HCL Technologies shares declined by 3.55% to ₹1,304.70 at 9:16 am on Friday, placing the stock among the top losers on the Nifty 50 despite the company's strong financial performance. The stock movement comes as the company continues to demonstrate robust growth across key metrics, with the Advanced AI unit growing 62.1% year-on-year to $171 million in Q1 FY27. This remarkable growth comes as India's IT services market splits into two distinct segments - AI winners and traditional losers, with HCLTech clearly positioned in the former category.
HCL Technologies has shown consistent quarterly revenue growth, with the company reporting consolidated revenue of ₹34,579 crore for the quarter ending June 2026, up from ₹33,981 crore in the previous quarter. Net profit also increased to ₹4,626 crore in June 2026 compared to ₹4,490 crore in March 2026. Earnings per share (EPS) followed a similar trend, increasing to ₹17.09 in June 2026 from ₹16.59 in March 2026. The company's annual performance shows steady growth, with consolidated revenue reaching ₹130,144 crore in 2026, representing an 11.18% increase from ₹117,055 crore in 2025.
HCL Technologies Ltd has become the first Indian IT services company to establish a dedicated business unit targeting mid-market firms, according to reports from Mint. The new unit, called Neo.AI, will focus on companies with annual revenue of $1-5 billion, representing a significant departure from India's IT giants who traditionally serve Fortune 500 clients. This move follows a similar strategy by Accenture Plc, which announced its own small business group targeting mid-market companies with $300 million to $3 billion in revenue. As per Mint reports, the broad intent is to target small companies with small pockets of spending and deliver shared services using the AI Force platform, targeting the base of mid-tier IT services firms that rely on smaller companies for much of their business needs.
The new unit represents a strategic shift for India's third-largest IT services company, which ended last year with ₹14.66 billion in revenue and is expected to grow 1-4% in constant currency terms this fiscal. As reported by Mint, this diversification comes as the country's big five IT companies—Tata Consultancy Services Ltd, Infosys Ltd, HCLTech, Wipro Ltd and Tech Mahindra Ltd—have traditionally relied on Fortune 500 clients, with each drawing at least 20% of revenue from the 10 largest accounts. The goal is to get as many clients as possible to use HCLTech's software and AI platforms for much of their business needs, with the company looking to onboard multiple clients on one software platform that can be modified based on individual client needs. The move is expected to challenge established mid-market IT services companies including Coforge Ltd, Persistent Systems Ltd and Mphasis Ltd.
According to Mint reports, HCLTech plans to deliver approximately three-fifths of IT work through internally developed AI agents while the remainder will be managed by humans. The company aims to onboard multiple clients on a single software platform that can be modified based on individual client needs. Ashish Kumar Gupta, a company veteran with over two decades of experience, has been appointed as the global head of the New Business Incubation Group, while the unit has hired Aditya Chawla as an area sales director. The unit currently has at least 300 executives with sales rollout described as 'more-or-less complete'. As per Mint sources, the new unit will manage software development, maintenance and data analytics for mid-market clients through HCLTech's AI platform and IT offerings. The company is also leveraging Google Gemini Enterprise for enterprise AI transformation, with the new unit located in Santa Clara helping enterprises design, build and deploy AI-driven workflows.
HCLTech has announced a significant infrastructure expansion in Odisha, establishing a new Global Technology Centre in Bhubaneswar that will create 5,000 jobs while strengthening the state's ambitions to become a major hub for AI and digital technologies. According to details announced by the company and the Odisha government, the facility is expected to become operational by 2028 and will develop AI-led and digital technology solutions for global enterprises. The company has partnered with the Odisha government to develop the centre, which is expected to serve customers across global markets while creating a larger technology talent base within the state. Operations are scheduled to begin by 2028, with the company planning to strengthen the local technology ecosystem by working closely with educational institutions and other stakeholders.
