HCL Tech expands digital transformation deal with Swedish CV manufacturer; stock reacts

Shares of HCL Technologies Ltd declined in Wednesday’s trade following the company’s announcement that it has renewed and expanded its long-standing digital transformation deal with one of the world’s largest commercial vehicle (CV) makers, headquartered in Sweden.

On Wednesday, at 9:34 am, shares of HCL Tech were down 0.59 per cent to Rs 1,421.30 on the BSE, compared with the previous close of Rs 1,440.40. The company’s market capitalisation is at Rs 3.85 lakh crore. The stock is trading 9 per cent above its 52-week low of Rs 1,304, but remains 29 per cent below its 52-week high of Rs 2,011.

In a filing to the stock exchanges dated September 23, HCLTech said the Gothenburg-based manufacturer has selected the Indian IT major for “AI-powered digital foundation services, renewing & expanding on the original agreement.”

Under the new multi-year contract, HCLTech will modernise the automaker’s IT infrastructure by deploying its proprietary GenAI-led service transformation platform, AI Force. The platform is designed to deliver hyper-automation, full-stack observability and one-click IT service provisioning, aimed at boosting efficiency and enhancing both employee and customer experiences.

The company said the AI-driven solutions would also support the client’s sustainability agenda. “We are delighted to be a trusted digital transformation partner and contribute to the client’s growth strategy. We look forward to leveraging our full-stack technology portfolio to build a future-ready digital foundation,” said Jagadeshwar Gattu, President, Digital Foundation Services, HCLTech.

Pankaj Tagra, Corporate Vice President at HCLTech, added that the deal underscores the company’s global standing in the auto sector. “This renewal and expanded scope reflect the strong foundation we’ve built together over the years. The expansion of this strategic agreement further reinforces HCLTech’s leadership in the global automotive vertical, which is amongst the company’s key growth areas,” he said.

HCLTech, which employs more than 2.2 lakh people across 60 countries, reported consolidated revenues of $14 billion for the 12 months ending June 2025, the company said.