HCL Technologies reported a strong Q1 FY27 performance, with double-digit growth in revenue and profit, record deal wins and robust AI-led business momentum. The company also maintained its FY27 guidance and announced an interim dividend of ₹12 per share.
HCL Technologies reported a strong performance for the June quarter (Q1 FY27), beating market expectations on revenue, profit and margins. The IT major retained its FY27 growth and margin guidance, while announcing an interim dividend of ₹12 per equity share.
The company’s consolidated net profit increased 20.3% year-on-year (YoY) to ₹4,624 crore compared with ₹3,843 crore in the same quarter last year. Revenue from operations rose 13.9% YoY to ₹34,579 crore from ₹30,349 crore a year ago.
In dollar terms, revenue stood at $3.65 billion, declining 0.9% sequentially but growing 3% YoY in constant currency terms. Constant currency revenue declined 0.5% quarter-on-quarter (QoQ), better than analyst expectations of a 1% decline.
Strong Deal Wins and AI Growth Support Performance
HCL Tech reported its highest-ever first-quarter net new bookings at $2.41 billion, compared with $1.94 billion in the previous quarter. The company said deal wins were diversified across industries, geographies and business segments, including an AI-led transformation mandate from a Europe-based Fortune Global 50 company.
Advanced AI revenue continued to gain momentum, rising 10.6% QoQ and 62.1% YoY in constant currency terms to $171 million. The annualised revenue run rate from Advanced AI increased to $688 million.
CEO and Managing Director C Vijayakumar said enterprise adoption of HCLTech’s advanced AI offerings continued to accelerate. He added that AI-led services will remain a key growth driver in FY27, while the company focuses on innovation to manage AI-driven pricing pressures.
Segment-wise Revenue Performance
The IT and Business Services segment remained the largest contributor, accounting for nearly 75% of revenue. Revenue from this segment increased 4.2% YoY in constant currency terms to ₹26,049 crore from ₹22,454 crore.
Engineering and R&D Services revenue increased to ₹5,690 crore from ₹5,174 crore, while HCL Software revenue rose to ₹2,840 crore from ₹2,721 crore. In constant currency terms, Engineering and R&D Services grew 0.3% YoY, while HCL Software declined 5.3%.
Among industry verticals, financial services remained the largest contributor with a 22.1% revenue mix and grew 5.3% YoY in constant currency terms. Manufacturing revenue increased 3.7%, technology and services grew 7.3%, life sciences and healthcare rose 0.4%, retail and CPG increased 10.1%, and public services grew 12%. Telecom, media, publishing and entertainment declined 10.9%.
Margins Improve, Guidance Retained
HCL Tech’s EBIT increased to ₹5,831 crore from ₹4,942 crore a year ago, while EBIT margin improved to 16.86% from 16.5% in the March quarter. The margin was slightly above analyst estimates of 16.8%.
The company retained its FY27 guidance, expecting constant currency revenue growth of 1%-4%, services revenue growth of 1.5%-4.5%, and EBIT margin between 17.5%-18.5%.
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Dividend, Cash Position and Employee Metrics
The board declared an interim dividend of ₹12 per equity share, marking the company’s 94th consecutive quarter of dividend payout. The record date has been fixed as July 17, 2026, and the dividend will be paid on July 27.
HCL Tech generated operating cash flow of ₹19,258 crore and free cash flow of ₹17,843 crore over the last 12 months. Operating cash flow conversion stood at 107% of net income, while free cash flow conversion was 99%. As of June 30, gross cash stood at ₹27,058 crore, while net cash was ₹26,907 crore.
Employee attrition increased slightly to 12.7% from 12.5% in the March quarter. The company’s total headcount declined by 3,292 employees QoQ to 223,889.
The company also completed the acquisition of Jaspersoft, a business unit of Cloud Software Group, on July 1, strengthening its AI and data capabilities. HCL Tech also highlighted its investment in Sarvam AI to build a full-stack AI platform covering models, applications and managed services.
