HCL Tech shares rose as much as 6% to an intraday high of Rs 1,139 on the BSE on Friday after the company announced a strategic partnership with a Europe-headquartered Fortune Global 50 firm.
Sources told The Economic Times that the Europe-headquartered Fortune Global 50 company is Mercedes-Benz. Under the agreement, HCLTech will manage the automaker's digital workplace and network operations. The contract was previously handled by Infosys, the sources added.
The deal is valued at $1.14 billion over its initial term and represents entirely new business for the company.
HCL Tech will establish an AI-driven operating model to transform and manage the customer's global digital workplace and enterprise networks under this partnership. The initial term of the agreement runs from July 2026 to December 2031 and can be extended by a further five years, the company said in a regulatory filing.
The deal comes weeks after HCL Tech announced a Rs 1,427 crore (around $150 million) investment in Sarvam AI to acquire a 10.46% stake in the Indian artificial intelligence startup. As part of the partnership, HCLTech will support Sarvam AI's research and development efforts focused on next-generation frontier AI agentic models, coding models and cybersecurity applications.
HCL Tech guidance
The company has guided for revenue growth of 1% to 4% year-on-year in constant currency terms, with services revenue expected to grow between 1.5% and 4.5%. EBIT margin is projected in the range of 17.5% to 18.5%.
HCL Tech Q4 snapshot
The company reported a 4.2% rise in consolidated net profit for the March quarter at Rs 4,488 crore, compared to Rs 4,307 crore in the same period last year.
Revenue from operations for Q4FY26 came in at Rs 33,981 crore, marking a 12% increase from Rs 30,246 crore recorded in the corresponding quarter of the previous financial year.
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On a sequential basis, revenue rose marginally by 0.3% from Rs 33,872 crore reported in Q3FY26. However, in constant currency terms, revenue declined 3.3% quarter-on-quarter and grew 2.4% year-on-year. Revenue in dollar terms stood at $3,682 million, down 2.9% sequentially but up 5.3% compared to last year.
As a result, the company missed its financial year 2026 revenue growth guidance. What was projected to be a growth between 4% to 4.5%, turned out to be 3.9% for the year.
Services revenue in constant currency slipped 0.1% quarter-on-quarter but increased 4.2% year-on-year. Revenue from advanced AI stood at $155 million during the quarter, reflecting a 6.1% sequential rise in constant currency.
HCL Tech share price is down 34% since the beginning of the year.
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