HCLTech reported Q4 revenue of $3,498 million, reflecting a 2 percent year-on-year increase and a 1 percent quarter-on-quarter decline.
Full-year revenue of HCLTech stood at $13,840 million, up 4.3 percent.
The company recorded a net headcount addition of 2,665 in Q4, bringing total employees to 223,420; it added 1,805 freshers during the quarter. For the full fiscal year, HCLTech had a net headcount reduction of 4,061, impacted by a divestiture of 7,398 roles, though it hired 7,829 freshers. LTM attrition rose to 13.0 percent, up from 12.4 percent a year ago.
“HCLTech has delivered another year of robust growth with its future-ready portfolio. We also marked the 25th anniversary of HCLTech going public and achieved the distinction of delivering best-in-class TSR over the past decade,” Roshni Nadar Malhotra Chairperson HCLTech said.
HCLTech CEO C Vijayakumar emphasized emerging growth opportunities in generative AI and tech-driven cost optimization, despite short-term uncertainty. He flagged ongoing tariff-led disruptions, especially in retail and manufacturing, potentially spilling into other verticals.
HCLTech guided for 2–5 percent revenue growth in fiscal 2026. Despite sector-wide caution following Infosys’ weak forecast (flat to 3 percent revenue growth), analysts noted HCLTech’s guidance as the strongest among peers. Tata Consultancy Services also missed estimates, citing delays in discretionary project decisions, Reuters news report said.
HCLTech’s deal wins surged to $3 billion from $2.1 billion a year earlier. Four of seven business segments posted growth, with telecom and media seeing a sharp 24.3 percent rise. HCLTech shares ended 0.1 percent lower, while the broader NIFTY IT index closed down 0.57 percent.
Biswajit Maity, Sr Principal Analyst, Gartner, said: “HCLTech reported 1.2 percent revenue growth in Q4 (CC), reflecting muted growth amid global economic challenges. This is driven by cautious client spending across key geographies like North America and Europe. The decline in its products business and margin pressure were anticipated, given the slowdown in discretionary spending and ongoing global economic challenges.”
“Despite this, the company maintains a strong deal pipeline and continues to invest in AI and digital transformation to drive future growth. Its focus remains on delivering clear business outcomes, supported by contractual commitments that demonstrate execution confidence. By combining engineering expertise with adaptable cloud-based solutions and embedding sustainability into its offerings, HCLTech reinforces its role as a trusted IT services partner, helping clients navigate change and pursue long-term transformation goals,” Biswajit Maity said.
HCLTech’s performance in Q4 fiscal 2025 shows nuanced shifts compared to Q4 fiscal 2024, reflecting both progress and challenges across its segments, geographies, verticals, and client metrics.
In terms of segment-wise revenue contributions, the IT and Business Services segment slightly declined from 74.4 percent in Q4 FY24 to 73.3 percent in Q4 FY25, suggesting a modest contraction in this core area. However, the Engineering and R&D Services segment saw growth, increasing from 16.2 percent to 17.1 percent, indicating a greater focus and possibly higher demand in innovation-driven and technical service areas.
From a geographical perspective, the Americas continued to be HCLTech’s largest revenue contributor but saw a decline from 65.2 percent to 63.9 percent, which could be attributed to competitive pressures or macroeconomic factors in the region. In contrast, Europe experienced a slight rise from 28.9 percent to 29.2 percent, while the Rest of the World (ROW) saw a notable increase from 5.9 percent to 6.9 percent, possibly pointing to strategic diversification and better penetration in emerging markets.
Looking at verticals, Financial Services, while remaining a significant contributor, dipped from 21.6 percent to 21.1 percent, and Manufacturing saw a larger decline from 20.4 percent to 18.6 percent, potentially indicating softer demand or structural changes in those industries. Lifesciences & Healthcare also decreased from 16.3 percent to 14.7 percent, which may reflect shifting investment priorities.
Conversely, Telecommunications, Media, Publishing & Entertainment surged from 11.5 percent to 13.9 percent, and Technology and Services rose from 12.3 percent to 13.4 percent, signaling strong growth and digital transformation trends in these sectors. Retail & CPG edged up from 9.1 percent to 9.7 percent, while Public Services remained relatively stable, slightly reducing from 8.8 percent to 8.6 percent.
Client metrics reveal stability at the top end, with the number of $100M+ clients remaining constant at 22. However, there was an increase in $50M+ clients from 46 to 52, suggesting improved wallet share among large clients. The number of $20M+ clients was almost flat, moving from 137 to 138. Interestingly, $10M+ clients declined from 254 to 251, while $5M+ clients rose from 395 to 399, and $1M+ clients saw a slight reduction from 951 to 948. These trends indicate modest expansion in mid-tier clients, though there’s some churn or consolidation at the lower levels.
Overall, HCLTech’s Q4 FY25 performance shows resilience and targeted growth in specific areas like ER&D, certain verticals, and ROW markets, though there are signs of pressure in traditional segments and regions such as IT services in the Americas and some key industry verticals.
Baburajan Kizhakedath
