HCLTech Leads the Charge: IT Deal Wins Soar 26% on AI Spending Surge

India’s IT services sector recorded a strong revival in the September 2025 quarter, with total deal wins rising 26% year-on-year. The improvement marks a turning point for the industry after several muted quarters, and HCLTech emerged as the strongest performer. Growing global spending on artificial intelligence (AI) projects is now becoming a key driver of new contracts, improving revenue visibility for the coming years.

HCLTech Outperforms Peers in New Deals

Among the top players, HCLTech delivered the sharpest recovery in quarterly deal wins, helping lift overall sector performance. On a quarter-on-quarter basis, industry-wide deal wins improved 2.8% after a large decline in the previous quarter.

In contrast, Infosys, Mphasis and LTIMindtree reported softer wins, highlighting the difference in execution strength across companies.

For investors, HCLTech’s strong pipeline reflects better traction in digital transformation work, which could support more stable revenue growth through FY26 and FY27.

AI Spending Drives New Contract Cycles

A major reason behind the rise in new contracts is the sharp increase in AI spending by global clients. Companies across sectors are allocating larger budgets toward automation, data engineering, modernisation and cloud integration.

These projects typically carry better margins and longer durations, allowing IT firms to build more profitable portfolios.

AI-led deals are also helping offset declining work in legacy services, which have been affected by productivity gains and tighter client budgets.

Improving Last-Twelve-Month Metrics Show Broadening Strength

Across leading IT firms, deal wins on a last-twelve-months basis rose 7.8%, compared to 2.3% in the previous quarter.

Mid-cap players such as Coforge and Wipro reported strong LTM growth, showing that the recovery is not limited to large-cap names.

This improvement suggests that deal momentum has stabilised despite economic, tariff and geopolitical uncertainty.

Better Pipeline Visibility Supports Future Performance

As project delays ease and budgets expand, 2026 is expected to be a stronger year for the industry. A new cycle of AI-native workloads is likely to become a meaningful revenue tailwind from FY27.

For IT companies, stronger pipelines mean lower earnings volatility, improved margins and better performance consistency. Stocks with higher exposure to AI and modernisation work may deliver superior growth.

Conclusion

With a sharp jump in deal wins and growing AI-led demand, India’s IT sector appears to be entering a phase of gradual recovery. HCLTech’s strong performance signals improving confidence among clients and a healthier industry outlook. If the momentum continues, IT firms could see stronger revenue visibility, better margins and a more stable growth environment over the next two years.

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