HCL Technologies has defied the broader IT sector downturn, delivering exceptional returns while its peers struggled through a challenging four-year period marked by post-pandemic adjustments and automation concerns. The Noida-based company's stock performance has stood out dramatically in an industry that has seen billions in market value disappear as growth prospects dimmed.

Stock Performance Comparison

The performance gap between HCLTech and its competitors tells a compelling story of divergent fortunes in India's $283 billion IT services export industry.

This divergence highlights a shifting pecking order in the industry, with HCLTech, the nation's third-largest software services provider, outgrowing its peers in two of the last four years.

Financial Performance and Growth Strategy

HCLTech closed FY25 with strong financial metrics that underscored its resilient business model:

"Among the large-cap companies, we have delivered the highest growth in the last three years, and in the fourth year running, we would probably deliver the highest growth," said HCLTech CEO C. Vijayakumar. "Even though the growth is mid-single digit, it is definitely much higher than some of our peer group."

AI Leadership and Innovation

A critical differentiator for HCLTech has been its proactive stance on Generative AI. In October, the company became the first among the Big Five to report specific AI revenue figures, demonstrating tangible results from its AI investments.

"We have been much more proactive about the impact of AI and acknowledging that it will be a deflation in some services," Vijayakumar explained. "We focused on what we can do to address it... which, of course, our investors are happy with."

Sector Challenges and Peer Performance

The broader IT sector has faced significant headwinds over the past four years. The pandemic-era euphoria that drove double-digit growth has been replaced by concerns over slowing deal pipelines and potential market disruptions. Wipro exemplifies these struggles, having ended two of the last four years with declining revenue and facing a potential third consecutive decline.

Shareholder Returns Across the Industry

Despite varying stock performance, IT companies have maintained substantial shareholder returns through dividends, buybacks, and bonuses over the four-year period:

Market Outlook and Recovery Prospects

Analysts anticipate a sector-wide recovery beginning in 2026, with AI services expected to serve as the primary growth engine. Axis Capital analysts suggest that calendar year 2026 could mark a definitive pivot for the industry, ending a streak of disappointing performance. "A combination of growth pickup and currency tailwinds should support margins and earnings upgrades," noted Axis Capital analysts Manik Taneja and Rohit Thorat.

HDFC Securities analysts highlighted that "the Indian IT services sector is positioned for a growth recovery starting in 2026, following a phase of muted performance from 2022 to 2025. The upcoming revival is expected to be underpinned by AI services, which are emerging as the key growth engine." However, for now, HCLTech remains the standout performer that has successfully converted strategic positioning into tangible shareholder value.

HCL Technologies has been recognized as the 'Innovation Award' winner at the 2025 Ericsson Supplier Awards, marking a significant achievement in the company's AI and automation capabilities. The award acknowledges HCLTech's substantial contribution to enhancing Ericsson's operational efficiency through advanced AI-driven solutions and automation technologies.

Award Recognition and Selection

HCLTech was selected from Ericsson's extensive supplier ecosystem for its exceptional support in Ericsson's transformation journey toward zero-touch operations. The recognition highlights the company's ability to deliver innovative solutions that drive measurable operational improvements for global technology leaders.

Strategic Partnership and Collaboration

The award stems from a comprehensive multi-year collaboration between HCLTech and Ericsson, focusing on three key technological areas: artificial intelligence, automation, and cloud migration. This partnership has been instrumental in enhancing operational stability and scalability across Ericsson's global operations.

Key aspects of the collaboration include:

• Supporting user environments on a global scale
• Managing critical infrastructure and applications
• Driving operational efficiency through automation
• Implementing AI-driven solutions for zero-touch operations

Leadership Perspective

Apoorv Iyer, Head of GenAI/AI Practice at HCLTech, emphasized the company's comprehensive approach to AI innovation. "At HCLTech, we are redefining AI leadership by driving end-to-end innovation – from silicon to cloud – delivering scalable solutions and fostering responsible ecosystems," Iyer stated. He highlighted that the company's vision extends beyond merely adopting AI technologies to transforming entire industries with scalability, speed, and measurable impact.

Company Profile and Scale

HCLTech operates as a global technology company with a workforce of more than 226,300 people across 60 countries. The company delivers industry-leading capabilities centered around AI, digital, engineering, cloud, and software solutions, supported by a comprehensive portfolio of technology services and products.

The company serves clients across major verticals including Financial Services, Manufacturing, Life Sciences and Healthcare, High Tech, Semiconductor, Telecom and Media, Retail and CPG, Mobility, and Public Services. HCLTech's consolidated revenues for the 12 months ending December 2025 totaled $14.50 billion, demonstrating the company's substantial market presence and operational scale.