HCLTech net profit jumps 20% to Rs 4,624 crore in June quarter

HCLTech net profit jumps 20% to Rs 4,624 crore in June quarter

HCL Technologies reported a consolidated net profit of Rs 4,624 crore for the first quarter of FY27, representing a 20% year-on-year increase. The results, announced Monday, 13 July 2026, beat market estimates of Rs 4,588 crore.

Revenue from operations for the June quarter climbed 14% year-on-year to Rs 34,579 crore, compared to Rs 30,349 crore in the same period last year. On a sequential basis, revenue rose 1.8% from Rs 33,981 crore in Q4FY26. Net profit also saw a 3% sequential increase from the Rs 4,490 crore reported in the previous quarter.

The company's board declared an interim dividend of Rs 12 per share for the financial year.

Record Bookings and AI Growth

Growth was supported by the highest ever Q1 net-new bookings, totaling $2,407 million. This momentum was paired with a surge in advanced AI revenue, which grew 62.1% year-on-year and 10.6% sequentially in constant currency terms to reach $171 million.

"We recorded our highest-ever Q1 net-new bookings of $2.4 billion, and our advanced AI business grew 10.6% QoQ and 62.1% YoY in constant currency terms. These demonstrate that enterprises are choosing us to lead their AI-led transformation,"

C Vijayakumar, CEO and Managing Director, HCL Tech, via Live Mint

Vijayakumar added that operational efficiencies in margin expansion provide confidence that the firm is positioned to outpace the market over the medium term.

Segment and Geographic Performance

The IT and business services segment remained the largest contributor, accounting for 75.1% of total revenue and growing 4.2% year-on-year in constant currency. Engineering and R&D contributed 16.4% of revenue with a 0.3% increase, while HCL Software, representing 8.5% of the revenue mix, declined 5.3%.

Vertical performance varied significantly:

• Public Services: Increased 12% (9.3% revenue mix).
• Retail and CPG: Jumped 10.1% (10.3% revenue mix).
• Technology and Services: Grew 7.3% (14.4% revenue mix).
• Financial Services: Rose 5.3% (22.1% revenue mix).
• Manufacturing: Increased 3.7% (18.7% revenue mix).
• Lifesciences and Healthcare: Increased 0.4% (14% revenue mix).
• Telecom, Media, Publishing, and Entertainment: Decreased 10.9% (11.2% revenue mix).

Geographically, the US remains the primary market with a 56% revenue mix and 2.9% growth in constant currency. The Indian market saw the highest growth rate at 16.9%, though it accounts for only 3.3% of the mix. Revenue from Europe (27.6% mix) grew 0.1%, while the rest of the world (13.1% mix) grew 10.8%.

Margins and Workforce

The EBIT margin for the quarter stood at 16.9%, an increase of 39 basis points sequentially and 56 basis points year-on-year. This figure includes a 62 basis points impact from restructuring costs.

Strategic Acquisitions and Future Guidance

Following these results, the company updated its FY27 guidance, now projecting constant currency revenue growth between 1.0% and 4.0%. The company maintained an EBIT margin of 16.9% for the period.