HCLTech net profit rises 20%, plans Rs 3,500 Cr investment in AI data centres
The revenue of the company grew by 14% and the CEO, C Vijaykumar, expressed confidence that it would outpace the market in the medium term.
HCL Technologies (HCLTech) registered a 20% annual rise in net profit at the end of first quarter of FY27 with revenues rising by 14% even as the companies announced a plan to invest Rs 3,500 crore to set up AI data centres.
HCLTech reported a net profit of Rs 4,624 crore for the first quarter of FY27 as compared to Rs 3,843 crore registered in the same period in the last fiscal. The revenues for the quarter reached Rs 34,579 crore as compared to Rs 30,349 in the similar period a year ago.
“We recorded our highest ever Q1 net-new bookings of $2.4 billion and our Advanced AI business grew 10.6% QoQ and 62.1% YoY in constant currency terms. These demonstrate that enterprises are choosing us to lead their AI-led transformation,” said HCLTech CEO C Vijaykumar.
The CEO expressed confidence that the company will keep outpacing the market over the medium term.
Meanwhile, the board of HCLTech approved an investment of up to Rs 3,500 crore for setting up data centres in India.
The investment will be made through the company’s new subsidiaries (direct/stepdown) that would be set up for this purpose.
HCLTech announced its entry into the full-stack AI market to address the complete spectrum of business opportunities arising from growing demand for AI-led services and solutions across the private sector and government.
"This will be powered by a strategic investment of up to Rs 3,500 crore to establish AI data centres, with the potential to scale to 50 MW of capacity," the company said in a statement.
The AI data centre investment is complemented by HCLTech's existing capabilities across AI data centre design and AI cloud operations, as well as our software portfolio, "enabling a truly integrated end-to-end play", it said.
India is among the fastest-growing technology markets globally and a growth market for HCLTech.
According to the company, India's data centre ecosystem is on a rapid growth trajectory, driven by strong demand from a vibrant digital economy, data localisation, and critical infrastructure needs to support GPU deployments for AI training and inference workloads.
Vijayakumar said, "The convergence of AI-led demand, supply constraints and push for digital sovereignty presents a compelling opportunity for us to emerge as a full-stack AI technology solutions provider".
(With inputs from PTI)