HCL Tech Q2 Results: Profit jumps 21% YoY to Rs 5,132 crore; co declares Rs 12/share dividend

IT services major HCL Tech on Monday reported 21% year-on-year (YoY) growth in its consolidated net profit at Rs 5,132 crore for the second quarter of FY27. The same stood at Rs 4,235 crore a year ago. The company's board also declared a second interim dividend of Rs 12 per share for the financial year 2026-27.

The record date for the payment of the interim dividend will be October 16 and the payment date is October 26, 2026.

Revenue from operations in the reporting period increased 12% YoY to Rs 35,620 crore.


Sequentially, revenue grew 3%, while net profit rose 11%. In constant currency terms, revenue increased 2.3% quarter-on-quarter and 2.6% year-on-year. The company reported EBIT margin of 18.2%, up 131 basis points from the June quarter and 71 basis points from a year earlier.

The quarterly print was led by growth in services, strong bookings and rising traction in advanced AI-led work. New deal wins stood at $3.26 billion for the quarter.

EBIT stood at Rs 6,465 crore, compared with Rs 5,831 crore in the previous quarter and Rs 5,550 crore a year earlier. The company said EBIT margin included an 84 basis point impact from restructuring costs in Q2 FY27.

Guidance

The company retained its FY27 EBIT margin guidance at 17.5-18.5%. It guided for constant-currency revenue growth of 2.5-4% for the company and 3-4% for services.

Segment performance

The services business, which includes IT and Business Services and Engineering and R&D, grew 3% sequentially in constant currency and 4% from a year earlier. IT and Business Services grew 2.7% sequentially and 4.4% YoY in constant currency, while Engineering and R&D grew 4.1% QoQ and 2% YoY.

HCL Software remained weak on revenue, declining 5.8% sequentially and 11% YoY in constant currency. However, its EBIT margin improved to 20.1% from 17.6% in the June quarter.

HCL Tech's advanced AI revenue stood at $219 million, rising 28.4% quarter-on-quarter and 78% YoY in constant currency. The company has been highlighting AI-led transformation, automation and platform-led work as major growth areas at a time when the IT services industry is dealing with slower discretionary spending and pricing pressure from automation.

Chairperson Roshni Nadar Malhotra said the accelerating growth in advanced AI revenue validates the company’s business strategy. She said HCL Tech's partnerships and investments across the AI stack position it as a trusted technology partner for enterprises and governments.

CEO C Vijayakumar said the company delivered a strong quarter with new bookings of $3.3 billion, taking first-half bookings to a record high. He said services grew across verticals and geographies, while AI propositions are resonating well with clients.

Among verticals, financial services remained the largest segment in the services business, contributing 22.4% of revenue and growing 7.1% YoY in constant currency. Retail and CPG was the fastest-growing vertical, rising 14%. Technology and Services grew 5.9%, while Manufacturing rose 3.9%. Lifesciences and Healthcare, and Telecommunications, Media, Publishing and Entertainment, declined 2.1% each.

The company’s headcount stood at 230,339 at the end of September, with net additions of 6,450 during the quarter. HCL Tech added 6,136 freshers, while last-twelve-month attrition rose marginally to 12.8% from 12.7% in the June quarter.

Cash generation remained steady. Net operating cash flow for the quarter stood at Rs 4,758 crore, while free cash flow was Rs 4,128 crore. Gross cash stood at Rs 25,457 crore and net cash at Rs 24,503 crore as of September-end.