HCL Tech Raises Revenue Growth Forecast, Reports Strong Q2 Performance and Partners with GSMA

HCL Technologies (HCLTech) has reported robust financial results for the second quarter, prompting the company to raise its full-year revenue growth forecast. Additionally, HCLTech has announced a significant partnership with GSMA to advance the Open Gateway initiative.

Key Financial Highlights

HCLTech reported consolidated revenue of ₹31,942.00 crores for Q2, marking a 5.20% quarter-on-quarter (QoQ) increase and a 10.70% year-on-year (YoY) growth. In constant currency terms, the company's revenue grew by 2.40% QoQ and 4.60% YoY.

The company's EBIT (Earnings Before Interest and Taxes) stood at ₹5,550.00 crores, representing 17.40% of revenue. This reflects a significant 12.30% QoQ increase and a 3.50% YoY growth. The Q2 EBIT margin includes a 55 basis points impact from restructuring costs.

Net income for the quarter remained stable YoY at ₹4,235.00 crores, accounting for 13.30% of revenue. This represents a 10.20% increase from the previous quarter.

Revised Growth Forecast

Based on the strong performance, HCLTech has revised its full-year revenue growth forecast upwards:

Overall company revenue growth is now expected to be between 3.00% - 5.00% YoY in constant currency.
Services revenue growth is projected to be between 4.00% - 5.00% YoY in constant currency.
The EBIT margin guidance remains unchanged at 17.00% - 18.00%.

Segment Performance

Segment	Revenue (₹ Crores)	YoY Growth (Constant Currency)
IT and Business Services	23,693.00	3.80%
Engineering and R&D Services	5,423.00	13.40%
HCLSoftware	2,826.00	0.60% (ARR)

The HCLSoftware segment's Annual Recurring Revenue (ARR) reached $1.06 billion.

Operational Highlights

Total employee count stood at 226,640, with a net addition of 3,489 during the quarter.
The company added 5,196 freshers in Q2.
Attrition rate (on a Last Twelve Months basis) improved to 12.60%, down from 12.90% in the same quarter last year.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹12.00 per share, marking the 91st consecutive quarter of dividend payout.

Partnership with GSMA

HCLTech has partnered with GSMA to advance the GSMA Open Gateway initiative, becoming the first global technology company to join the program. This collaboration aims to enhance customer experiences, streamline application development, and unlock new revenue streams for the global telecoms industry.

HCLTech will contribute:

A converged network monetization platform
Secure network API layer
Agentic AI solutions
End-to-end implementation services
Industry-specific use cases across 10+ verticals

The Open Gateway initiative involves over 79 mobile operator groups representing 291 carrier networks and nearly 80% of global mobile connections.

C Vijayakumar, CEO & Managing Director of HCLTech, commented on the results: "A standout quarter on every front — marked by strong execution, growing demand for our AI-powered solutions, and Advanced AI revenue exceeding $100M this quarter. Our revenue grew 2.4% sequentially in constant currency with a strong recovery of operating margin to 17.5%."

The company's focus on AI-driven solutions and its ability to secure new deals, evidenced by the Total Contract Value (TCV) of new deal wins reaching $2,569.00 million (up 41.80% QoQ and 15.80% YoY), positions HCLTech well for continued growth in the evolving tech landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.73%	-0.32%	+2.88%	-7.89%	-17.61%	+90.01%

HCL Technologies (HCLTech) has reported robust financial results for the second quarter, marked by significant growth in revenue and profitability, along with a milestone achievement in its artificial intelligence (AI) business.

Revenue Growth and Profitability

HCLTech posted consolidated revenue of ₹31,942.00 crores for Q2, representing a 5.20% quarter-on-quarter (QoQ) increase and a 10.70% year-on-year (YoY) growth. In constant currency terms, the company's revenue grew by 2.40% QoQ and 4.60% YoY.

The company's EBIT (Earnings Before Interest and Taxes) stood at ₹5,550.00 crores, with an EBIT margin of 17.40%. This marks a significant improvement from the previous quarter, with EBIT growing by 12.30% QoQ. The net income for the quarter was ₹4,235.00 crores, up 10.20% QoQ.

AI Business Milestone

A standout achievement for HCLTech this quarter was its Advanced AI business exceeding $100 million in revenue. This makes HCLTech the first Indian IT services company to report standalone AI revenue, showcasing its growing capabilities in this cutting-edge technology domain.

Services Performance

HCLTech's Services business, which includes IT and Business Services and Engineering and R&D services, demonstrated strong growth. The Services revenue increased by 2.50% QoQ and 5.50% YoY in constant currency terms. Notably, the company's digital revenue grew by 15.00% YoY, now contributing 42.00% of the Services revenue.

Segment-wise Performance

Segment	Revenue (₹ Crores)	YoY Growth (CC)	QoQ Growth (CC)
IT and Business Services	23,693.00	3.80%	2.60%
Engineering and R&D Services	5,423.00	13.40%	2.20%
HCLSoftware	2,826.00	-3.70%	0.50%

New Bookings and Client Acquisition

HCLTech reported strong momentum in new deal wins, with Total Contract Value (TCV) reaching $2,569.00 million, up 41.80% QoQ and 15.80% YoY. This marks the first time the company's new bookings have surpassed $2.5 billion in a quarter without relying on any mega-deal.

Workforce and Attrition

The company added 3,489 employees during the quarter, bringing its total headcount to 226,640. HCLTech's focus on talent acquisition is evident with the addition of 5,196 freshers. The Last Twelve Months (LTM) attrition rate improved to 12.60%, down from 12.90% in the same quarter last year.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹12.00 per equity share, maintaining its consistent dividend payout record for the 91st consecutive quarter.

Management Commentary

Outlook

HCLTech has maintained its EBIT margin guidance at 17.00% - 18.00%. The company expects its revenue growth to be between 3.00% - 5.00% YoY in constant currency, with Services revenue growth projected between 4.00% - 5.00% YoY.

As HCLTech continues to invest in new technologies and capabilities, particularly in AI, the company appears well-positioned to capitalize on the growing demand for digital transformation services in the global IT market.