
A Singapore-based subsidiary of a European financial services major selected HCLTech to establish a cognitive AI infrastructure for intelligent cyber resilience, sustainable data management, and business resiliency.
HCLTech will also develop medical safety systems for a US-based life sciences company using GenAI, expediting regulatory submissions and automating compliance data collection.
Additionally, a US-based pharmaceutical company partnered with HCLTech to maintain AI solutions and streamline LLMOps for enhanced patient safety and regulatory compliance.
An Australia-based financial services company engaged HCLTech to modernize legacy APIs with its GenAI platform AI Force, reducing technical debt and enabling AI application development on cloud-native technologies.
Rajani Baburajan
