India's HCLTech beats first-quarter revenue estimates on financial services strength

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July 13, 2026 8:19 AM EDT

FILE PHOTO: An employee arrives for work at HCL Technologies headquarters in Noida, on the outskirts of New Delhi, India, August 28, 2023. REUTERS/Adnan Abidi/File Photo

BENGALURU, July 13 (Reuters) - Indian ‌software services ​exporter ​HCLTech beat analysts' expectations for first-quarter revenue on Monday, buoyed by strength in its financial services, ‌technology and retail segments.

The country's third-largest IT services firm ⁠posted a 13.94% year-on-year rise in consolidated revenue to 345.79 billion ‌rupees ($3.62 billion) during the April-June quarter. ‌Analysts, on average, estimated revenue of 343.5 billion rupees, according to data compiled by LSEG.

A weaker rupee also boosted ​revenue for IT firms as they bill clients in foreign currencies. The local currency depreciated by around 9% ⁠against the U.S. dollar in the June quarter.

Revenue in constant currency, or stripping ​out exchange-rate effects, rose 2.6%.

Analysts have lowered their expectations for India's $315-billion IT industry as global clients ​cut non-essential tech spending and fears ‌mount that advanced AI tools could disrupt software companies' business models.

HCLTech's quarterly net profit rose ⁠20.3% to 46.24 billion rupees, while analysts estimated 45.12 billion rupees.

The company's new bookings stood at $2.4 billion in the quarter, compared with $1.9 ⁠billion in the previous three-month period and $1.8 billion a year ago.

Its advanced ​AI revenue, or revenue it derives exclusively from providing services such as agentic AI and AI engineering to its clients, grew to $171 ‌million from $155 million in the preceding quarter.

Last week, larger rival Tata Consultancy Services also beat ‌quarterly revenue estimates, raising hopes for a gradual earnings recovery ⁠for the Indian IT sector.

Shares ‌of HCLTech closed ​up 4.9% ahead of the results.

($1 = 95.6200 Indian rupees)

(Reporting by Haripriya Suresh in Bengaluru; Editing by Shilpi ‌Majumdar)


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