India’s HCLTech beats quarterly revenue view on banking, technology boost

BENGALURU: Indian software services exporter HCLTech reported a higher-than-expected third-quarter revenue on Monday on the back of performance in its banking and technology verticals.

Consolidated revenue increased 13.3% from a year earlier to 338.72 billion rupees ($3.8 billion) in the quarter ending December 31, beating analysts’ average expectation of 330.46 billion rupees, as per data compiled by LSEG.

For the fiscal year 2026, the company narrowed its revenue growth forecast to 4% to 4.5% from 3% to 5% previously, in line with expectations.

Firms in India’s $283-billion IT industry are expected to report another muted quarter as they grapple with tepid demandin the U.S. as clients hold off on non-essential tech spending  due to macroeconomic uncertainties and geopolitical turmoil.

Holiday-period shutdowns also impact earnings in the December quarter. Indian IT companies earn a significant share of their revenue from the United States.

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However, HCLTech typically does not face a year-end slump as licences in its products and platforms business come up for renewal during this period.

The IT firm’s profit for the quarter fell 11.2% to 40.76 billion rupees, missing analysts’ average estimate of 46.81billion rupees, as per LSEG estimates. The firm took a one-time hit of 9.56 billion rupees due to the impact of India’s new labour codes.

HCLTech said its AI revenue came in at $146 million, up from $100 million in the previous quarter, which was the first time it had shared the breakdown.

Revenue from the company’s banking and technology verticals grew by 8.1% and 14.4% respectively, while that from life sciences fell 2% during the quarter.

New deal bookings stood at $3 billion during the quarter, compared with $2.57 billion in the previous quarter and $2.09 billion in the year-ago period.

Shares of HCLTech closed 0.37% higher ahead of the results.

India’s largest software company Tata Consultancy Services also beat revenue estimates. Peers Infosys and Wipro, and Tech Mahindra will report

their numbers later this week.