HCL Tech Q1 Results: Profit rises 20% YoY to Rs 4,624 crore; co declares Rs 12 dividend

IT services company HCL Tech reported a 20% year-on-year (YoY) growth in its consolidated net profit at Rs 4,624 crore in the first quarter of FY27. The same stood at Rs 3,843 crore in the last year quarter.

The company's Board has also declared an interim dividend of Rs 12 per share and fixed July 17 as the record date.

Revenue from operations in the reporting June quarter increased 13% YoY to Rs 34,579 crore as against Rs 30,349 crore in the corresponding quarter of previous year.


In dollar terms, revenue stood at $3.65 billion, down 0.9% quarter-on-quarter but up 3% YoY. Constant currency revenue declined 0.5% sequentially and grew 2.6% from a year earlier. The company’s services revenue fell 0.7% quarter-on-quarter in constant currency and rose 3.5% year-on-year.

EBIT stood at Rs 5,831 crore, up from Rs 4,942 crore a year earlier and Rs 5,620 crore in the March quarter. EBIT margin came in at 16.9%, up 39 basis points sequentially and 56 basis points year-on-year. HCL Tech said the Q1 EBIT margin included a restructuring cost impact of 62 basis points. Excluding this, EBIT margin stood at 17.5%. Net income margin was 13.4%, or 13.8% excluding restructuring costs.

The company declared a dividend of Rs 12 per share. Diluted earnings per share stood at Rs 66.90 on a last-12-months basis, up 6.9% year-on-year.

HCL Tech reported new deal bookings of $2.41 billion, its highest-ever Q1 net-new bookings. Advanced AI revenue stood at $171 million, growing 10.6% quarter-on-quarter and 62.1% year-on-year in constant currency terms.

CEO and MD C Vijayakumar said the company recorded its highest-ever Q1 net-new bookings of $2.4 billion and strong growth in its advanced AI business. “These demonstrate that enterprises are choosing us to lead their AI-led transformation,” he said.

Chairperson Roshni Nadar Malhotra said AI was accelerating transformation for global enterprises and opening new growth areas for the company. She said HCLTech was focused on upskilling employees in emerging technologies and embedding AI across the organisation.

The company retained its FY27 constant currency guidance. It expects company revenue growth of 1-4% year-on-year in constant currency, services revenue growth of 1.5-4.5%, and EBIT margin of 17.5-18.5%.

Among segments, IT and Business Services accounted for 75.3% of revenue and grew 4.2% year-on-year in constant currency. Engineering and R&D Services contributed 16.5% of revenue and grew 0.3%. HCLSoftware made up 8.6% of revenue but declined 5.3% year-on-year in constant currency.

By vertical, financial services remained the largest segment at 22.1% of services revenue, growing 5.3% in constant currency. Manufacturing grew 3.7%, technology and services rose 7.3%, retail and CPG grew 10.1%, and public services rose 12%. Telecommunications, media, publishing and entertainment declined 10.9%.