HCLTech Q1 revenue jumps 8% to ₹30,349 cr but profit dips 9.7% to ₹3,843 cr

IT major HCLTech has reported consolidated revenue of ₹30,349 crore in the April-June quarter of 2025-26, up 8.2% year-on-year (YoY), with USD revenue at $3,545 million, a 5.4% YoY increase. On the profitability front, EBIT stood at ₹4,942 crore, up 3.1% YoY. Net income came in at ₹3,843 crore, a 9.7% YoY drop, primarily due to higher investments, especially in AI and GTM investments, lower utilisation, and modest growth in core segments.

In constant currency (CC) terms, revenue grew 3.7% YoY, with services revenue growing 4.5% YoY and digital revenue surging 15.2% YoY in CC terms, which now accounts for 41.6% of the overall services revenue. HCLSoftware’s revenue was down 3% YoY CC, though annual recurring revenue (ARR) came in at $1.06 billion, up 1.3% YoY.

CEO and MD C Vijayakumar says the company's operating margin came at 16.3%, impacted by lower utilisation and additional Gen AI and GTM investments. "Our AI propositions are resonating well with our clients and have been augmented further by our partnership with OpenAI. Our pipeline continues to grow as the demand environment was stable during the quarter."

The company declared a ₹12 per share dividend, marking its 90th consecutive quarter of dividend payout.

HCLTech reported total contract value (TCV) of $1,812 million from new deal wins in Q1 FY26.

The company's employee count stood at 223,151 at the end of the quarter, a reduction of 269. Despite the decline, HCLTech onboarded 1,984 freshers in Q1 FY26. Attrition on a last 12 months (LTM) basis remained stable at 12.8%, the same as in Q1 last year.

In its full financial year guidance, HCLTech expects constant currency revenue growth for FY26 to be between 3% and 5%, both at the overall and services level. EBIT margin is projected to range between 17.0% and 18.0%.

Roshni Nadar Malhotra, Chairperson, says HCLTech remains "intensely focused" on the ethical deployment of AI and maximising its positive social impact. "AI has become integral to the business growth of global enterprises. HCLTech’s capabilities and strategic partnerships ensure our AI-led solutions are practical, comprehensive and significant value creators to our clients."

Vijayakumar also says that HCLTech, as the only service provider positioned as “Customer's Choice’’ in all 6 Gartner Voice of Customer Quadrant evaluations related to IT services, is well positioned to grow in the AI era.

Shares of HCLTech closed 1.04% down at ₹1,619.95 on the BSE today.