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Despite global macroeconomic headwinds and a cautious IT spending environment, Indian tech companies like HCLTech, Tech Mahindra, Persistent Systems and Mphasis have bucked the trend in the March quarter, posting resilient growth driven by strong deal wins, sectoral diversification, and aggressive investments in Gen AI.
Analysts attribute HCLTech’s resilience to its strong focus on delivering measurable outcomes for clients—often backed by contractual commitments—demonstrating its confidence in execution. The company combines deep engineering expertise with flexible, cloud-based solutions that adapt easily to evolving client needs.
C. Vijayakumar, the CEO and MD of HCLTech, during the Q4 earnings conference call shared, “Our FY25 growth was supported by our diverse and all-weather portfolio, despite global economic uncertainty. Our razor-sharp focus on clients during this period of uncertainty helped us achieve results that matched our guidance. Our guidance forecast of 2-6 per cent for FY26 is also driven by the Q4 bookings. We have had a good booking and it will convert into revenue and we have analysed each deal. We believe it’s important for clients to continue and some not be impacted by tariffs. We are confident about the ramp-up of our Q4 bookings, which have been among the strongest in recent quarters.”
Biswajit Maity, Sr Principal Analyst, Gartnerhighlighted the company’s approach of combining engineering expertise with adaptable, cloud-based solutions, along with a focus on embedding sustainability into its offerings, positions it as a strong transformation partner.
“HCLTech holds a healthy deal pipeline and continues to invest in AI and digital transformation, which are expected to fuel future growth. The company remains focused on delivering measurable outcomes for clients, often backed by contractual commitments that reflect its confidence in execution. These strategic efforts strengthen its position as a global IT services provider, helping clients adapt to change and achieve long-term transformation goals.”
Similarly, Tech Mahindra also delivered a resilient performance, with encouraging signs of recovery in specific sectors. According to a Motilal Oswal Financial Services (MOFSL) report, Tech Mahindra’s revenue outlook shows strength in BFSI, where early recovery signals are visible and client progress continues. Communications remain neutral, while manufacturing and Hi-Tech sectors remain under pressure, with softness in the automotive vertical and discretionary spending in Hi-Tech.
Despite these challenges, Tech Mahindra posted a 42% year-on-year increase in deal TCV in FY25—the strongest among large and mid-tier peers, according to the report.
“We remain positive about the restructuring at Tech Mahindra under the new leadership and believe this quarter was another step in the right direction. But we expect the impact of these steps to be visible gradually. Its bottom-up transformation appears relatively independent of discretionary spending. With the potential for telecom recovery and improved operational efficiency, we see room for sustained margin improvement.”
Meanwhile, Persistent Systems also stood out with its consistent execution despite broader macroeconomic challenges. Kumar Rakesh, Analyst – IT & Auto at BNP Paribas India, said the company continues to deliver strong growth, demonstrating its solid execution engine.
“As the market gets comfortable with near-term macroeconomic concerns, we see the company’s solid long-term growth potential getting better appreciation,” Rakesh said in a report.
“Despite macroeconomic challenges over the last two years and DOGE-related impact in the recent quarter, it sustained solid revenue growth performance. We see its growth drivers diversifying and decoupling from macroeconomic uncertainties. This raises our conviction on the strong long-term growth that we are building in our estimates. Recent quarters have also demonstrated that the company is back on track with margin expansion and management is targeting 100bp margin expansion in FY26 and 200-300bp over three years.”
Published on April 27, 2025
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