HCL Tech Q2FY26 results: From profit, revenue, guidance to dividend- 5 key highlights from IT major's Q2 earnings

HCL Tech Q2FY26 results: IT major HCL Technologies on Monday, October 13, reported a consolidated profit (attributable to the owners of the company) of ₹4,235 crore for the July-September quarter of the current financial year (Q2FY26).

The profit numbers remained unchanged year-over-year (YoY), as the company had reported a consolidated profit of ₹4,235 crore for Q2FY25 as well.

However, sequentially, or quarter-on-quarter (QoQ), profit rose by 10.2 per cent, as in Q1FY26, HCL Tech's consolidated profit was ₹3,843 crore.

Consolidated revenue from operations for the quarter under review came at ₹31,942 crore, up 10.7 per cent YoY and 5.25 per cent QoQ. In Q1FY26, the company's revenue was ₹30,349 crore, while in Q2FY25, it was ₹28,862 crore.

“We continue to perform well despite the uncertain business environment and are investing in new technologies and capabilities to unlock growth opportunities. The upskilling of our global talent base remains a key priority and an enabler of innovation for our clients,” said Roshni Nadar Malhotra, Chairperson of HCL Tech.

HCL Tech Q2 results: Key takeaways

Let's take a look at five key takeaways from HCL Tech's Q2 earnings:

1. The key numbers

In constant currency (CC) terms, HCL Tech's revenue saw a modest rise of 2.4 per cent QoQ and 4.6 per cent YoY. On the other hand, dollar revenue increased 2.8 per cent QoQ and up 5.8 per cent YoY to $3,644 million.

HCL Tech's services segment revenue in CC terms rose by 2.5 per cent QoQ and 5.5 per cent YoY.

EBIT in Indian rupees rose 12.3 per cent QoQ and 3.5 per cent YoY to ₹5,550 crore, which was 17.4 per cent of revenue.

In dollar terms, the company's EBIT stood at $637 million (17.5 per cent of revenue), up 10.2 per cent QoQ, but down 0.5 per cent YoY.

EBIT margin for Q2FY26 came at 17.5 per cent against 16.3 per cent QoQ and 18.6 per cent YoY. The Q2FY26 EBIT margin included a 55 bps impact of restructuring costs.

“HCL Tech delivered strong INR revenue growth of 5.2 per cent QoQ and 10.7 per cent YoY in Q2FY26. This superior revenue growth is accompanied by enhanced profitability and solid cash generation, with the last twelve months (LTM) FCF/NI ratio at 125 per cent," Shiv Walia, Chief Financial Officer of HCL Tech, said.

"We remain committed to improving our capital efficiency and are pleased to report LTM ROIC for the company is 38.6 per cent, up 290 bps YoY and for the services business is 45.3 per cent, up 180 bps YoY,” said Walia.

2. HCL Tech FY26 guidance

The company maintained its FY26 revenue and EBIT margin guidance.

It expects its revenue to grow between 3 per cent and 5 per cent year-on-year in constant currency.

Services revenue growth is now expected to be between 4 per cent and 5 per cent YoY in CC, against the earlier projected 3-5 per cent range.

EBIT margin may be between 17 per cent to 18 per cent.

3. HCL Tech headcount and attrition

The company's attrition rate over the last twelve months was 12.6 per cent, compared to 12.9 per cent YoY.

HCL Tech added 3,489 employees and 5,196 freshers during the quarter.

By the end of the September quarter, the company's total headcount was 2,26,640, an increase of 3,489 from the end of the June quarter of this financial year, when it was 2,23,151.

4. Dividend

HCL Tech announced an interim dividend of ₹12 per equity share of ₹2 each for Q2FY26, marking the 91st consecutive quarter of dividend payout. The record date for the said dividend is October 17, 2025.

5. Deal TCV

The total contract value (TCV) of new deal wins by the end of Q2FY26 stood at $2,569 million. The company won several key deals in the US, the UK and Europe during the quarter.

“A standout quarter on every front — marked by strong execution, growing demand for our AI-powered solutions, and Advanced AI revenue exceeding $100M this quarter," said C Vijayakumar, CEO and Managing Director of HCL Tech.

"For the first time, our new bookings surpassed $2.5 billion, without reliance on any mega-deal. We added 3,489 people to our employee base while continuing to increase our revenue per employee by 1.8 per cent YoY, aligned with our AI growth strategy,” Vijayakumar said.

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