HCL Technologies Limited (HCLTECH)
₹1,380.00 +1.47% last close, 16 Oct
Q2 FY27 results
HCL Technologies Limited reported Q2 FY27 results on 12 Oct 2026: revenue ₹35,620 Cr (+11.5% year on year, +3.0% on the previous quarter), and net profit ₹5,132 Cr (+21.2% year on year); the operating margin was 21.0%.
| Q2 FY27 (₹ Cr) | Value | YoY vs Q2 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹35,620 | +11.5% | +3.0% |
| Operating profit | ₹7,477 | +14.2% | +8.8% |
| Net profit | ₹5,132 | +21.2% | +10.9% |
| EPS (₹) | 18.96 | +21.3% | +10.9% |
| Operating margin | 21.0% | — | — |
- Profit +19% above its own trend
- Ahead of management's FY27 revenue growth guidance of 2.5–4% (H1 FY27 +12.7%)
- Ahead of management's FY27 EBITDA margin guidance of 17.5–18.5% (H1 FY27 20.4%)
Quality of profit: of pre-tax profit of ₹6,467 Cr, ₹6,271 Cr (97%) came from the core business and the rest from other income and one-off items. Core profit (operating profit less interest and depreciation) moved +18.6% year on year.
Against its own trend: net profit of ₹5,132 Cr was +18.7% against the ₹4,324 Cr its recent growth pointed to (above trend). This is a statistical baseline, not an analyst estimate.
Against management's guidance: FY27 revenue growth was guided at 2.5–4% (earnings call of 15 Oct 2026); H1 FY27 came in at +12.7%, ahead of it.
Against management's guidance: FY27 EBITDA margin was guided at 17.5–18.5% (earnings call of 15 Oct 2026); H1 FY27 came in at 20.4%, ahead of it.
Share price since the results: +12.8% (close before the filing to the latest close).
HCLTECH delivery percentage and open interest
NSE end-of-day data for
On Fri, 16 Oct 2026, 52.62% of the HCLTECH shares traded on NSE were taken to delivery, against the stock's own 20-session average of 47.2%. That is close to its usual level. In HCLTECH futures, open interest fell 0.49% while the futures price rose 1.89%: short covering (shorts closing out).
Delivery in the last 5 sessions: 33.9% · 30.7% · 56.3% · 47.0% · 52.6%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
HCL Technologies announced that its Nomination and Remuneration Committee has granted 56,504 Restricted Stock Units (RSUs) to 72 eligible employees under its RSU Plan 2021. The grant represents approximately 0.002% of the paid-up equity share capital. The scheme operates via a trust mechanism through secondary market share purchases, resulting in zero equity dilution or fresh share issuance. The units vest on October 31, 2027, with an exercise price of Rs 2 per unit.
- 56,504 RSUs granted to 72 eligible employees under RSU Plan 2021
- Units represent 0.002% of the company's paid-up equity share capital
- Zero dilution to equity share capital as shares will be purchased via secondary market trust mechanism
- Vesting date set for October 31, 2027, at an exercise price of Rs 2 per unit
- 14,130 RSUs cancelled under RSU Plan 2024 and vesting date for 7,252 RSUs corrected to July 31, 2027
HCL Technologies released the transcript of its Q2 FY27 earnings conference call held on October 12, 2026. The company reported overall revenue growth of 2.3% QoQ and 2.6% YoY in constant currency, supported by Services growing 3% QoQ. Advanced AI revenue expanded 78% YoY to reach $219 million ($876 million annualized run-rate), while new deal bookings rose 27% YoY to $3.3 billion. EBIT margins expanded 131 bps QoQ to 18.2%, offset slightly by software revenue declining 5.8% QoQ, though HCLSoftware ARR increased 7.8% YoY to $1.134 billion.
- New deal bookings reached $3.3 billion, marking a 27% YoY and 35% QoQ increase.
- Advanced AI revenue jumped 78% YoY and 28.4% QoQ to $219 million (annualized run-rate of $876 million).
- EBIT margin improved 131 bps QoQ and 71 bps YoY to 18.2%, ahead of internal expectations.
- Services revenue rose 3% QoQ and 4% YoY in constant currency, while overall revenue grew 2.3% QoQ.
- Total headcount increased by 6,450 QoQ to 230,339, with LTM attrition at 12.8%.
HCL Technologies announced an interim dividend of ₹12 per equity share of face value ₹2 each for FY 2026-27. The board set October 16, 2026, as the record date and scheduled payment for October 26, 2026. This announcement comes alongside the approval of unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026.
- Interim dividend declared at ₹12 per equity share of face value ₹2 each for FY 2026-27
- Record date set as October 16, 2026
- Dividend payment date scheduled for October 26, 2026
- Board approved unaudited standalone and consolidated results for Q2 ended September 30, 2026
HCL Technologies reported its condensed consolidated interim IFRS results for the quarter ended September 30, 2026, with revenue rising 2.2% YoY to $3,724 million compared to $3,644 million in Q2 FY26. Consolidated net profit attributable to owners increased 10.7% YoY to $538 million from $486 million, driven by strong performance in IT and Business Services segment results ($523 million vs $441 million YoY). For the six-month period, revenue stood at $7,374 million with net profit reaching $1,026 million. Additionally, the Board declared an interim dividend of ₹12 per share at its meeting on October 12, 2026.
- Q2 revenue reached $3,724 million, up 2.2% YoY from $3,644 million in Q2 FY26
- Net profit grew 10.7% YoY to $538 million (Basic EPS at $0.20 per share)
- Operating profit improved to $677 million from $637 million in the year-ago period
- IT & Business Services EBIT rose to $523 million, while HCL Software EBIT declined to $59 million (vs $88 million YoY)
- Board declared an interim dividend of ₹12 per equity share on October 12, 2026
HCL Technologies reported a 11.5% YoY rise in consolidated revenue to ₹35,620 crore ($3,724M) for Q2 FY27, up 3.0% QoQ. Net income reached an all-time high of ₹5,132 crore, advancing 21.2% YoY and 11.0% QoQ, with EBIT margins expanding 131 bps QoQ to 18.2%. The company secured $3,258 million in new deal bookings and declared an interim dividend of ₹12 per share. FY27 revenue growth guidance was pegged at 2.5% to 4.0% YoY in constant currency, with EBIT margin projected between 17.5% and 18.5%.
- Revenue grew 11.5% YoY (3.0% QoQ) to ₹35,620 crore, or 2.6% YoY CC
- Net income climbed 21.2% YoY and 11.0% QoQ to a record ₹5,132 crore
- EBIT margin expanded 131 bps QoQ and 71 bps YoY to 18.2%
- New deal wins stood at $3,258 million, up 27% YoY
- Board declared an interim dividend of ₹12 per share
HCL Technologies announced an interim dividend of ₹12 per equity share of face value ₹2 each for FY 2026-27. The board set October 16, 2026, as the record date and scheduled payment for October 26, 2026. This announcement comes alongside the approval of unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026.
- Interim dividend declared at ₹12 per equity share of face value ₹2 each for FY 2026-27
- Record date set as October 16, 2026
- Dividend payment date scheduled for October 26, 2026
- Board approved unaudited standalone and consolidated results for Q2 ended September 30, 2026
HCL Technologies announced an interim dividend of ₹12 per equity share of face value ₹2 each for FY 2026-27. The board set October 16, 2026, as the record date and scheduled payment for October 26, 2026. This announcement comes alongside the approval of unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026.
- Interim dividend declared at ₹12 per equity share of face value ₹2 each for FY 2026-27
- Record date set as October 16, 2026
- Dividend payment date scheduled for October 26, 2026
- Board approved unaudited standalone and consolidated results for Q2 ended September 30, 2026
HCLTech has entered into a Global Premier Partnership with Anthropic to accelerate enterprise adoption of governed Agentic AI. As part of the tie-up, HCLTech will establish a dedicated Anthropic Business Unit and Centre of Excellence, while integrating Claude models into its AIForce platform. In addition, HCLSoftware becomes an Anthropic ISV partner, embedding Claude and Claude Code into security and automation products such as HCL BigFix and HCL AppScan. No specific commercial deal value or revenue commitments were disclosed in the filing.
- Global Premier Partnership signed with Anthropic on October 12, 2026
- Establishes a dedicated Anthropic Business Unit and Centre of Excellence (CoE)
- HCLSoftware becomes an ISV partner embedding Claude into products like HCL BigFix and HCL AppScan
- Consolidated revenue referenced at $14.8 billion for the 12 months ending June 2026 (TTM revenue ₹134,374 Cr)
HCL Technologies announced the rollout of 20 purpose-built Industry AI Solutions (IAIS) aimed at driving its Advanced AI offerings. The solutions target banking, life sciences, manufacturing, aerospace, and retail, with several platforms already deployed at scale globally. Reported outcomes include a 70% cut in operational costs via its VisionX platform and a 60% reduction in invoice processing cycle times with Autonomous Accounts Payable. The launch reinforces HCLTech's strategy to expand high-margin Advanced AI revenue, which previously crossed $100M per quarter.
- Rolled out 20 purpose-built Industry AI Solutions (IAIS) across global verticals
- VisionX AI platform reported operational cost reductions of 70% and response time improvements of over 90%
- SmartTwin delivers up to 44% faster time-to-market for new manufacturing products
- Intelligent Safety Platform reduced pharmacovigilance case-processing time by 40-50%
- Consolidated revenue for the 12 months ending June 2026 stood at $14.8 billion across 223,000+ employees
HCLTech has expanded its presence in South Africa by opening a new regional headquarters in Sandton, Johannesburg, which features an AI Center of Excellence. The facility will showcase full-stack AI solutions, serve as a regional training hub, and support local enterprise transformation. Over FY21-FY25, the company supported nearly 500 learners in South Africa, with nearly 50 joining full-time, and impacted over 20,000 beneficiaries via digital literacy initiatives. Financial investment numbers for the facility were not disclosed.
- Launched new regional headquarters in Sandton, Johannesburg with an AI Center of Excellence
- Supported nearly 500 learners over FY21-FY25, with nearly 50 participants hired in full-time roles
- Positively impacted more than 20,000 beneficiaries across South Africa via ICT and digital literacy programs
- Consolidated revenues for the 12 months ending June 2026 stood at $14.8 billion (TTM revenue ~₹134,374 Cr)
Marking 10 years of operations at its Lucknow facility, HCL Group announced a planned expansion outlay of ₹500 crore for HCL IT City. The expansion will add up to 9.5 lakh sq ft of fresh capacity to accommodate 4,500 technology professionals. The Lucknow campus currently employs over 12,500 people and serves more than 150 global enterprises. Relative to HCLTech's TTM revenue of ₹134,374 crore, the ₹500 crore outlay represents ~0.37%, making it a modest, incremental infrastructure investment.
- HCL Group announced a planned investment of ₹500 crores for HCL IT City expansion
- Expansion will add up to 9.5 lakh sqft of capacity to house 4,500 technology professionals
- Campus currently employs over 12,500 people and serves more than 150 global enterprises
- Announced an AI upskilling initiative to train 1,000 students across Uttar Pradesh via LITMUS in FY27
HCLTech's software division, HCLSoftware, has agreed to acquire a 100% equity stake in Croatia-based Robotic Process Automation d.o.o. ('Robotiq.ai') at an Enterprise Value of EUR 9 million (~Rs 80-85 cr). The acquisition will be executed via HCL Technologies Austria GmbH for an all-cash consideration and is expected to close by late November 2026. Robotiq.ai reported a revenue of EUR 1.4 million and a PAT of EUR 0.2 million for CY2025. Financially, this is a bolt-on tech acquisition, representing less than 0.1% of HCLTech's TTM revenue of Rs 134,374 cr.
- Enterprise Value of EUR 9 million, subject to customary net debt and working capital adjustments
- Target reported CY2025 revenue of EUR 1.4 million and PAT of EUR 0.2 million
- 100% equity stake acquired via cash consideration through HCL Technologies Austria GmbH
- Deal completion targeted by the end of November 2026 with no regulatory approvals required
HCLTech's software division, HCLSoftware, has agreed to acquire a 100% equity stake in Croatia-based Robotic Process Automation d.o.o. ('Robotiq.ai') at an Enterprise Value of EUR 9 million (~Rs 80-85 cr). The acquisition will be executed via HCL Technologies Austria GmbH for an all-cash consideration and is expected to close by late November 2026. Robotiq.ai reported a revenue of EUR 1.4 million and a PAT of EUR 0.2 million for CY2025. Financially, this is a bolt-on tech acquisition, representing less than 0.1% of HCLTech's TTM revenue of Rs 134,374 cr.
- Enterprise Value of EUR 9 million, subject to customary net debt and working capital adjustments
- Target reported CY2025 revenue of EUR 1.4 million and PAT of EUR 0.2 million
- 100% equity stake acquired via cash consideration through HCL Technologies Austria GmbH
- Deal completion targeted by the end of November 2026 with no regulatory approvals required
HCLTech has launched a synthetic research report titled 'Hidden In Pl(AI)n Sight' targeting the global wealth management industry. The report surveyed 1,066 AI personas across 17 global markets and was conducted in partnership with Evidenza. It highlighted that 84% of wealth management firms acknowledge the need to redesign operating models, while only slightly more than 7% are building agentic AI capabilities. This release represents a thought-leadership and marketing initiative with no immediate direct financial impact.
- Survey modeled on 1,066 representative AI personas across 17 global markets
- Finds 84% of global wealth management firms see a need for operating model redesign
- Notes 98% of leadership teams are pursuing an AI agenda, but only ~7% are actively building agentic AI capabilities
- Only 12% of surveyed leaders are measuring new revenue produced by redesign
HCLTech has secured a digital transformation deal with UK and Ireland essential infrastructure services provider M Group. Under the agreement, HCLTech will deploy its AI Force platform to modernize IT operations and managed services across more than 200 locations. The specific contract value and duration were not disclosed. HCLTech reported consolidated revenues of $14.8 billion (TTM revenue ~Rs 134,374 crore), making individual non-quantified deals incremental to business operations.
- Selected by M Group to modernize IT operations across 200+ locations in the UK and Ireland
- Deployment of proprietary AI Force service transformation platform for infrastructure and end-user operations
- Deal value and execution tenure were not disclosed in the filing
- HCLTech consolidated revenues for the 12 months ending June 2026 stood at $14.8 billion
Financial Performance
Revenue Growth by Segment
In Q2 FY26, HCLTech's Services segment grew 5.5% YoY in constant currency (CC), driven by IT and Business Services (ITBS) at 3.8% YoY CC and Engineering and R&D Services (ERS) at 13.4% YoY CC. HCLSoftware revenue declined 3.7% YoY CC due to lower perpetual license revenue, though its Subscription and Support revenue grew 8.0% YoY CC.
Geographic Revenue Split
HCLTech derives more than 90% of its revenues from exports, primarily to North America and Europe. While specific regional percentages for Q2 FY26 were not detailed, the company noted that North America and Europe are key markets currently facing macroeconomic headwinds that have moderated discretionary IT spending.
Profitability Margins
For Q2 FY26, the EBIT margin stood at 17.5%, a 116 bps improvement QoQ but a 112 bps decline YoY. Net Income margin was 13.3%. The Services segment EBIT margin was 16.5% (up 88 bps QoQ), while HCLSoftware EBIT margin was 26.5% (up 408 bps QoQ).
EBITDA Margin
Operating Profit Margin (OPM) was 21.8% for FY2025 and 19.9% in Q1 FY2026. The moderation from 22% in FY2024 was primarily due to wage hikes, lower utilization levels, and higher marketing costs. Interest coverage remains robust at 39.6 times as of FY2025.
Capital Expenditure
HCLTech follows an asset-light approach with minimal CAPEX requirements. This strategy supports a high free cash flow conversion rate, which averaged 127% over the last five years (FCF/NI). Specific INR Cr CAPEX figures for the current quarter were not disclosed.
Credit Rating & Borrowing
The company maintains a superior credit profile with a gearing of 0.1 times and Total Debt/OPBITDA of 0.2 times for FY2025. Total borrowings as of September 2025 were INR 2,359 Crores ($265M), resulting in a negative net debt position due to gross cash of INR 31,570 Crores ($3,555M).
Operational Drivers
Raw Materials
As an IT services firm, HCLTech's primary 'raw material' is human capital (talent). Employee costs represent the largest expense. Attrition was 12.8% on a Last Twelve Month (LTM) basis in Q2 FY26. Other operational costs include software IP licenses and cloud infrastructure.
Import Sources
Talent is sourced globally across 60 countries, with significant delivery centers in India, the US, Europe, and 'New Vistas' locations (nearshore/emerging hubs).
Key Suppliers
Not applicable as a traditional manufacturing model; however, the company partners with major hyperscalers (AWS, Azure, Google Cloud) and hardware/software OEMs for service delivery.
Capacity Expansion
Expansion is measured by headcount and delivery centers. HCLTech employs over 226,600 people. The company is expanding its 'New Vistas' and nearshore presence to access global talent and build service-delivery resilience.
Raw Material Costs
Employee wage revisions are a major cost driver. The Q3 FY26 wage cycle is expected to impact margins by 70-80 bps, with an incremental 40-50 bps impact in Q4 FY26. Project Ascend (efficiency program) helped offset costs by providing a 50 bps gain through higher utilization in Q2 FY26.
Manufacturing Efficiency
Efficiency is tracked via employee utilization. Project Ascend contributed 50 bps to margin improvement in Q2 FY26 by optimizing workforce deployment.
Logistics & Distribution
Not applicable; service delivery is primarily digital and remote via global networks.
Strategic Growth
Expected Growth Rate
3-5%
Growth Strategy
Growth is driven by a 4-5% CC guidance in the Services segment, fueled by AI and Digital transformation. The strategy includes expanding 'Advanced AI' (which crossed $100M in quarterly revenue), increasing HCLSoftware's Annual Recurring Revenue (ARR) which stands at $1.06B, and executing a robust deal pipeline ($1.8B in Q1 FY26).
Products & Services
AI and GenAI solutions, Digital transformation services, Engineering and R&D (ER&D) services, Cloud services, Cybersecurity, and HCLSoftware products (Subscription, Support, and Professional Services).
Brand Portfolio
HCLTech, HCLSoftware, Project Ascend (internal efficiency brand).
New Products/Services
Advanced AI offerings (now contributing >$100M/quarter) and CTG assets acquired from HPE, which are expanding the telecom client base.
Market Expansion
Expansion into 'New Vistas' (emerging geographies) and nearshore locations to diversify the delivery model and access new talent pools.
Market Share & Ranking
HCLTech is a global leader in IT services; revenue growth of 4.7% in FY2025 was noted as being higher than most key industry peers.
Strategic Alliances
Collaborations with global advisors, clients, partners, and governments; specific recent acquisition of CTG assets from HPE to bolster telecom capabilities.
External Factors
Industry Trends
The industry is shifting toward AI-centric capital allocation. HCLTech is positioning itself by embedding AI into major deals and transitioning its software business to a subscription-based model (ARR at $1.06B).
Competitive Landscape
Faces intense competition from traditional IT service providers, management consulting firms, and emerging Global Capability Centers (GCCs).
Competitive Moat
Moat is built on deep engineering heritage (ERS segment grew 13.4% YoY), a strong G2000 client base, and a high ROIC (38.6% overall, 45.3% in Services), which indicates superior capital efficiency compared to peers.
Macro Economic Sensitivity
Highly sensitive to US and European GDP growth and corporate discretionary spending. Macro headwinds in these regions led to a moderation of revenue growth to 4.6% YoY CC in Q2 FY26.
Consumer Behavior
Clients are shifting from discretionary 'big-bang' projects to cost-optimization and AI-integrated long-term service contracts.
Geopolitical Risks
Exposure to changes in US immigration laws and trade policies (e.g., tariffs) which can increase competition for skilled workforce and raise operational costs.
Regulatory & Governance
Industry Regulations
Subject to global data privacy laws and immigration regulations (H1-B/L1 visas in the US). Compliance with ISO 31000:2018 and COSO ERM standards for risk management.
Taxation Policy Impact
The company applies specific tax rates to HCLSoftware units/entities, with residual tax allocated to the Services business. Payout ratio was 93.5% in FY25.
Legal Contingencies
The company maintains insurance policies to mitigate potential liabilities from data breaches or material lapses in managing customer data, though specific pending case values were not disclosed.
Risk Analysis
Key Uncertainties
GenAI poses both a threat to existing business models and an opportunity for new services. Macroeconomic headwinds in key markets remain the primary uncertainty for near-term revenue visibility.
Geographic Concentration Risk
High concentration in North America and Europe (over 90% of revenue from exports).
Third Party Dependencies
Dependency on hyperscalers and technology partners for delivering integrated digital solutions.
Technology Obsolescence Risk
Risk of inability to keep up with fast-paced technological changes (e.g., GenAI). Mitigated by the Strategic Risk & Opportunity Management (SROM) framework.
Credit & Counterparty Risk
Low risk given the high quality of the G2000 client base and strong cash conversion (125% FCF/NI).
