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HCLTech kicked off the FY26 earnings season on a steady note, reporting a 7.6 per cent year-on-year rise in net profit at Rs 4,239 crore for the quarter ended June 2025. The company’s bottom line was broadly in line with Street expectations, signalling resilience amid global tech spending moderation.
Revenue for the quarter stood at Rs 28,169 crore, up 5.5 per cent YoY, while EBIT came in at Rs 5,300 crore, translating to an operating margin of 18.8 per cent, marginally lower on a sequential basis but within the guided range.
Key financial highlights (Q1FY26)
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Net profit: Rs 4,239 crore, up 7.6% YoY
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Revenue: Rs 28,169 crore, up 5.5% YoY
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EBIT margin: 18.8% vs 19.2% QoQ
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EPS: Rs 15.61 vs Rs 14.46 YoY
Dividend announcement
The board of directors declared an interim dividend of Rs 12 per share, with the record date set as July 22, 2025. The dividend will be paid out on or before August 5, 2025, the company informed in its exchange filing.
Vertical-wise performance and deal wins
Growth during the quarter was driven by strength in Life Sciences, Energy & Utilities, and Financial Services verticals. The IT services segment, which forms the bulk of HCLTech’s business, maintained a healthy deal pipeline.
The company reported new deal wins worth $2.3 billion, slightly lower compared to the previous quarter, but management remains optimistic about deal conversions picking up in the second half of FY26.
Outlook for FY26:
HCLTech has retained its FY26 constant currency revenue growth guidance at 4.0- 6.0 per cent, and EBIT margin guidance at 18–19 per cent. The company noted that while discretionary spending remains tight in some geographies, cost optimisation and AI-led transformation deals are expected to drive incremental growth.
CEO C Vijayakumar said, “We are seeing increased client interest in GenAI and digital transformation. Our strong order book and robust client relationships position us well for the coming quarters.”
Stock performance and valuation
HCLTech shares closed at Rs 1,465 on Monday, down 0.7 per cent ahead of the results. The stock has gained nearly 16 per cent over the past one year, outperforming most of its large-cap IT peers except TCS.
Brokerage houses are expected to revisit their earnings estimates post the Q1 print. While margin stability and dividend payouts support sentiment, analysts may closely watch deal flow momentum in upcoming quarters.
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