Home / Business and Economy / IT Giants Post Mixed Q2: Tech Mahindra Edges Ahead of HCL Tech
IT Giants Post Mixed Q2: Tech Mahindra Edges Ahead of HCL Tech
16 Oct
Summary
- Tech Mahindra saw 2.4% revenue growth, outperforming HCL Tech in Q2 FY27.
- HCL Tech reported $219 million in Advanced AI revenue, a 28.4% quarterly growth.
- Despite visa scrutiny, both companies show no immediate impact on Americas revenue.
Tech Mahindra announced a 2.4% quarter-on-quarter revenue growth in constant currency for Q2 FY27, reaching Rs 16,180.2 crore. This performance was bolstered by a strong 6% q-o-q increase in its communications vertical. In comparison, HCL Tech reported a 2.3% q-o-q revenue growth in constant currency, with its key IT and business services division seeing a 2.7% rise.
HCL Tech showcased significant advancement in its Advanced AI segment, generating $219 million in Q2 FY27, a 28.4% q-o-q increase. Tech Mahindra, however, did not disclose specific AI revenues but highlighted ongoing global AI projects. Both firms are navigating increased employee numbers and costs, with Tech Mahindra's operating margins improving by 30 basis points and HCL Tech's by 100 basis points.
Investor optimism for the IT sector is emerging despite a challenging year for the Nifty IT index. Crucially, neither Tech Mahindra nor HCL Tech have reported adverse effects on their Americas revenue due to tighter US H-1B visa regulations. HCL Tech's TCV, or new deal wins, surged by 35.4% to $3.25 billion, significantly outpacing Tech Mahindra's $1.02 billion in new deal wins.
