Synospsis: IT stock shares gained after announcing a Rs. 14,257 crore AI Data Center in Odisha in partnership with Sarvam and the state government. The project aims to strengthen India’s sovereign AI ecosystem and expand AI infrastructure capabilities.
The shares of one of India’s leading global IT services companies, providing software solutions, digital transformation, cloud, engineering, infrastructure management, and business process services are in the spotlight after it rose by 2 per cent in today’s market session following the announcement of a Rs. 14,257 crore AI Data Center in Odisha.
With a market capitalisation of Rs. 3,41,853 cr, the shares of HCL Technologies Ltd were trading at Rs. 1259.75 per share, jumping over 2% in today’s market session, making a high of Rs. 1,275.50, up from its previous close of Rs. 1,244.85 per share.
What’s the News
HCL Technologies Ltd (HCLTech) has announced plans to establish its first AI Data Center at the upcoming Odisha Sovereign AI Park in Bhubaneswar. The project will be developed in partnership with Sarvam and the Government of Odisha, with a planned capital outlay of Rs. 14,257 crore, including financial assistance from the state government. The announcement follows HCLTech’s recent entry into the full-stack AI market.
The AI Data Center is aimed at strengthening India’s sovereign AI ecosystem by combining HCLTech’s AI infrastructure and enterprise capabilities with Sarvam’s foundation AI models.
The facility will provide sector-specific AI applications for both public and private enterprises, support multilingual AI services, and help meet India’s data sovereignty requirements. It is also expected to strengthen the country’s developer ecosystem by enabling large-scale AI innovation.
A Memorandum of Understanding (MoU) was signed between HCLTech, the Government of Odisha, and Sarvam in the presence of Odisha Chief Minister Mohan Charan Majhi, HCLTech Chairperson Roshni Nadar Malhotra, CEO & MD C. Vijayakumar, and Sarvam Co-founder Pratyush Kumar.
HCLTech stated that the investment marks a significant milestone in its AI strategy and will help address the growing demand for GPU-powered AI training and inference infrastructure as India’s data center ecosystem continues to expand.
About the company
HCL Technologies Ltd is one of the leading global technology companies providing IT services, engineering, cloud, digital transformation, artificial intelligence (AI), cybersecurity, and software solutions. The company serves clients across industries including financial services, manufacturing, healthcare, telecom, retail, semiconductors, and public services, with operations spanning over 60 countries.
On the financial front, it reported a healthy performance in Q1FY27. Revenue increased 14% YoY to Rs. 34,579 crore from Rs. 30,349 crore in Q1FY26, while EBITDA also rose 14% YoY to Rs. 6,870 crore from Rs. 6,035 crore. Net profit grew 20% YoY to Rs. 4,626 crore compared to Rs. 3,844 crore in the year-ago period, with EPS increasing 20% to Rs. 17.04 from Rs. 14.16.
Revenue Mix
In Q1 FY27, its revenue was primarily driven by the IT & Business Services segment, which contributed 75.1% of total revenue and grew 4.2% YoY in constant currency terms, with an EBIT margin of 17.0%. Engineering & R&D accounted for 16.4% of revenue, growing 0.3% YoY, while HCLSoftware contributed 8.5%, declining 5.3% YoY.
Among verticals, Financial Services remained the largest contributor with 22.1% revenue share, followed by Manufacturing (18.7%), Technology & Services (14.4%), and Life Sciences & Healthcare (14%).
Geographically, the USA remained HCLTech’s largest market, contributing 56% of revenue and growing 2.9% YoY. Europe contributed 27.6%, while the Rest of the World (ROW) region accounted for 13.1% and recorded the strongest growth of 10.8% YoY. India contributed 3.3% of revenue but witnessed the highest growth of 16.9% YoY during the quarter.
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