Bengaluru: HCL Technologies Ltd, India’s third-largest IT services company, reported stronger-than-expected revenue for the second quarter of fiscal 2025, driven primarily by growth in its engineering and R&D services segment. Consolidated revenue rose 10.7% year-on-year to ₹319.42 billion ($3.60 billion) for the July–September quarter, surpassing analysts’ forecast of ₹313.55 billion. The company maintained its annual revenue growth forecast of 3%–5%, reflecting confidence in its ongoing business strategy despite global uncertainties.
Profit for the quarter remained largely flat at ₹42.35 billion, slightly below the anticipated ₹42.39 billion. The revenue uplift was supported by large contracts secured in previous quarters, including deals with Volvo Cars and European energy firm Equinor, highlighting HCLTech’s continued success in landing high-value global contracts.
Geographically, all of HCLTech’s markets showed growth. Europe saw a 7.6% increase in revenue, while the rest of the world markets surged by 17.9%. Within business segments, the engineering services unit posted a 13.4% growth, the only division to achieve double-digit expansion during the quarter, emphasizing its strategic focus on high-growth areas.
New deal bookings for HCLTech reached $2.57 billion, rising from $1.81 billion in the previous quarter and $2.2 billion in the same period last year, indicating sustained client demand. Despite muted demand from the U.S., impacted by higher H-1B visa fees and tariffs on Indian exports, the company’s strong performance in other regions and service lines mitigated the slowdown.
HCLTech’s results reflect the firm’s ability to navigate global market challenges while continuing to expand in engineering and R&D services. Peers including Infosys, Wipro, and LTIMindtree are expected to release their quarterly results later this week, while Tata Consultancy Services has already reported better-than-expected revenue, signaling positive momentum across India’s IT sector.