HCLTech Q2 results: Net profit soars 11% QoQ to ₹5,132 crore, AI revenue grows to $219 million; dividend declared

The company posted a 10.94% quarter-on-quarter (QoQ) jump in its consolidated net profit (attributable to the owners of the company) to ₹5,132 crore during the quarter under review, compared with ₹4,626 crore in the first quarter of FY27 (Q1 FY27).

Annually, the firm’s profit rose 21.18% year-on-year (YoY) from ₹4,235 crore in the second quarter of the 2025-26 fiscal year (Q2 FY26).

Its consolidated revenue from operations soared 3.01% QoQ to ₹35,620 crore in the quarter ended September 30, 2026, as against ₹34,579 crore in the quarter-ago period.

Its revenue from operations increased by 11.5% from ₹31,942 crore in the same period of the preceding fiscal year.

In dollar terms, its revenue jumped 2% QoQ to $3,724 million in constant currency (CC) terms for the reporting quarter, from $3,650 million in the June quarter of FY27. It rose 2.2% YoY from $3,644 million in Q2 FY26.

At an operational level, its EBIT (earnings before interest and taxes) stood at ₹6,465 crore in Q2 FY27, marking a 10.87% QoQ surge from ₹5,831 crore in the June quarter of FY27. It rose 16.5% YoY from ₹5,550 crore in the year-ago period.

It recorded an EBIT margin of 18.2% during the quarter under review, reflecting a 131 basis points (bps) QoQ increase from 16.3% in the quarter-ago period and a 71 bps YoY rise from 17.5% in the second quarter of FY26.

The company noted that the EBIT margin saw a 62 bps impact from the restructuring cost in the reporting quarter, a 62 bps impact in the June quarter of FY27, and a 55 bps impact in Q2 FY27.

Advanced AI revenue

The company recorded advanced artificial intelligence (AI) revenue of $219 million, in CC terms, marking a 28.4% QoQ and 78% YoY growth.

“The accelerating growth in Advanced AI revenue validates our business strategy. Through strategic partnerships and continued investments across the full AI stack, HCLTech is well-positioned to be a trusted technology partner for enterprises and governments globally,” said Roshni Nadar Malhotra, Chairperson of HCLTech.

FY27 guidance

The company revised its guidance for the 2026-27 financial year (FY27), with the company expecting its revenue to grow in the 2.5%-4.0% range, in CC terms, up from 1%-4% guidance it reported in the previous quarter.

In the previous quarter, the firm had guided for its services to see 1.5% to 4.5% YoY growth. However, this was revised upwards, with services now expected to see 3% to 4% YoY (in CC) growth.

However, the company maintained its EBIT margin guidance for the current financial year, expecting it to stand between 17.5% and 18.5%.

Other key highlights

• During the quarter, the IT & Business Services segment contributed 75.4% to the company’s revenue mix. The engineering and research and development (R&D) segment made up 16.7% of the revenue, while the HCLSoftware segment accounted for 7.9%.

• Geographically speaking, its Indian market saw the most growth at 21.8% YoY in Q1 FY27, followed by the rest of the world at 11.8% YoY. The US market rose 3.5%, while Europe declined by 0.3% YoY (in CC terms).

• HCLTech’s attrition rate (last twelve months) stood at 12.8% in the quarter ended September 30, 2026, up from 12.7% in the quarter-ago period and 12.6% in Q2 FY27.

• Its revenue per employee per annum fell by 0.1% QoQ but rose 2.4% YoY to $65,400 in the July-September quarter of the current fiscal year.

• It recorded a 5% QoQ and a 12.2% YoY growth in its diluted earnings per share (EPS) to ₹70.22 in Q2 FY27.

• In the reporting period, its bookings or new deal wins stood at $3,258 million.

What the management said

Commenting on the results, C Vijayakumar, CEO & Managing Director of HCL Technologies, said: “We delivered a strong quarter with new bookings of $3.3 billion, up 27% YoY, taking first half bookings to a record high. EBIT margin expanded 131 bps QoQ to 18.2%. Services grew 3.0% QoQ with growth across verticals and geographies, while overall revenue grew 2.3% QoQ.”

Citing the QoQ and YoY growth in advanced AI revenue, he further stated that the company’s AI propositions have been resonating well with its clients, “giving us confidence in our growth trajectory”.

“Our superior revenue growth with improved profitability led to our highest-ever quarterly Net Income of ₹5,132 Crores, up 11.0% QoQ and 21.2% YoY," stated Shiv Walia, the Chief Financial Officer of HCLTech.

Walia further said that the company's “razor-sharp” focus on improving its capital efficiency has resulted in LTM ROIC of 41.2%, up 261 bps YoY; and 49.4% for the Services business, up 411 bps YoY, respectively.

Interim dividend declared

Furthermore, it fixed October 16, 2026, as the record date and October 26, 2026, as the payment date for the interim dividend.

HCL Technologies has a total market capitalisation of ₹3.32 lakh crore as of October 12, 2026, according to data on the NSE.