HCL Technologies Ltd. (HCLTech) has announced its financial results for the first quarter of fiscal year 2025-26, showcasing steady performance and a commitment to shareholder returns. The company's Board of Directors has declared an interim dividend of ₹12 per equity share.

Q1 FY2026 Financial Highlights

HCLTech reported consolidated revenue of ₹30,349.00 crores for the quarter ended June 30, 2025, marking a 8.20% year-on-year increase and a slight 0.30% quarter-on-quarter growth. In constant currency terms, the revenue grew by 3.70% year-on-year but decreased by 0.80% sequentially.

The company's profit for the period stood at ₹3,843.00 crores, representing a 12.70% margin. While this indicates a 9.70% year-on-year decline, it's important to note the challenging global economic environment.

Segment Performance

HCLTech's performance across its business segments for Q1 FY2026 was as follows:

The Engineering and R&D Services segment showed strong year-on-year growth, while the IT and Business Services segment remained stable. The HCL Software segment faced some challenges, showing a decline both year-on-year and quarter-on-quarter.

Dividend Announcement

The Board of Directors has declared an interim dividend of ₹12 per equity share of ₹2 each for the financial year 2025-26. The record date for this dividend is set for July 18, 2025, with the payment scheduled for July 28, 2025.

Management Commentary

C. Vijayakumar, CEO & Managing Director of HCLTech, commented on the results: "We had healthy revenue growth of 3.7% YoY supported by good performance in our Services business with 4.5% YoY growth in constant currency. Our operating margin came at 16.3%, impacted by lower utilization 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 Open AI."

Future Outlook

HCLTech has provided guidance for FY2026, projecting company revenue growth between 3.00% - 5.00% year-on-year in constant currency. The Services revenue is also expected to grow within the same range. The company anticipates an EBIT margin between 17.00% – 18.00% for the fiscal year.

As HCLTech continues to navigate the evolving technology landscape, its focus on AI and strategic partnerships positions it well for future growth opportunities in the global IT services market.

Conclusion

Despite some challenges, HCLTech's Q1 FY2026 results demonstrate the company's resilience and its commitment to delivering value to shareholders. The dividend announcement further underscores this commitment, marking the 90th consecutive quarter of dividend payout for the company.

Investors and market watchers will be keen to observe how HCLTech's strategies in AI and other emerging technologies translate into growth and profitability in the coming quarters.

HCL Technologies Limited (HCLTech) has announced its financial results for the first quarter, showcasing steady growth and a positive outlook for the year ahead.

Revenue Performance

HCLTech reported consolidated revenue of ₹30,349.00 crores for Q1, marking an 8.2% year-over-year increase and a slight 0.3% quarter-over-quarter growth. In constant currency terms, the company's revenue grew by 3.7% year-over-year, although it experienced a marginal decline of 0.8% compared to the previous quarter.

Segment-wise Performance

The IT and Business Services segment continued to be the primary revenue driver, contributing ₹22,454.00 crores to the total revenue. The Engineering and R&D services segment showed strong growth, generating ₹5,174.00 crores in revenue. The HCL Software segment contributed ₹2,721.00 crores to the overall revenue.

Profitability

The company's EBIT (Earnings Before Interest and Taxes) stood at ₹4,942.00 crores, representing 16.3% of revenue. This reflects a 9.2% decrease quarter-over-quarter but a 3.1% increase year-over-year. Net income for the quarter was ₹3,843.00 crores, accounting for 12.7% of revenue. This indicates a 10.8% decline from the previous quarter and a 9.7% decrease compared to the same period last year.

Future Outlook

Looking ahead, HCLTech has provided a positive forecast:

• The company projects overall revenue growth between 3.0% and 5.0% year-over-year in constant currency terms.
• Services revenue is expected to grow between 3.0% and 5.0% year-over-year in constant currency.
• EBIT margin is anticipated to be in the range of 17.0% to 18.0%.

Key Highlights

• HCLTech's total contract value (TCV) for new deal wins in Q1 reached $1,812.00 million.
• The company maintained a strong focus on talent, with a total headcount of 223,151 employees.
• HCLTech added 1,984 freshers during the quarter.
• The Last Twelve Months (LTM) attrition rate stood at 12.8%, on par with the same period last year.

Management Commentary

Roshni Nadar Malhotra, Chairperson of HCLTech, emphasized the company's commitment to responsible AI deployment and its potential for positive social impact. C Vijayakumar, CEO & Managing Director, highlighted the company's healthy revenue growth of 3.7% year-over-year, driven by strong performance in the Services business. He also noted that HCLTech's AI propositions are resonating well with clients, further augmented by the company's partnership with OpenAI.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹12.00 per equity share, maintaining its track record of consistent shareholder returns.

HCLTech's Q1 results demonstrate the company's resilience and adaptability in a dynamic market environment. With a strong focus on AI-led solutions and strategic partnerships, HCLTech appears well-positioned to capitalize on emerging opportunities in the technology sector.