en.Wedoany.com Reported - HCL Tech announced a strategic partnership with a Fortune Global 50 company headquartered in Europe, with the initial value of the deal at $1.14 billion, representing a new business for HCLTech.

Sources told The Economic Times that the European Fortune Global 50 company is Mercedes-Benz. Under the agreement, HCLTech will manage the automaker's digital workplace and network operations, a contract previously executed by Infosys.

Under this partnership framework, HCL Tech will establish an artificial intelligence-driven operating model to transform and manage the client's global digital workplace and enterprise network. According to relevant regulatory filings, the initial term of the agreement runs from July 2026 to December 2031, with an option to extend for an additional five years.

This deal was announced weeks after HCL Tech disclosed an investment of 14.27 billion rupees (approximately $150 million) in Indian AI startup Sarvam AI, acquiring a 10.46% stake. As part of the partnership, HCLTech will support Sarvam AI's research and development efforts focused on next-generation frontier AI agent models, coding models, and cybersecurity applications.

In terms of performance outlook, the company expects revenue to grow 1% to 4% year-on-year at constant currency, with service revenue projected to increase by 1.5% to 4.5%. The EBIT margin is expected to be between 17.5% and 18.5%.

According to the latest financial report, HCL Tech's consolidated net profit for the March quarter (the fourth quarter of fiscal 2026) was 44.88 billion rupees, up 4.2% from 43.07 billion rupees in the same period last year. Operating revenue for the quarter was 339.81 billion rupees, up 12% year-on-year. Sequentially, revenue increased slightly by 0.3% from 338.72 billion rupees in the third fiscal quarter. However, at constant currency, revenue fell 3.3% sequentially but rose 2.4% year-on-year. In U.S. dollar terms, revenue was $3.682 billion, down 2.9% sequentially and up 5.3% year-on-year.

HCL Tech failed to meet its revenue growth expectations for fiscal 2026. The company had originally projected growth of 4% to 4.5%, but the actual full-year growth rate was 3.9%. At constant currency, service revenue fell 0.1% sequentially but grew 4.2% year-on-year. Advanced AI revenue for the quarter was $155 million, up 6.1% sequentially at constant currency. Since the beginning of the year, HCL Tech's stock price has fallen by 34%.