HCLTech counts on M&As to add 1.5% to revenue

HCLTech expects its recent large acquisitions to contribute about 1.5 per cent to revenue in 2026-27 (FY27), Chief Executive Officer and Managing Director C Vijayakumar said, as the company looks to build newer revenue streams in a subdued macroeconomic environment.

- AVIK DAS

India’s third-largest information technology (IT) services provider spent nearly $400 million last month to acquire two companies — the telecommunications (telecom) solutions business of Hewlett Packard Enterprise (HPE) and Jaspersoft, a unit of Cloud Software Group — to strengthen its capabilities in 5G network transformation and data and artificial intelligence (Al), respectively.

“The acquisitions will be completed in the fourth quarter or the first quarter of the next financial year (FY27), and we believe they will contribute about 1.5 per cent to revenue in the next financial year,” Vijayakumar said in an interaction with Business Standard on Tuesday.

IT companies are increasingly looking to diversify beyond traditional revenue segments, as growth has remained muted over the past few years, resulting in low singledigit growth across the sector.