HCL Tech Q1 Results 2026: PAT jumps 20%, revenue rises 14%; board declares ₹12 interim dividend

HCL Tech's new deal wins in Q1FY27 were the highest ever at $2,407 million. Advanced AI revenue increased by 10.6% QoQ and 62.1% YoY in CC to $171 million.

“We recorded our highest-ever Q1 net-new bookings of $2.4 billion, 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," said C Vijayakumar, CEO and Managing Director, HCL Tech.

"Combined with the operational efficiencies visible in margin expansion, this momentum gives us the confidence we're positioned to keep outpacing the market over the medium term," said Vijayakumar.

The IT and business services segment, which accounts for 75.1% of total revenue, rose by 4.2% YoY in CC, with EBIT for the segment at 17%.

Engineering and R&D contributed 16.4% of the revenue and witnessed 0.3% YoY rise in CC. HCL Software, with 8.5% revenue mix, declined 5.3% YoY in CC.

Among the verticals, financial services had the highest revenue mix at 22.1%. This segment saw a 5.3% YoY rise in revenue in CC.

Revenue from manufacturing (18.7% revenue mix) increased by 3.7%, from technology and services (14.4% revenue mix) grew by 7.3%, from life sciences and healthcare (14% revenue mix) saw a nominal increase of 0.4%, from retail and CPG (10.3% revenue mix) jumped 10.1%, and from public services, which includes energy and utilities, transport, logistics and government (9.3% revenue mix) increased 12% YoY in CC.

Revenue from telecommunications, media, publishing and entertainment (11.2% revenue mix) decreased by 10.9% YoY in CC.

By geography, revenue mix from the US was 56%, and it increased by 2.9% YoY in CC. Revenue from Europe, with a mix of 27.6%, increased by 0.1% YoY, and the rest of the world (revenue mix of 13.1%) grew by 10.8% YoY in CC.

HCL Technologies retained its FY27 guidance, expecting overall company revenue growth of 1%-4% in constant currency (CC) terms. The company also reiterated its services revenue growth guidance of 1.5%-4.5% YoY in CC terms and maintained its EBIT margin guidance at 17.5%-18.5% for the fiscal year.

HCL Technologies, the country’s third-largest IT company, announced an interim dividend of ₹12 per share, along with its June quarter performance.

The tech giant said that its Board of Directors has recommended an interim dividend of ₹12 per equity share, marking the 94th consecutive quarter of dividend payouts.

The company has also set Friday July 17, as the record date to determine shareholders eligible for the dividend. The payout will be made on Monday, July 27, as per the company's earnings' filing.

HCL Technologies, the country’s third-largest IT company, announced its financial performance for the June ending quarter today, post market hours, reporting a revenue of ₹34,579, registering a 1.8% sequential increase from ₹33,981 crore in the March quarter and a 13.9% year-on-year growth from ₹30,349 crore in the corresponding quarter last year.

Including other income, total income rose to ₹34,940 crore, compared with ₹34,303 crore in the preceding quarter and ₹30,805 crore a year ago. Total expenses increased to ₹28,832 crore from ₹28,601 crore sequentially and ₹25,616 crore a year earlier, largely driven by higher employee benefit and outsourcing costs.

On the bottom line, the net profit has jumped 20.4% YoY to ₹4,626 crore. In the same period, the company had posted a net profit of ₹3,844 crore.

Apart from earnings, the Street will be closely watching whether HCL Technologies announces another interim dividend along with its June-quarter results.

The company declared a ₹24-per-share interim dividend after reporting its March-quarter earnings, continuing its consistent quarterly payout policy.

Investors will closely watch HCL Technologies' management commentary on its FY27 revenue growth and EBIT margin guidance, along with updates on discretionary spending trends, the pace of recovery in the telecom vertical, and the overall demand environment.

The Street will also focus on large deal total contract value (TCV), AI Factory and Generative AI bookings, pipeline conversion, and the company's strategy for monetising AI investments while balancing productivity gains. In addition, commentary on the integration of recent acquisitions, margin outlook, and ongoing cost optimisation initiatives will be key monitorables during the earnings announcement.

Motilal Oswal expects HCL Technologies to report a 1.6% quarter-on-quarter (QoQ) decline in US dollar revenue to $3.62 billion for the June quarter, primarily due to seasonal weakness.

In rupee terms, however, the brokerage estimates revenue to rise 1% sequentially to ₹343 billion, supported by currency tailwinds. The brokerage expects HCL Tech's year-on-year revenue growth to come in at 2.2% in US dollar terms and 13% in rupee terms.

Among Tier-I IT companies, Motilal Oswal forecasts HCL Tech to be among the weakest performers on a sequential basis, alongside Wipro, due to client-specific issues, delayed ramp-ups and seasonal weakness.

JM Financial expects HCL Technologies to report a 1.2% quarter-on-quarter (QoQ) decline in constant currency (CC) revenue for the June quarter, primarily due to seasonal weakness in its services portfolio. The brokerage estimates a 20-basis-point cross-currency headwind, resulting in a 1.4% sequential decline in US dollar revenue.

The brokerage expects the IT Services segment to contract 1.5% QoQ in constant currency, while forecasting order bookings of around $2.2 billion-$2.3 billion during the quarter.

On profitability, JM Financial expects EBIT margin to improve by 40 basis points sequentially, supported by the depreciation of the Indian rupee and the absence of restructuring costs. However, it believes operating deleverage could partially offset these tailwinds.

For the March quarter (Q4 FY26), HCL Technologies reported revenue of ₹33,981 crore, up 0.3% quarter-on-quarter (QoQ) and 12.3% year-on-year (YoY).

In constant currency (CC) terms, revenue grew 3.3% QoQ and 2.4% YoY, while services revenue increased 0.1% QoQ and 4.2% YoY.

EBIT margin stood at 16.5%, declining sequentially but improving on a year-on-year basis. The margin was impacted by restructuring costs of 122 basis points (bps) in Q4 FY26, compared with 81 bps in Q3 FY26 and 55 bps in Q2 FY26, resulting in a full-year impact of 65 bps.

On the bottom line, net profit increased 4.2% YoY to ₹4,488 crore from ₹4,307 crore a year earlier.

The company's total deal bookings stood at $1.94 billion during the quarter, down from $3.01 billion in the preceding quarter.

Kotak Equities expects HCL Tech to retain overall revenue growth guidance of 1-4% and 1.5-4.5% in the IT services business. The hurdle rate to achieve lower end and upper end of guidance stands at 0.7-2.7% from Q2-Q4 of FY27. It expects the IT major to retain a 17.5-18.5% EBIT margin guidance band.

Motilal Oswal HCL Tech’s expect services (IT + ER&D) revenue to decline ~1.5% QoQ CC, reflecting client-specific headwinds in Telecom and Manufacturing, while the software business is likely to remain seasonally weak. Consequently, consolidated revenue is expected to decline 1.4% QoQ CC. EBIT margin may improve ~40 bps QoQ to ~16.9%, driven by Project Ascent-led efficiencies and favorable currency.

The brokerage firm expects BFSI and Hi-tech to remain relatively resilient, while Telecom and Manufacturing may continue to face client-specific weakness.

Investor focus in HCL Tech Q1 results today would be on revenue mix and growth from AI amplified and AI native services, magnitude of deflation from AI disrupted services , pricing pressure in the core business and its consequent impact on margins, factors that can lead to acceleration in growth, profitability and execution discipline in cost take-out and vendor consolidation deals and ability to generate net-new AI-led revenue pools to offset deflation, especially given higher exposure to relatively lower AI-hit infrastructure services.

Equirus Securities expects HCL Tech’s US dollar revenue to dip 1.1% QoQ in CC terms. It expects a CC dip of 1.3% QoQ in Services caused by certain client specific issues. EBIT margin is expected to increase QoQ by 13 bps led by forex benefits, absence of certain restructuring cost related to the Europe segment to be partly compensated by investments and other restructuring costs.

Analysts expect HCL Technologies to reiterate its consolidated CC dollar sales and US Services Sales growth guidance of 1-4% and 1.5-4.5% respectively for FY27E. The company is also expected to reiterate its consolidated EBIT margin guidance of 17.5-18.5% for FY27E.

At the operating level, EBIT during the June quarter is expected to increase 3.9% to ₹5,821 crore from ₹5,602 crore, while EBIT margin to improve by 34 bps to 16.8% from 16.5%, QoQ.

HCL Technologies share price jumped over 6% ahead of the announcement of Q1 results today. The IT stock rallied as much as 6.09% to ₹1,233.55 apiece on the BSE.

Kotak Equities expects healthy TCV of deal wins in the $2.2-2.5 billion range.

The company’s net profit in Q1FY27 is expected to rise 1.9% to ₹4,561 crore from ₹4,476 crore, QoQ, according to Kotak Institutional Equities.

Analysts expect sequential revenue decline of 1.1% in services business, while products business will likely report moderate growth of 1% QoQ. Decline in services business is seasonal and also impacted by ramp downs in a couple of accounts.