HCL Tech shares rally over 2.5% on good Q2 numbers; other IT stocks advance too, NIFTY IT index up 1%

The company on Monday reported a flat consolidated net profit of ₹4,235 crore for the quarter ended on September 30, 2025.

The consolidated revenue of HCL Technologies increased by 10.6% to ₹31,942 crore during the reported quarter from ₹28,862 crore a year ago, according to an exchange filing.

HCL Tech Q2 Results QoQ basis

On a sequential basis, the company reported a consolidated net profit of ₹4,235 crore for the quarter ended September 2025, marking an increase of 10.2% from ₹3,843 crore in the previous quarter.

The Noida-based company’s revenue from operations for the first quarter of the financial year 2025-26 also rose 5.2% to ₹31,942 crore as compared to ₹30,349 crore quarter-on-quarter (QoQ).

In terms of constant currency (CC), the tech firm’s revenue inched up 2.5% QoQ and 4.6% year-on-year (YoY).

HCL Tech’s dollar revenue for the quarter stood at $3,644 million, growing 2.8% QoQ and 5.8% YoY.

For Q2 FY26, the earnings before interest and taxes (EBIT) advanced 11.3% to ₹5,503 crore as against ₹4,942 crore in Q1 FY26. The margin for the reporting period expanded 17.25% in contrast to 16.3% QoQ. The Q2 FY26 EBIT margin includes a 55 basis point (bps) impact of restructuring costs, HCL Tech said in a statement.

The company announced a move to merge variable pay of all employees into their salaries as fixed pay and roll out increments from October onwards.

HCLTech CEO and Managing Director C Vijayakumar said the auto segment business of the company continued to struggle, but the rest of the businesses are doing well.

"Our advanced AI revenue this quarter exceeded the $100 million (about ₹8,763 crore) mark, representing approximately 3% of our revenue. Our operating margin came in at 17.5%. Our margins grew 116 basis points sequentially and are the result of the recovery plan we had shared with you last quarter. This quarter, we clocked in a booking of $2.6 billion, which was well balanced across service lines, geographies, and verticals," Vijayakumar said.

The total contract value of deal wins during the September 2025 quarter increased by 15.8% to $2.56 billion, or about ₹22,500 crore, the company said.

Vijayakumar said that the company has, for the first time, crossed the $2.5 billion mark without any mega deal.

He said that the company will focus on developing IPR in the AI space.

HCL software revenue declined by 3.7% YoY, while subscription and support and professional services revenue grew by 8% YoY on a constant currency basis. HCLSoftware's annual recurring revenue increased by 0.6% to $1.06 billion (about ₹9,300 crore) on a constant currency basis.

HCLTech's US revenue, which accounts for 56.2% of total business, increased by 2.4%; Europe revenue by 7.6%; and India business by 0.6%.

HCLTech announces dividend

HCL Technologies on Monday, October 13, declared an interim dividend, alongside its financial results for the three- and six-month periods ended September 30, 2025. The Noida-headquartered IT company’s board of directors declared an interim dividend of ₹12 per equity share with a face value of ₹2 each for the 2025-26 financial year (FY26), it said in a regulatory filing.

Furthermore, the firm also set Friday, October 17, as the record date for the payment of the interim dividend and fixed October 28 as the payment date.

How other IT stocks are performing

Following a decent set of numbers by HCLTech, other IT stocks were also trading with gains. The NIFTY IT index was trading over 1% higher at 35,697.70 levels, with all 10 constituents trading in positive territory.

The biggest gainer was HCLTech (up around 2%), followed by LTIMindtree, Tech Mahindra, and Persistent Systems.