HCLTech’s growth outlook improves, but risks remain

HCLTech’s record deal bookings and rapidly growing artificial intelligence (AI) business are strengthening its medium-term growth prospects, but the pace at which these translate into revenue remains uncertain amid subdued discretionary spending and weakness in its software business.

The IT major’s strong September-quarter performance has improved visibility for FY28, though its largely unchanged organic growth outlook for FY27 suggests that a broad-based recovery is still some distance away.