The IT major reported a strong set of earnings for the quarter ended 30 June 2026 (Q1 FY27) and maintained its FY27 guidance.
The company’s consolidated net profit increased 20.3% year-on-year and 3.0% quarter-on-quarter to Rs 4,624 crore in Q1 FY27.
Revenue from operations rose 13.9% YoY and 1.8% QoQ to Rs 34,579 crore. In US dollar terms, revenue stood at $3.65 billion, up 3.0% YoY but down 0.9% QoQ. Constant currency (CC) revenue declined 0.5% QoQ and increased 2.6% YoY.
EBIT rose 18.0% YoY, while the EBIT margin improved to 16.9%, up 39 basis points QoQ and 56 basis points YoY. Excluding restructuring costs, EBIT margin stood at 17.5%. Net income margin came in at 13.4%, while the adjusted net income margin was 13.8%.
The company’s net new bookings rose to $2.4 billion in Q1 FY27 from $1.936 billion in Q4 FY26, marking its highest-ever first-quarter bookings.
Advanced AI revenue rose 10.6% QoQ and 62.1% YoY in constant currency. Free cash flow to net income (LTM basis) stood at 99%, while return on invested capital (ROIC) improved to 40.7%.
The board declared an interim dividend of Rs 12 per equity share.
HCLTech maintained its FY27 guidance of 17.5%-18.5% EBIT margin and 1%-4% constant currency revenue growth.
Segment-wise, IT & Business Services, which contributed 75.1% of revenue, posted 4.2% YoY CC growth. Engineering & R&D Services grew 0.3% YoY, while HCLSoftware revenue declined 5.3% YoY.
Among industry verticals, Public Services recorded the strongest CC growth at 12.0%, followed by Retail & CPG (10.1%), Technology & Services (7.3%), Financial Services (5.3%) and Manufacturing (3.7%). Telecommunications, Media, Publishing & Entertainment declined 10.9% YoY in constant currency.
Geographically, the United States remained HCLTech’s largest market, contributing 56.0% of revenue and growing 2.9% YoY in constant currency. Europe accounted for 27.6% of revenue and grew 0.1%, while the Rest of the World contributed 13.1% and expanded 10.8%. India, which accounted for 3.3% of revenue, posted the fastest growth at 16.9% YoY.
Commenting on the results, CEO and managing director C. Vijayakumar said the company recorded its highest-ever first-quarter net new bookings of $2.4 billion, while the rapid growth in its AI business reflects increasing enterprise demand for AI-led transformation initiatives. He added that improving operational efficiencies and margin expansion position the company to continue outperforming the market over the medium term.
HCLTech is a global technology company providing AI, digital, engineering, cloud and software services across more than 60 countries. It serves clients across industries including financial services, manufacturing, healthcare, technology, telecom, retail and public services.
Shares of HCL Technologies jumped 5.15% to settle at Rs 1,224.00 on the NSE.
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