**HCLTech Outshines IT Sector with Impressive Returns Amid Challenges**
HCLTech, based in Noida, has achieved a remarkable 29% return since early 2022, standing out in a struggling IT sector grappling with post-pandemic challenges and the looming threat of automation. This performance starkly contrasts with other major players in the industry, which have collectively lost billions in market value as growth prospects have dimmed. According to Bloomberg data, HCLTech shares rose by 28.86% from January 1, 2022, to January 16, 2026. In comparison, the other members of the Big Five faced declines: Tata Consultancy Services (TCS) dropped 14.2%, Infosys fell 11%, Tech Mahindra decreased by 6.7%, and Wipro suffered the most, plummeting over 25%.
This divergence signals a shift in the hierarchy of India’s $283 billion IT services export sector. HCLTech, the country’s third-largest software services provider, has outpaced its competitors in two of the last four years, closing FY25 with $13.84 billion in revenue—a 4.3% annual increase following a 5.4% growth in 2024. CEO C. Vijayakumar highlighted the company’s strong performance, stating, “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.” He noted that while growth is in the mid-single digits, it significantly exceeds that of its peers.
HCLTech is projecting a full-year growth of 4% to 4.5% in constant currency for the current fiscal year, maintaining stable operating margins despite a challenging global spending environment. A key factor in HCLTech’s resilience has been its proactive approach to Generative AI. In October, it became the first among the Big Five to report specific revenue from AI initiatives, generating over $246 million from advanced projects such as “agentic AI,” “AI factories,” and physical AI. Vijayakumar emphasized the company’s forward-thinking strategy regarding AI, stating, “We have been much more proactive about the impact of AI and acknowledging that it will be a deflation in some services.”
Analysts at Motilal Oswal have described HCLTech’s business model as “all-weather,” recognizing its ability to thrive amid macroeconomic uncertainties and high interest rates in key markets like the US and Europe. In contrast, the broader IT sector has experienced a period of stagnation, with the last four years yielding zero to negative returns. The initial excitement of the pandemic era, which saw a surge in digitization and double-digit growth, has given way to concerns over slowing deal pipelines and potential disruptions in Western markets.
Investors have reacted by selling IT shares due to a lack of growth visibility and uncertainties surrounding AI, as noted by industry experts. As HCLTech continues to navigate these challenges successfully, its performance may redefine expectations within the IT services landscape.
**FAQ**
**What factors contributed to HCLTech’s strong performance compared to its peers?**
HCLTech’s proactive approach to Generative AI, consistent revenue growth, and stable operating margins in a challenging economic environment have significantly contributed to its strong performance relative to other major IT companies.
