HCLTech Q1 net profit rises 8.4% to ₹4,626 crore

HCL Technologies reported a consolidated net profit of ₹4,626 crore for the quarter ended June 30, 2026, an increase of 8.4% from ₹3,844 crore in the corresponding period of the previous year. On a sequential basis, net profit rose from ₹4,490 crore in the previous quarter. Revenue from operations grew 13.9% YoY to ₹34,579 crore from ₹30,349 crore in Q1FY26. The Board of Directors approved the unaudited financial results and declared an interim dividend of ₹12 per equity share of ₹2 each for FY26-27.

The record date for the interim dividend payment is July 17, 2026, with the payment scheduled for July 27, 2026. The statutory auditors issued an unmodified review report on the results. In compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audio recording of the conference call held on July 13, 2026, has been uploaded to the company's website.

Consolidated Financial Performance

Consolidated total income for the quarter stood at ₹34,940 crore, compared to ₹30,805 crore in the same quarter last year. Total expenses increased to ₹28,832 crore from ₹25,616 crore. Profit before tax for the period was ₹6,108 crore, up from ₹5,189 crore in Q1FY26. EBIT for the quarter came in at ₹5,830 crore, compared to ₹5,620 crore in the previous quarter. Basic earnings per share for the quarter were ₹17.09, compared to ₹14.18 in the previous year.

The following table summarises the key consolidated financial metrics:

Particulars	Q1FY27 (₹ in crores)	Q1FY26 (₹ in crores)
Revenue from operations	34,579	30,349
Total income	34,940	30,805
Total expenses	28,832	25,616
Profit before tax	6,108	5,189
Net profit	4,626	3,844

The table below captures key sequential comparisons for the quarter:

Metric	Q1FY27 (Actual)	Q4FY26 (QoQ)
Net Profit	₹4,626 crore	₹4,490 crore
Revenue	₹34,579 crore	₹33,981 crore
EBIT	₹5,830 crore	₹5,620 crore

Segment and Operational Performance

IT and Business Services reported revenue of ₹26,049 crore, while Engineering and R&D Services recorded ₹5,690 crore. HCL Software contributed ₹2,840 crore to the total revenue. The segment results before tax and unallocable expenses were ₹5,831 crore for the quarter.

Standalone Financial Performance

Standalone net profit for the quarter was ₹7,025 crore, compared to ₹2,888 crore in the same quarter last year. Revenue from operations stood at ₹14,337 crore, up from ₹13,073 crore in Q1FY26. Total income was ₹18,738 crore, driven by other income of ₹4,401 crore. Basic earnings per share for the standalone entity were ₹25.96.

Strategic Developments

The Group completed the acquisition of Jaspersoft, a business unit of Cloud Software Group (CSG), on July 1, 2026, for ₹2,275 crore ($240 million). The transaction will be accounted for in the next quarter. The Board meeting commenced at 1:05 PM IST and concluded at 5:05 PM IST on July 13, 2026.

During the earnings call, management highlighted that advanced AI revenue for the quarter stood at $171 million, marking 10.6% QoQ and 62.1% YoY growth. The company announced a strategic investment of up to INR3,500 crores to enter the AI datacenter business, with a potential to scale to 50 megawatts of capacity. This initiative aims to create full-stack offerings combining AI datacenter design, DevOps, cloud operations, and software portfolio. Additionally, the company made a strategic investment of $150 million in Sarvam, an India-based full-stack sovereign AI company, to co-innovate on multilingual AI models. The company retained its revenue guidance of 1% to 4% and margin guidance of 17.5% to 18.5% for FY27.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.86%	-0.46%	+18.72%	-15.51%	-7.98%	+28.24%

HCL Technologies has entered a new seven-year agreement with The Guardian Life Insurance Company of America to advance AI-powered modernization across technology and operations. As part of this expanded strategic partnership, HCL Technologies will acquire Guardian India Operations Private Limited for $10.5 million. The transaction will integrate nearly 2,000 employees into HCLTech through a dedicated Strategic Business Unit focused exclusively on supporting Guardian.

Acquisition Details

The acquisition involves a 100% stake purchase via cash consideration. Guardian India serves as a Technology & Operations Global Capability Centre (GCC) for The Guardian Life Insurance Company of America, providing technology, engineering, and operations capabilities across Group Benefits, Retirement, and Wealth Management businesses. The acquisition is not subject to any regulatory approvals and is expected to be completed on August 1, 2026. The transaction is not classified as a related party transaction, and the promoter or promoter group companies have no interest in the entity being acquired.

The following table summarizes the key details of the acquisition and Guardian India's financial performance:

Metric:	Details
Cost of Acquisition:	$10,500,000
Stake Acquired:	100%
FY 2024 Revenue:	Rs. 493.5 crores
FY 2025 Revenue:	Rs. 483.2 crores
FY 2026 Revenue:	Rs. 578.8 crores (Unaudited)
Employees Transitioning:	~2,000
Completion Date:	August 1, 2026

AI-Led Strategic Partnership

The expanded partnership aims to accelerate value realization and efficiency for Guardian through AI-led solutions and intellectual property. HCLTech will deploy its AI Service Transformation Platform, AI Force, to create agentic capabilities for the business. This collaboration is intended to drive operational excellence, reduce costs, and improve time to market for Guardian's products and services.

Leadership and Compliance

Karunakaran Azhisur, Country Head of Guardian India, will join HCLTech to lead the newly formed Strategic Business Unit. Guardian India was incorporated on March 5, 2002, and operates solely in India. The disclosure regarding the acquisition was made in terms of Regulation 30(4) of the SEBI (Listing Obligations and Disclosures Requirements) Regulations 2015.