HCL Tech shares soar 6% after $1B AI deal
What's the story
HCL Technologies has witnessed a major spike in its share price, rising as much as 6% to an intraday high of ₹1,139 on the BSE today. This comes after the company announced a strategic partnership with a European Fortune Global 50 firm, likely to be Mercedes-Benz. The deal is worth $1.14 billion and will see HCL manage the client's digital workplace and networks over an initial term from July 2026 to December 2031.
Project details
HCL Tech to create an AI-driven operating model
As part of the partnership, HCL Tech will create an AI-driven operating model for the client's Global Digital Workplace and Enterprise Networks. The company said in a regulatory filing that this is completely new business for them. The deal comes just weeks after HCL Tech's ₹1,427 crore investment in Sarvam AI to acquire a 10.46% stake in the Indian artificial intelligence start-up.
Financial overview
HCL reported 4.2% rise in net profit for March quarter
HCL Tech reported a 4.2% rise in consolidated net profit for the March quarter at ₹4,488 crore, compared to ₹4,307 crore in the same period last year. Revenue from operations for Q4FY26 stood at ₹33,981 crore, a 12% increase from ₹30,246 crore recorded in the corresponding quarter of the previous financial year. However, on a sequential basis revenue rose marginally by 0.3% but declined in constant currency terms by 3.3%.