HCLTech CEO Warns of Painful Transition with Widespread Adoption of AI Technologies

HCL Technologies Ltd. CEO C. Vijayakumar Dismisses Concerns Over IT Services Industry

Market Update HCL Technologies Ltd.'s shares fell 6.1% on February 23, 2026, amid concerns over the relevance of IT services in the face of artificial intelligence (AI) advancements. The company's shares have declined by over 17% since the start of the year, while the industry's Nifty IT index has fallen more than 20%.

Industry Outlook HCL Technologies Ltd.'s CEO, C. Vijayakumar, stated that the industry is at its biggest inflection point yet, but dismissed fears of sweeping disruption. He argued that enterprise adoption of AI will take time and is not as dramatic as being portrayed. Vijayakumar emphasized that the transition will be painful due to its people-led nature.

Revenue Performance HCL Technologies Ltd. ended last year with $13.84 billion in revenue, up 4.3%. The company is the fastest-growing IT services company among India's big five for the last two years. In revenue terms, HCLTech ranks third among India's IT service providers, behind Tata Consultancy Services and Infosys.

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Revenue Comparison

• Tata Consultancy Services: $30.18 billion, up 3.8%
• Infosys: $19.28 billion, up 3.8%
• Wipro: $10.51 billion, down 2.7%
• Tech Mahindra: $6.26 billion, down 0.2%

GenAI Revenue HCLTech reported $246 million in revenue from advanced projects, including agentic AI, AI factories, and physical AI for the July-December 2025 period.

Industry Adaptation HCL Technologies Ltd.'s chairperson, Roshni Nadar-Malhotra, stated that the industry has adapted to many technological cycles in the past and that AI is not the first time the industry has faced such challenges.

Semiconductor Industry Vijayakumar stated that semiconductor companies and tech hardware manufacturers stand to benefit the most from the AI wave, with enormous value captured by these companies. HCL Corp, the parent company of HCL Technologies Ltd., plans to supply chips for a quarter of India's displays by the next two years.

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