HCLTech shares surged 8.4% Tuesday after the Indian technology-services company reported stronger quarterly profitability, accelerating artificial-intelligence revenue and a rebound in new contract bookings.
The rally helped push India’s Nifty IT index up about 5.2%, its strongest session in more than 17 months, while the broader Nifty 50 gained approximately 1.6%.
HCLTech reported second-quarter fiscal-2027 revenue of 356.2 billion rupees, up 11.5% from a year earlier. Revenue increased 2.6% year over year in constant currency.
Net income rose 21.2% to 51.32 billion rupees, while EBIT margin reached 18.2%, improving by 71 basis points from a year earlier.
The company’s advanced-AI business provided one of the strongest growth signals.
Advanced AI revenue reached $219 million, rising 78% from a year earlier in constant-currency terms and 28.4% from the previous quarter. New deal wins totaled approximately $3.26 billion.
HCLTech maintained its fiscal-2027 forecast for companywide constant-currency revenue growth of 2.5% to 4%, with services revenue expected to grow between 3% and 4%. It continues to expect an EBIT margin between 17.5% and 18.5%.
The results arrive as the global IT-services industry confronts competing forces. Corporate customers are investing aggressively in artificial intelligence while remaining cautious about broader discretionary technology spending.
That makes HCLTech’s AI growth particularly important. Investors are looking for evidence that generative and agentic AI projects can develop into material revenue streams rather than simply replacing existing technology work.
Tuesday’s market reaction suggests investors viewed the combination of higher margins, stronger bookings and rapid AI revenue growth as evidence that HCLTech is navigating that transition better than feared.
The next test will be whether rising AI revenue can translate into stronger companywide growth while HCLTech maintains margins inside its current guidance range.
