HCLTech Q1 results: Net profit soars 20% YoY to ₹3,843 crore; check FY27 guidance, dividend record date

The company posted a 20.32% year-on-year (YoY) surge in its consolidated net profit (attributable to the owners of the company) to ₹4,624 crore during the quarter under review, compared with ₹3,843 crore in the June quarter of the 2025-26 fiscal year (Q1 FY26).

Sequentially, its profit rose 3.03% quarter-on-quarter (QoQ) from ₹4,488 crore in the March quarter of FY26.

Its consolidated revenue from operations soared 13.94% YoY to ₹34,579 crore in latest June quarter, as against ₹30,349 crore in the corresponding period of the previous fiscal year.

On a QoQ basis, its revenue rose 1.76% from ₹33,981 crore in the quarter-ago period.

In dollar terms, its revenue jumped % YoY to $3,650 million in constant currency (CC) terms for the reporting quarter, from $3,545 million in the year-ago period. However, it declined 0.5% QoQ from $3,682 million in Q4 FY26.

At an operational level, its EBIT (earnings before interest and taxes stood at ₹5,831 crore in Q1 FY27, marking a 17.99% YoY surge from ₹4,942 crore in the June quarter of FY26. Sequentially, it increased 3.75% QoQ from ₹5,620 crore in the preceding quarter.

It recorded an EBIT margin of 16.9% during the quarter under review, reflecting a 56 basis points (bps) YoY increase from 16.3% in the year-ago period and 39 bps QoQ rise from 16.5% in the fourth quarter of FY26.

The company noted that the EBIT margin saw a 62 bps impact from the restructuring cost during the last quarter and a 122 bps impact in the March quarter of FY26.

FY27 guidance

In the 2026-27 financial year (FY27), the company expects its revenue to grow in the 1%-4% YoY range, in CC terms.

Furthermore, its expects its services to see 1.5% to 4.5% YoY (in CC) growth and its EBIT margin to be between 17.5% and 18.5% during the current financial year.

Other key highlights

• Its advanced AI revenue grew 62.1% YoY and 10.6% QoQ in CC terms to $171 million in Q1 FY27.

• Segment-wise, the IT & business services segment saw a 4.2% YoY growth in CC terms, and the engineering & research and development (R&D) segment grew 0.3% YoY. However, the HCLSoftware segment declined 5.3% YoY (CC).

• Its public services vertical, which includes Energy & Utilities, Travel, Transport, Logistics and Government, surged 12% YoY (in CC terms) in the June quarter. The retail & CPG vertical grew 10.1% YoY, the technology & services vertical saw 7.3% growth, financial services grew 5.3%, manufacturing was up 3.7%, and lifesciences & healthcare rose 0.4% YoY. On the other hand, its telecommunications, media, publishing & entertainment vertical witnessed a 10.9% YoY fall in Q1 FY27.

• Geographically speaking, its Indian market saw the most growth at 16.9% in Q1 FY27, followed by the rest of the world at 10.8% YoY. The US market rose 2.9%, and Europe increased by 0.1% YoY (in CC terms).

• HCLTech’s attrition rate (last twelve months) stood at 12.7% during the quarter, down marginally from 12.8% in the previous June quarter. However, it was up from 12.5% in Q4 FY26.

• Its revenue per employee per annum advanced by 3.3% YoY and 0.7% QoQ to $65,500 in the April-June quarter of the current fiscal year.

• It recorded a 6.9% YoY and a 4.5% QoQ growth in its diluted earnings per share (EPS) to ₹66.90 in Q1 FY27.

• In the reporting period, its bookings or new deal wins stood at $2,407 million.

What the management said

Commenting on the results, C Vijayakumar, CEO & Managing Director of HCL Technologies, said: “We recorded our highest ever Q1 net-new bookings of $2.4Bn and our Advanced AI business grew 10.6% QoQ and 62.1% YoY in constant currency terms. These demonstrate that enterprises are choosing us to lead their AI-led transformation."

He added that combined with the operational efficiencies visible in margin expansion, the momentum has given the company the confidence that it is positioned to keep outpacing the market over the medium term.

“HCLTech delivered a steady Q1 FY27 performance, with revenue growth of 13.9% YoY, EBIT growth of 18.0% YoY and Net Income growth of 20.3% YoY. Excluding the impact of restructuring costs, EBIT margin and Net Income margin stood at 17.5% and 13.8%, respectively," stated Shiv Walia, the Chief Financial Officer of HCLTech.

Walia further said that the company's cash generation has continued to be robust, with OCF/NI at 111%, reflecting the strength and resilience of its business model.

"We remain focused on further improving capital efficiency and are pleased to report LTM ROIC of 40.7% for the company, up 257 bps YoY, and 47.8% for the Services business, up 260 bps YoY," Walia added.

Commenting on the earnings, the firm's Chairperson, Roshni Nadar Malhotra, said: "AI is accelerating the transformation of global enterprises and unlocking new growth vectors for HCLTech. With our differentiated portfolio, we continue to demonstrate our ability to help clients leverage technology to drive their business strategies."

She further stated that the firm has also remained focused on upskilling its people in emerging technologies and is embedding AI across the organisation.

Interim dividend declared

Furthermore, the board of directors of HCL Technologies also declared an interim dividend of ₹12 per equity share of ₹2 each for the 2026-27 financial year (FY27).

Its board also fixed July 17, 2026, as the record date, along with setting July 27, 2026, as the date of payment for the interim dividend.

HCL Tech has a total market capitalisation of ₹3.32 lakh crore as of July 13, 2026, according to data on the NSE.