Dear Shareholders,

In 2026, the HCL Group marks its 50th anniversary, a proud moment not only for HCLTech, but for Indian industry and the nation at large. Half a century ago, our founder, Shiv Nadar, pioneered the “art of the possible,” and founded HCL with a radical idea that India could build world-class technology. As we step into the AI era, we carry that same founding instinct into our next 50 years.

AI is creating enormous opportunities through entirely new business propositions, even as it quietly reshapes much of the old. The companies that define the next decade will be those that can do both, pursue the opportunity AI creates while absorbing the disruption it brings.

FY26 was the year HCLTech proved it can do both. We became the first large-cap, India-headquartered technology services company to report Advanced AI revenue—a category spanning AI Factory, Physical AI, Robotics, AI Engineering and Custom Silicon and distinct from Classical AI and usage of AI in traditional services—and reaching annualized Advanced AI revenue of $620 million. For the third straight year, HCLTech outperformed its comparable peers in FY26, with the fastest constant currency overall revenue growth. These two milestones reflect both the growing adoption and maturity of our full-stack offerings and our ability to offset AI-led deflation with new revenue streams.

We became the first large-cap, India-headquartered technology services company to report Advanced AI revenue. For the third straight year, HCLTech outperformed its comparable peers in FY26, with the fastest constant currency overall revenue growth. These two milestones reflect both the growing adoption and maturity of our full-stack offerings and our ability to offset AI-led deflation with new revenue streams."

Ready for the AI Era

FY26 was a pivotal year in HCLTech’s growth journey. We laid a strong foundation for the AI era, moving proactively to turn disruption into opportunity and to build a differentiated AI portfolio. Our ambition is clear: to be the best AI solutions provider in the world.

Our AI-led growth strategy is built around five broad vectors:

The first vector is AI-led service transformation. We are proactively transforming our services and offerings with our flagship platform AI Force and enabling our clients to leverage this cutting-edge platform to accelerate their AI deployment. AI Force is now deployed across 75 of our clients and is translating into large and strategic contract wins that demonstrate the tangible value of our AI capabilities. We are also deploying AI rapidly within our own organization: LUMI, our enterprise AI agent, delivers instant resolution of employee queries, while Talent Navigator, our talent acquisition platform, improves hiring quality and velocity.

The second vector is building differentiated IP and repeatable solutions across IT, SDLC services, engineering services and BPO services, as well as industry-specific use cases that enable enterprises to unlock the intelligence layer offered by hyperscalers and technology OEMs. AI Force and VisionX, our multimodal AI solution for physical operations, are excellent proof points on this vector.

The third vector is unlocking new AI-led growth opportunities. These include:

• AI Advisory: AI consulting across the enterprise value chain, from blueprint to POCs to responsible deployment.
• AI Engineering: Physical AI, focused on embedding intelligence into physical systems and environments and Kinetic AI, focused on robotics and automation.
• AI Factory: Comprehensive cognitive infrastructure spanning AI data center design, build and operate services.

Sovereign AI: In addition to governments, adopting sovereign AI is becoming a key priority for enterprises in heavily regulated sectors such as banking, healthcare and public sector organizations. Enterprises are looking to firms like ours to help them develop, deploy and govern AI systems using infrastructure, data and models entirely controlled within their firms.

The fourth vector is strong partnerships with all key stakeholders across the AI value chain and ecosystem. HCLTech was the first India-based technology company to partner with OpenAI to accelerate enterprise AI adoption. We are also a key partner to NVIDIA, whose CEO named HCLTech as a key Physical AI and Robotics partner in his CES keynote. And we are partnering with leading institutions such as MIT to advance AI research.

The fifth vector is upskilling and transforming our people into AI natives. Our focus is not to replace people with AI but to amplify their potential and drive innovation and productivity across the organization. We have classified our people into three categories: AI Builders, who build solutions and work with large and small models; AI Super Users, who leverage AI in everything they do to dramatically enhance productivity; and Human-in-the-Loop AI Decision Makers, who apply AI in the right context for daily tasks. We are investing in training across all three cohorts. In FY26, we trained over 144,000 employees in GenAI, including 11,800 certified AI Builders and more than 700 certified blackbelts.

Sustained best-in-class performance

For the third straight year, HCLTech outperformed its comparable peers in FY26, with the fastest constant currency revenue growth of 3.9% YoY, which was fractionally lower than our guidance. We continued to be a preferred digital transformation partner for G2000 enterprises and closed the year with total contract value (TCV) of new bookings at $9.3 billion. What’s remarkable is that the performance was delivered in the face of a challenging business environment driven by continued softness in discretionary technology spending by global enterprises as well as geopolitical volatility.

Revenue for the year was ₹130,144 crores, a growth of 11.2% YoY while net income* was ₹17,361 crores. EBIT* was at ₹22,397 crores, at 17.2% of revenue. Services revenue was at ₹118,158 crores, up 12.1% YoY, while HCLSoftware revenue was ₹11,986 crores, up 2.9% YoY.

The company continued to have a very healthy balance sheet with robust free cash flow of ₹18,553 crores, which is 107% of net income. In line with our capital allocation strategy, the Board approved a total dividend payout of ₹60 per share, translating to 97.6% of the net income being returned to shareholders.

Our consistent all-round performance, technology-led innovation and commitment to long-term value creation for all stakeholders are being recognized globally. HCLTech was named to Fortune magazine’s 2026 World’s Most Admired Companies list and was the highest-ranked India-headquartered technology company for the second consecutive year in TIME magazine’s World’s Best Companies list.

Growth with purpose

Sustainability is integral to how we build resilience and long term value. During the year, we further embedded sustainability, ethics and social responsibility into decision making and execution. We have achieved 55.84% reduction in Scope 1 and 2 emissions from the baseline year 2020, four years ahead of the target year 2030. Thanks to these focused efforts, HCLTech was included in TIME magazine’s World’s Most Sustainable Companies 2025 list. Our sustained ESG efforts helped us earn Gold rating from EcoVadis for the second consecutive year and ‘AA’ rating from MSCI ESG Ratings during FY26.

We also released our Responsible AI Transparency Report, the first among global system integrators, outlining the progress we have made in embedding responsible AI across our organization and client engagements. This deep commitment to guardrails is not confined only to AI and spans everything we do at HCLTech. Led by our culture of strong adherence to governance and accountability, we were named by Ethisphere as one of the World’s Most Ethical Companies in 2026, for the third straight year.

Through HCLFoundation, we continued to deliver meaningful impact in our local communities in India, reaching 8.4 million people till date through education, health, livelihoods and environmental initiatives. Our initiatives now extend beyond India to enable inclusive and lasting change across communities worldwide. This includes the HCLTech Grant for Climate Action in the Americas, through which we have already announced $3 million in grants as part of the $5 million commitment.

We remain confident in our ability to execute our AI growth strategy and to continue creating long-term shareholder value, even as we recognize the headwinds that may arise from technology transformation and geopolitical uncertainty. We are optimistic about the AI-led opportunities ahead. The task before us is clear: to execute with speed and discipline and to earn our place among the winners in a market of this scale."

Looking ahead

We remain confident in our ability to execute our AI growth strategy and to continue creating long-term shareholder value, even as we recognize the headwinds that may arise from technology transformation and geopolitical uncertainty. We are optimistic about the AI-led opportunities ahead. The task before us is clear: to execute with speed and discipline and to earn our place among the winners in a market of this scale.

I want to thank all 227,000+ HCLTechies, whose commitment makes us shine every day. And on behalf of everyone at HCLTech, I extend my gratitude to our clients, partners, my fellow Board members and to our shareholders for their continued trust.

Best regards,

C Vijayakumar

*Excluding the one-time impact of New Labour Codes: ₹956 Crores