HCLTech share price falls as Q1 profit drops 10% YoY to ₹3,843 crore, dividend announced; here’s what CEO C Vijayakumar said

The company recorded a 9.72% fall in its consolidated net profit (attributable to owners of the company) at ₹3,843 crore in the latest June quarter as compared to ₹4,257 crore in the year-ago period. Sequentially, the profit fell 10.77%.

Revenue from operations stood at ₹30,349 crore in Q1 FY26, up 8.16% from ₹28,057 crore in the June quarter of FY25. Sequentially, it rose 0.34%.

HCL Technologies share price

Shares of HCLTech slipped 4% to ₹1,555 apiece on the National Stock Exchange (NSE) at 10:03 am. Its market capitalisation stands at ₹4,21,974.92 crore.

Here's what CEO C Vijayakumar said on HCLTech's Q1 results

In an exchange filing, C Vijayakumar, the CEO and MD of HCLTech, said, "We had healthy revenue growth of 3.7% YoY supported by good performance in our Services business with 4.5% YoY growth in constant currency. Our operating margin came in at 16.3%, impacted by lower utilisation and additional Gen AI and GTM investments," HCLTech CEO and MD CVijayakumar said.

He said that the company's artificial intelligence (AI) propositions were resonating well with customers and clients and have been further augmented by its partnership with the world's leading AI startup, OpenAI.

"Our pipeline continues to grow as the demand environment was stable during the quarter," he said, adding that the April-June quarter saw a one-time impact of 20 basis points (bps) from a client bankruptcy.

In an earnings call, Vijayakumar announced a restructuring plan on both the people and non-people sides with the objective to get back to 18% to 19% margins.

"There will be incremental costs involved in achieving this. That is also the reason we have taken our guidance to be a little lower this year," he added.

HCLTech announces interim dividend

The company's board of directors also declared an interim dividend of ₹12 per share. The record date has been fixed as July 18, and the payment date is July 28.