Quick Note - HCL Tech (HCLT IN) (Buy) - Invests in India’s sovereign AI

Research evidence excerpt

Quick Note - HCL Tech (HCLT IN) (Buy) - Invests in India’s sovereign AI

Global Markets Research

HCL Tech HCLT.NS HCLT IN 15 June 2026

EQUITY: SOFTWARE & SERVICES

RatingInvests in India’s sovereign AI Remains Buy

Target price INR 1,600 RemainsQuick Note

Closing priceHCLT has announced investing USD150mn into Sarvam (unlisted) – India’s full stack sovereign AI 15 June 2026 INR 1,119

company – for a 10.46% stake. Refer to the announcement here. We note this is the first of its kind

investment by any Indian IT services company in a sovereign AI company.

What is Sarvam? Research Analysts

Sarvam AI is India's leading AI company based out of Bangalore. It builds advanced AI models for India Technology/Services &

text and other formats. The company creates AI products for three main groups: businesses, Software

developers, and government agencies. Sarvam AI focuses on four key industries – banking, Abhishek Bhandari, CFA - NFASL

insurance, government technology, and defense. Sarvam works on language, speech, vision, and abhishek.bhandari@nomura.com

documents and all their models are built from the ground up in India. In the last few months, it has +91 22 403 74120

released foundational models, all trained from scratch in India. Sarvam 105B matches or Karan Nain - NFASL

outperforms larger reasoning models on knowledge, reasoning, and agentic benchmarks, while karan.nain@nomura.com

Sarvam 30B is optimised for the edge, running on consumer hardware. +91 22 676 26540

Sarvam’s models have been able to scale rapidly

Sarvam Vision, built for handwriting and Indian language records, is being used to digitise over 35

million pages from insurance forms to legacy land records. Sarvam’s speech models work in India's