Company Overview:
HCL Technologies Ltd is a leading global IT services company headquartered in India, ranked among the top five Indian IT firms by revenue. Since its IPO in 1999, HCL Tech has focused on transformational outsourcing, offering an integrated portfolio of software-led IT solutions, remote infrastructure management, engineering and R&D services, and BPO. The company operates in over 46 countries, delivering multi-service solutions across key industry verticals including finance, healthcare, and manufacturing. Presenting below its Q2 FY26 Earnings Results.
Financial Highlights for Q1 FY26 Earnings
- Revenue: ₹30,349 crore, up 8.2% year-on-year from ₹28,057 crore
- Total Expenses: ₹25,616 crore, up 9.2% year-on-year
- Consolidated Net Profit (PAT): ₹3,844 crore, down 9.7% year-on-year from ₹4,259 crore
- Earnings Per Share (EPS): ₹14.20, down from ₹15.70 in the same quarter last year
- EBIT Margin: 16.3%, down from 17.1% a year earlier
Performance Insights:
- Revenue growth was driven by increased demand for digital services, which grew 15.2% year-on-year and now accounts for over 41% of total services revenue.
- Engineering and R&D services also showed robust growth, up 11.8% year-on-year.
- Despite revenue growth, profit margins were under pressure due to rising operational expenses and margin compression.
- The company secured new deal wins totaling $1.8 billion, although lower than the previous quarter, reflecting a strong but cautious pipeline.
- HCLTech announced a dividend of ₹12 per share for the quarter, marking its 90th consecutive quarter of dividend payouts.
Outlook:
HCL Technologies expects to continue revenue growth in the range of 3.0%–5.0% for FY26 with an EBIT margin guidance of 17.0%–18.0%. The firm is focusing on digital and cloud services expansion, generative AI adoption, and operational efficiency to improve profitability metrics in coming quarters.
Explore the company’s past earnings and latest concall transcripts, click here to visit the AlphaStreet India News Channel.
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