HCLTech Q1 profit rises; Sops to fuel Indian chips

HCLTech began FY27 with a strong first-quarter performance. This and more in today's ETtech Top 5.

Also in the letter:
■ Ather eyes fundraise
■ Airtel's new focus
■ Tighter rules for IoT

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C Vijayakumar, CEO, HCLTech

HCLTech posted growth in both profit and revenue for the first quarter of FY27.

Financials:

• Net profit: Up 20% year-on-year (YoY) at Rs 4,624 crore vs Rs 3,843 crore a year ago.
• Revenue from operations: Up 13% YoY at Rs 34,579 crore vs Rs 30,349 crore a year ago.
• Interim dividend: Rs 12 per share, with July 17 fixed as the record date.

Data centre investment: The company plans to invest Rs 3,500 crore to set up artificial intelligence (AI) data centres with a potential capacity of 50 MW. The investment will be made through a new subsidiary and its step-down subsidiaries.

Also Read: HCL Tech announces $1.14 billion AI partnership with European firm


K Krithivasan, CEO, TCS

Tata Consultancy Services (TCS) has reshuffled its leadership team and created new business units as it sharpens its focus on key markets and industries amid the rise of AI.

The restructuring: The changes cover 14 leadership roles and include five new business units. Sources told ET that the revamp is aimed at helping TCS win larger deals, giving leaders greater ownership of business segments, and preparing the next set of leaders.


Also Read: ETtech Q&A | TCS sees better Q2 show on stressed sectors' turnaround

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India's semiconductor consumption is on track to explode, but only if New Delhi keeps writing cheques.

Fab Economics' proprietary forecast pegs India's semiconductor consumption at $130 billion by 2030, riding on government incentives and a steady ramp-up in domestic manufacturing.

By the numbers:

• India's consumption of semiconductor devices and components across end markets is estimated at $54 billion in 2026.
• This could jump to $350 billion by 2035, the report said.
• India could offset more than 20% of its semiconductor import bill through domestic fabrication, packaging and exports.

Tell me more:

• Today, India imports over 85% of the cost of setting up a fabrication (fab) project and around 50% of wafer fabrication costs.
• By 2030, import dependence could fall to over 68% of fab project costs and around 30% of wafer fabrication costs.
• By 2035, it could decline further to 55% of fab project costs and around 18% of wafer fabrication costs, edging India closer to global semiconductor hubs.

Yes, but: Fab Economics warns this trajectory hinges on uninterrupted subsidy support and faster execution. That includes rolling out the India Semiconductor Mission (ISM) 1.0, 2.0, and 3.0 by 2030, without delays or U-turns.

Also Read: West Asia conflict may delay India's chip projects

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(L-R) Swapnil Jain and Tarun Mehta, founders, Ather Energy

Electric two-wheeler maker Ather Energy's board will meet on July 15 to consider raising funds through equity shares, foreign currency convertible bonds (FCCBs) and other equity-linked securities.

More on the round:

• The raise is part of Ather's earlier plan to secure up to Rs 2,500 crore for expansion, R&D, new product development, manufacturing capacity and other corporate needs.
• The company said it may tap one or more routes – including a preferential issue – subject to regulatory and shareholder approvals.

Fund use: The new capital is expected to power Ather's upcoming EL scooter platform aimed at the mass market. Ather is also building a new manufacturing facility at AURIC City in Maharashtra, where it plans to invest more than Rs 2,000 crore.

Rival update: The move comes on the heels of Ola Electric raising Rs 780 crore through a qualified institutional placement (QIP) last month, with investors including SBI Mutual Fund, Motilal Oswal Mutual Fund and Invesco participating.

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Sunil Bharti Mittal, chairman, Airtel

Bharti Airtel is preparing for a growth phase that goes beyond pure-play connectivity.

Chairman Sunil Bharti Mittal said that the company now sees financial services, data centres, and cloud as its next growth drivers, after pouring more than Rs 3.3 lakh crore into digital infrastructure over the past decade, according to the company's annual report.


Driving the news:

• Airtel Money has received Reserve Bank of India (RBI) approval to operate as a non-deposit-taking non-banking financial company (NBFC).
• Data centre arm Nxtra is targeting 1 GW of capacity over the next few years, following a $1 billion investment round.
• Airtel has also built a sovereign cloud offering for enterprise customers.

Yes, but: Executive vice chairman Gopal Vittal flagged continued cost pressures across technology and infrastructure components.

"In response, we are identifying opportunities to simplify processes, eliminate waste and improve productivity through technology and automation," Vittal said.

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The government is preparing to extend its cybersecurity framework beyond CCTV cameras to a wider swathe of Internet of Things (IoT) devices, including smart meters.

More details:

• Officials are exploring stricter security and certification norms for connected devices before they can be sold in India, though nothing is final yet.
• People aware of the discussions told The Times of India that the proposal aims to improve cybersecurity, not to ban any category of devices.
• The move follows mounting concern over cyber risks associated with imported devices, especially those from China.

Zoom out: The proposal builds on a recent rule mandating security certification for internet-enabled CCTV cameras under the Standardisation Testing and Quality Certification (STQC) framework.

Since April 1, only CCTV cameras that meet the prescribed essential security requirements can be sold in India.

Also Read: AI creates biggest cybersecurity opportunity in years: Zscaler CEO