India's HCLTech marginally misses second-quarter revenue estimates, narrows annual forecast

HCLTech, India’s third-largest IT services firm, slightly missed second-quarter revenue expectations as clients held back spending on traditional projects while AI disrupted older pricing models. On Monday, consolidated revenue rose 11.5% to 356.20 billion rupees ($3.72 billion), compared with an LSEG average forecast of 356.86 billion rupees. The company narrowed its annual growth outlook to 2.5%–4% from a previous 1%–4%, with most brokerages expecting it to hold. HCLTech’s annualised advanced AI revenue climbed to $219 million from $171 million. Net profit increased 21.2% to 51.32 billion rupees, operating margin rose to 18.2%, and quarterly deal wins were $3.26 billion, including a $1.14 billion Mercedes-Benz contract.