HCL Tech Q1 results: HCL Technologies on Monday, 13 July, reported a 20.34% year-on-year (YoY) rise in its consolidated net profit to ₹4,626 crore for the April-June quarter of the current financial year (Q1FY27). In the same quarter last year, the company’s profit was ₹3,844 crore.
Sequentially, or quarter-on-quarter (QoQ), HCL Tech’s profit increased by 3% from ₹4,490 crore in Q4FY26.
Revenue from operations for the June quarter increased by 14% YoY and 1.8% QoQ to ₹34,579 crore. In Q4FY26, the IT company’s revenue was ₹33,981 crore, and in Q1FY26, it was ₹30,349 crore.
Total comprehensive income for the quarter, attributable to owners of the company, stood at ₹4,689 crore, down 13.2% QoQ and 7.2% YoY. In Q4FY26, HCL Tech’s total comprehensive income was ₹5,402 crore, and in Q1FY26, it was ₹5,055 crore.
HCL Tech Q1FY27 results: Key takeaways
1. The key numbers
In constant currency (CC), HCL Tech’s Q1 revenue saw a nominal 0.5% QoQ and 2.6% YoY rise.
EBIT margin, including the impact of restructuring cost of 62 basis points (bps), climbed 39 bps QoQ and 56 bps YoY to 16.9%.
2. Performance of key segments, verticals, geographies
The IT and business services segment, which accounts for 75.1% of total revenue, rose by 4.2% YoY in CC, with EBIT for the segment at 17%.
Engineering and R&D contributed 16.4% of the revenue and witnessed 0.3% YoY rise in CC. HCL Software, with 8.5% revenue mix, declined 5.3% YoY in CC.
Among the verticals, financial services had the highest revenue mixat 22.1%. This segment saw a 5.3% YoY rise in revenue in CC.
Revenue from manufacturing (18.7% revenue mix) increased by 3.7%, from technology and services (14.4% revenue mix) grew by 7.3%, from lifesciences and healthcare (14% revenue mix) saw a nominal increase of 0.4%, from retail and CPG (10.3% revenue mix) jumped 10.1%, and from public services, which includes energy and utilities, transport, logistics and government (9.3% revenue mix) increased 12% YoY in CC.
Revenue from telecommunications, media, publishing and entertainment (11.2% revenue mix) decreased by 10.9% YoY in CC.
By geography, revenue mix from the US was 56%, and it increased by 2.9% YoY in CC. Revenue from Europe, with a mix of 27.6%, increased by 0.1% YoY, and the rest of the world (revenue mix of 13.1%) grew by 10.8% YoY in CC.
Revenue from the Indian market, with a mix of 3.3%, increased by 16.9% YoY in CC.
3. New deal wins
HCL Tech’s new deal wins in Q1FY27 were the highest ever at $2,407 million. Advanced AI revenue increased by 10.6% QoQ and 62.1% YoY in CC to $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,” said C Vijayakumar, CEO and Managing Director, HCL Tech.
“Combined with the operational efficiencies visible in margin expansion, this momentum gives us the confidence we’re positioned to keep outpacing the market over the medium term,” said Vijayakumar.
4. Dividend
HCL Tech announced its board has recommended an interim dividend of ₹12 per equity share. The company has also set Friday, 17 July, as the record date to determine shareholders eligible for the dividend. The payout will be made on Monday, 27 July, as per the company’s earnings filing.
5. FY27 guidance
The company did not make any changes to its guidance for FY27. It continues to expect a revenue growth of 1% – 4% YoY in CC in FY27. The services segment’s revenue is expected to rise by 1.5% – 4.5% in CC. EBIT margin is likely to see a 17.5% – 18.5% YoY rise in CC in FY27.
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