HCLTech Q2 Results: IT services giant HCLTech reported a strong financial performance for the second quarter of FY 2026-27, with consolidated net profit rising 21% year-on-year (YoY) to ₹5,132 crore. Revenue from operations increased 12% to ₹35,620 crore, supported by growth in services, new deal bookings and increasing demand for artificial intelligence (AI) solutions.
The company also announced its second interim dividend of ₹12 per equity share for FY27. Meanwhile, management maintained its full-year operating margin guidance despite ongoing challenges in the global IT services industry.
HCLTech Q2 Results FY27: Key Highlights
Here are the major highlights from HCLTech’s September quarter earnings:
- Consolidated net profit increased 21% YoY to ₹5,132 crore.
- Revenue from operations grew 12% to ₹35,620 crore.
- EBIT reached ₹6,465 crore, with an operating margin of 18.2%.
- The board declared an interim dividend of ₹12 per share.
- New deal bookings stood at $3.26 billion.
- Advanced AI revenue increased 78% YoY to $219 million.
- The company added 6,450 employees during the quarter.
HCLTech Q2 Profit and Revenue Show Strong Growth
HCLTech reported consolidated net profit of ₹5,132 crore for the July-September quarter, compared with ₹4,235 crore in the corresponding period last year.
On a sequential basis, net profit increased 11%, indicating an improvement over the June quarter.
Revenue from operations reached ₹35,620 crore, registering 12% annual growth and a 3% increase compared with the previous quarter.
In constant currency terms, revenue increased 2.3% quarter-on-quarter and 2.6% year-on-year.
The company’s earnings performance was supported by its services business, strong deal bookings and growing demand for advanced AI-driven technology solutions.
HCLTech Announces ₹12 Interim Dividend: Check Record Date
Along with its quarterly financial results, HCLTech’s board announced a second interim dividend of ₹12 per equity share for the financial year 2026-27.
According to the reported announcement, the company has fixed October 16, 2026, as the record date to determine shareholder eligibility.
The dividend payment is scheduled for October 26, 2026.
HCLTech Dividend Details
| Particulars | Details |
|---|---|
| Company | HCL Technologies Ltd |
| Financial Year | FY 2026-27 |
| Dividend Type | Second Interim Dividend |
| Dividend Amount | ₹12 per share |
| Record Date | October 16, 2026 |
| Payment Date | October 26, 2026 |
Investors should verify the official exchange announcement and applicable settlement requirements to confirm their dividend eligibility.
HCLTech EBIT Margin Improves to 18.2%
HCLTech reported earnings before interest and tax (EBIT) of ₹6,465 crore during the September quarter.
This compares with ₹5,831 crore in the previous quarter and ₹5,550 crore in the corresponding quarter last year.
The company’s EBIT margin improved to 18.2%, marking an increase of 131 basis points sequentially and 71 basis points year-on-year.
The reported operating margin also included an 84-basis-point impact from restructuring costs during Q2 FY27.
The improvement in operating profitability is an important development as IT companies continue to navigate changing client spending patterns and pressure on service pricing.
HCLTech FY27 Guidance: Company Maintains Margin Outlook
Despite uncertainty in the global technology spending environment, HCLTech retained its financial guidance for FY27.
Management expects the company’s EBIT margin to remain within the range of 17.5% to 18.5%.
The company also provided the following constant-currency revenue growth outlook:
| Guidance Parameter | FY27 Outlook |
|---|---|
| Company Revenue Growth | 2.5%–4% |
| Services Revenue Growth | 3%–4% |
| EBIT Margin | 17.5%–18.5% |
The unchanged guidance indicates that management continues to expect growth in its core services business while maintaining its focus on profitability.
HCLTech Segment Performance: Services Business Leads Growth
HCLTech’s services division delivered positive growth during the second quarter, supported by IT services and Engineering and R&D operations.
The overall services business grew 3% sequentially and 4% annually in constant currency.
Segment-Wise Revenue Growth
| Business Segment | QoQ Growth | YoY Growth |
|---|---|---|
| Services Business | 3.0% | 4.0% |
| IT and Business Services | 2.7% | 4.4% |
| Engineering and R&D | 4.1% | 2.0% |
| HCL Software | -5.8% | -11.0% |
Note: Growth figures are in constant currency.
While the services division performed well, HCL Software continued to face revenue pressure.
However, its EBIT margin improved to 20.1% from 17.6% in the previous quarter, reflecting stronger profitability despite lower revenue.
HCLTech AI Revenue Surges 78% to $219 Million
Artificial intelligence emerged as one of the major growth drivers for HCLTech during the September quarter.
The company’s advanced AI revenue reached $219 million, recording growth of 28.4% quarter-on-quarter and 78% year-on-year in constant currency.
This performance highlights growing enterprise demand for AI-powered transformation, automation and technology platforms.
HCLTech has been expanding its AI capabilities through strategic partnerships and investments across the technology ecosystem.
Chairperson Roshni Nadar Malhotra highlighted that the accelerating growth in advanced AI revenue supports the company’s long-term business strategy.
She also emphasised the importance of HCLTech’s AI investments and partnerships in strengthening its position as a technology partner for enterprises and governments.
HCLTech Reports $3.26 Billion in New Deal Wins
The company secured new deal bookings worth $3.26 billion during Q2 FY27.
CEO C Vijayakumar highlighted the strong quarterly performance, noting that first-half bookings reached a record level.
He also indicated that services growth remained positive across industries and geographical markets, while the company’s AI-led offerings continued to attract client interest.
Strong deal bookings are important for HCLTech because they provide visibility into potential future revenue, although actual revenue recognition depends on contract execution and delivery schedules.
Industry-Wise Performance: Retail and Financial Services Show Growth
HCLTech reported varying growth trends across its major industry verticals.
Financial Services remained the largest contributor to the services business, accounting for 22.4% of revenue. The segment recorded 7.1% year-on-year growth in constant currency.
Retail and Consumer Packaged Goods (CPG) emerged as the fastest-growing vertical, registering 14% annual growth.
HCLTech Industry Vertical Performance
| Industry Vertical | YoY Growth |
|---|---|
| Retail and CPG | +14.0% |
| Financial Services | +7.1% |
| Technology and Services | +5.9% |
| Manufacturing | +3.9% |
| Lifesciences and Healthcare | -2.1% |
| Telecommunications, Media, Publishing and Entertainment | -2.1% |
Note: Figures represent constant-currency growth.
The performance indicates that demand remained relatively strong in retail, financial services and manufacturing, while some other verticals continued to experience slower spending.
HCLTech Hiring Update: Company Adds 6,450 Employees
HCLTech also reported positive hiring activity during the September quarter.
The company’s total employee strength reached 230,339 at the end of September 2026, following net additions of 6,450 employees.
Of these, 6,136 were freshers, reflecting continued recruitment of entry-level technology professionals.
Meanwhile, the company’s last-twelve-month attrition rate increased marginally to 12.8%, compared with 12.7% in the June quarter.
HCLTech Cash Flow and Financial Position
The company’s cash generation remained healthy during Q2 FY27.
Net operating cash flow stood at ₹4,758 crore, while free cash flow reached ₹4,128 crore.
As of September-end, HCLTech reported gross cash of ₹25,457 crore and net cash of ₹24,503 crore.
These figures provide additional insight into the company’s liquidity and ability to support business investments, shareholder distributions and future expansion.
What Do HCLTech Q2 Results Mean for Investors?
HCLTech’s second-quarter performance highlights several important developments for investors tracking the Indian IT sector.
Revenue and profitability improved on both annual and sequential bases, while operating margins strengthened during the quarter.
Additionally, the sharp rise in advanced AI revenue and new deal bookings suggests growing opportunities in enterprise technology transformation.
However, investors should also consider the weakness in HCL Software revenue, global IT spending trends, client budgets and the potential impact of automation on traditional IT services.
The company’s ability to convert new bookings into sustainable revenue and maintain its operating margin will remain important factors to monitor in the coming quarters.
Conclusion
HCLTech delivered a strong Q2 FY27 performance, reporting a 21% increase in consolidated net profit to ₹5,132 crore and a 12% rise in revenue to ₹35,620 crore.
The announcement of a ₹12 interim dividend, improved operating margins, strong deal bookings and rapid growth in AI revenue were among the key highlights of the quarterly results.
With its FY27 guidance unchanged, the company’s future performance will depend on continued services growth, execution of new contracts and its ability to capitalise on rising demand for AI-driven solutions.
Disclaimer: This article is intended for informational and educational purposes only. It does not constitute investment advice or a recommendation to buy or sell securities. Stock market investments involve financial risks. Investors should consult a SEBI-registered investment adviser before making investment decisions.
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