In FY25, HCL Technologies showcased resilience and steady growth amidst a challenging global economy. Driven by robust performances in Engineering, R&D, and AI services, HCL reported consolidated revenue growth of 4.7%, reaching $13.84 billion. Operating margins expanded, and strategic AI integrations significantly boosted client engagements and internal efficiencies. The company’s forward guidance remains cautiously optimistic, projecting growth between 2% and 5% for FY26, amid global economic uncertainties.
Key Highlights
- Financial Performance:
- FY25 consolidated revenue: $13.84 billion (+4.7% YoY)
- Operating margin at 18.3% (+7 basis points YoY)
- Software revenue exceeded $1 billion, marking a 3.5% YoY growth
- Quarterly Breakdown (Q4 FY25):
- Revenue growth: 2.9% YoY; marginal sequential decline of 0.8%
- Software business showed strong sequential growth (+2.9%) despite seasonality
- Operating margin at 17.9%
- Business Segment Highlights:
- Engineering and R&D Services grew by 5.5%; bookings increased by 75%
- IT and Business Services up by 4.6%
- Telecom, Media & Entertainment vertical surged by 43.4%; Retail & CPG increased 10.7%
- AI Integration and Innovation:
- Delivered 500+ AI engagements for 400+ clients
- Launched four flagship AI offerings: AI Force, AI Hungary, AI Labs, and AI Engineering
- Significant client productivity gains through AI-powered solutions
- Geographical Performance:
- Americas: +5.3%; Rest of World: +4.7%; Europe: +3.5%
- Bookings and Pipeline:
- New bookings for FY25 totaled $9.4 billion, Q4 alone secured $3 billion
- Strong deal pipeline remains near historic highs, driven by AI and integrated solutions
- Employee and Talent Development:
- Employee base grew by net addition of 3,337 in FY25
- Exceeded AI upskilling target, training 106,000 employees
- Recognized with 26 external acknowledgments for talent programs
- Financial Strength and Returns:
- Operating cash flow at robust ₹25,183 crores
- Net cash position of ₹28,652 crores
- Dividend payout at 93.5% of net income, total dividend ₹80 per share
- Outlook and Guidance (FY26):
- Revenue growth guidance of 2%-5% in constant currency
- EBIT margin guidance at 18%-19%
- Continued focus on leveraging AI for operational efficiencies and client value creation
The Road Ahead
HCL Technologies is entering FY26 with a well-balanced portfolio, robust pipeline, and strategic investments in AI and engineering. The company plans to scale its AI-led offerings, deepen its presence in high-growth verticals, and expand global delivery capabilities. While macroeconomic uncertainties persist, HCL remains optimistic about harnessing generative AI and cloud transformation to unlock efficiencies, drive innovation, and deliver greater value to clients. The focus on talent, client-centric innovation, and global expansion positions HCL for sustained industry-leading performance in the evolving digital landscape.