HCLTech reported double-digit growth in revenue and net profit for the first quarter of FY27, raised its interim dividend to Rs 12 per share, expanded margins, posted strong deal bookings and continued workforce additions with stable attrition.
HCLTech's board declared an interim dividend of Rs 12 per equity share of face value Rs 2 for FY27. The record date has been fixed as 17 July 2026, while the dividend will be paid on 27 July 2026.
Addressing a press conference C Vijaykumar, CEO and MD of HCLTech spotlighted the AI opportunities undertook by the company and said, “Our intent is to benefit disproportionately from AI native and AI amplified opportunities.” Adding to that he said, the company wished to stay ahead of the deflationary curve rather than be defined by it. The company reflected growing advanced AI revenue of USD 171 million, marking 10 per cent quarter-on-quarter (QoQ) increase and 62.1 percent year-on-year (YoY) increase.
Revenue and Profit Rise Across the Board
HCLTech reported consolidated revenue from operations of Rs 34,579 crore in the quarter ended 30th June 2026, up 13.9 per cent YoY from Rs 30,349 crore and 1.8 per cent QoQ from Rs 33,981 crore.
Net profit attributable to shareholders rose to Rs 4,624 crore, registering 20.3 per cent YoY growth from Rs 3,843 crore and 3 per cent QoQ growth from Rs 4,488 crore.
Profit before tax (PBT) increased to Rs 6,108 crore, compared with Rs 5,189 crore a year ago and Rs 5,702 crore in the preceding quarter, a growth of 17.7 per cent YoY and 7.1 per cent QoQ.
Basic earnings per share (EPS) improved to Rs 17.09, from Rs 14.18 in the year-ago quarter and Rs 16.59 in Q4 FY26.
Margins Improve Sequentially and Annually
HCLTech reported an EBIT margin of 16.9 per cent for the first quarter of FY27, expanding by 39 basis points QoQ and 56 basis points YoY. According to the company, the reported EBIT margin includes the impact of 62 basis points of restructuring costs incurred during the quarter.
Diluted earnings per share (EPS) increased to Rs 66.90, rising 4.5 per cent QoQ and 6.9 per cent YoY. The board also declared an interim dividend of Rs 12 per equity share for FY27, payable on 27 July , with 17 July fixed as the record date for determining eligible shareholders.
IT Services Continue to Drive Growth
The IT and Business Services segment remained the largest contributor, generating Rs 26,049 crore in revenue, up from Rs 22,454 crore a year ago and Rs 25,443 crore in the previous quarter.
Engineering and R&D Services revenue stood at Rs 5,690 crore, compared with Rs 5,174 crore in Q1 FY26, while it declined marginally from Rs 5,783 crore in Q4 FY26.
Revenue from HCL Software increased to Rs 2,840 crore, from Rs 2,721 crore a year earlier and Rs 2,755 crore sequentially.
Deal Wins Remain Strong
HCLTech reported Total Contract Value (TCV) of new deal wins of USD 2.41 billion during the quarter, supported by large services engagements and continued client spending across business segments.
Workforce and Attrition
HCLTech's total headcount stood at 2,23,889 employees as of 30 June 2026, compared with 2,27,181 at the end of the previous quarter, resulting in a net reduction of 3,292 employees during Q1 FY27. The company added 1,056 freshers in the quarter, down from 1,712 in the March quarter and 1,984 in the corresponding quarter last year.
Attrition on a last-twelve-month (LTM) basis remained broadly stable at 12.7 per cent, compared with 12.5 per cent in the preceding quarter and 12.8 per cent a year earlier. Meanwhile, revenue per employee improved to USD 65,500 per annum, up from USD 65,100 in the March quarter and USD 63,400 in the year-ago period, indicating higher productivity.
Analyst View
Shubham Rathore, Principal Analyst at Gartner, said, "This quarter's results for HCLTech highlight a disciplined approach to profitability, featuring a 56 basis point year-over-year improvement in EBIT margins alongside USD 3.65 billion in total revenue."
He added that the company's Advanced AI business generated USD 171 million, positioning it well to benefit from wider enterprise AI adoption. However, he noted that macroeconomic headwinds contributed to a 0.5 per cent sequential decline in constant currency revenue, while strong new bookings provide a foundation for future growth. |
