Tech Mahindra, HCLTech Signal IT Sector Recovery; Hiring Picks Up
Promoted
India’s IT services sector is improving, with Tech Mahindra and HCLTech reporting stronger financial performance in the September quarter of FY27. Higher deal wins, improved operating margins and growing artificial intelligence (AI) revenue are supporting business growth, while hiring activity has also picked up across major IT companies.
Advertisement
However, the recovery remains uneven, with companies continuing to focus on project demand, cost management and specialised technology skills.
Tech Mahindra and HCLTech Report Q2 Growth
Tech Mahindra reported consolidated revenue of ₹16,180 crore in Q2 FY27, registering 15.6% year-on-year growth. Revenue increased 3% sequentially in rupee terms and 2.4% in constant currency terms.
The company’s net profit increased 32.7% year-on-year to ₹1,586 crore, compared with ₹1,195 crore in the corresponding quarter last year. Its earnings before interest and tax (EBIT) margin improved to 14.8%.
Advertisement
Tech Mahindra reported new deal wins worth $1.023 billion during the quarter, marking its fourth consecutive quarter with deal wins exceeding $1 billion.
HCLTech reported revenue of ₹35,620 crore, registering 11.5% year-on-year growth. Its revenue increased 2.3% sequentially in constant currency terms.
The company’s net income rose 21.2% year-on-year to ₹5,132 crore, while its EBIT margin improved to 18.2%. HCLTech reported new deal wins worth $3.258 billion during the quarter.
AI Revenue Adds to Growth Momentum
Advertisement
Artificial intelligence is becoming an important business area for India’s IT services companies, with clients increasingly exploring AI-led technology solutions and enterprise applications.
HCLTech reported advanced AI revenue of $219 million in Q2 FY27, registering 78% year-on-year growth in constant currency terms. The company has been expanding its AI services and capabilities to address growing demand from clients.
Tech Mahindra is also expanding its AI-related services and enterprise technology offerings. New technology engagements and deal wins are expected to support its business performance in the coming quarters.
HCLTech retained its FY27 revenue growth guidance of 2.5% to 4% in constant currency terms, indicating a measured outlook for the financial year.
IT Hiring Picks Up in September Quarter
The improvement in business performance is also accompanied by an increase in employee additions across major IT services companies.
Five large IT companies — TCS, Infosys, HCLTech, Wipro and Tech Mahindra — recorded combined net headcount additions of 13,918 employees in Q2 FY27, compared with 5,480 in the previous quarter.
HCLTech added 6,450 employees during the quarter, followed by Tech Mahindra with 5,446 and Infosys with 4,480. TCS added 4,258 employees, while Wipro reported a workforce reduction of 6,716.
Fresher recruitment is also showing signs of improvement. HCLTech added 6,136 freshers during the September quarter and expects to recruit 10,000–11,000 freshers during FY27.
The hiring trend indicates that IT companies are gradually increasing recruitment to meet business requirements. However, hiring remains selective, with greater attention to specialised technology capabilities, AI-related skills and project requirements.
Outlook: Recovery Remains Uneven
The September-quarter results provide encouraging signs for India’s IT services industry. Improved deal wins, higher margins and growing AI-related business are supporting companies such as Tech Mahindra and HCLTech.
However, stronger deal bookings do not immediately translate into revenue growth or additional employment. Companies continue to face cautious client spending, changing technology requirements and pressure to manage operating costs.
The next few quarters will be important in determining whether the improvement in financial performance leads to sustained business growth and a broader recovery in IT hiring.