HCLTech on Monday reported a net profit of Rs 3,843 crore for the quarter ended June 30, marking a 7.6 per cent increase over the corresponding period a year ago. Its revenue came in at Rs 28,169 crore, up 5.5 per cent.
The IT major registered earnings before interest and taxes (EBIT) of Rs 5,300 crore, with an operating margin of 18.8 per cent.
Key financial highlights (Q1FY26)
- Net profit: Rs 3,843 crore, up 7.6% YoY
- Revenue: Rs 28,169 crore, up 5.5% YoY
- EBIT margin: 18.8% vs 19.2% QoQ
- EPS: Rs 15.61 vs Rs 14.46 YoY
HCLTech dividend announcement
The IT firm’s board announced an interim dividend of Rs 12 per share, with a record date of July 22.
The dividend will be credited on or before August 5, 2025, according to a regulatory filing.
Vertical-wise performance and deal wins
Quarterly growth was led by Life Sciences, Energy & Utilities, and Financial Services verticals. The IT services segment, which accounts for the majority of the business of HCLTech, had a healthy deal pipeline.
The firm added new deal wins amounting to $2.3 billion, marginally lower than the last quarter, but management is positive about deal conversions accelerating in the second half of FY26.
Guidance for FY26: Guidance unchanged
HCLTech has reaffirmed its FY26 constant currency revenue growth guidance of 4.0–6.0 per cent and EBIT margin guidance of 18–19 per cent. The company said its discretionary spends remain tight in certain geographies, but cost optimisation and AI-driven transformation deals are likely to fuel incremental growth.
HCLTech CEO C Vijayakumar added, “We are observing greater client enthusiasm for GenAI and digital transformation.”
“Our healthy order book and strong client relationships put us in a good position for the next quarters,” the CEO added.
Stock performance and valuation
HCLTech shares ended 0.7 per cent lower at Rs 1,465 apiece on Monday, before the earnings announcement.
The stock has risen close to 16 per cent over the last one year, outperforming majority of its large-cap IT peers except TCS.
Brokerage houses are likely to rework their earnings estimates after the Q1 print.
While margin resilience and dividend payments are favouring sentiment, analysts will look closely at deal flow momentum in subsequent quarters.
