HCL Technologies Limited (HCLTech), a leading global technology company, has announced its financial results for the first quarter of fiscal year 2026, showcasing steady growth and resilience in a dynamic market environment.

Financial Highlights

For the quarter ended June 30, 2025, HCLTech reported consolidated revenue of ₹30,349.00 crores, marking a 8.2% year-on-year increase and a slight 0.3% quarter-on-quarter growth. In constant currency terms, the company's revenue grew by 3.7% year-on-year.

The company's earnings before interest and taxes (EBIT) stood at ₹4,942.00 crores, representing 16.3% of revenue. While this indicates a 3.1% year-on-year growth, it reflects a 9.2% decrease compared to the previous quarter.

Net income for the quarter was reported at ₹3,843.00 crores, accounting for 12.7% of revenue. This shows a 9.7% year-on-year decline and a 10.8% quarter-on-quarter decrease.

Segment Performance

HCLTech's segment performance for the quarter was as follows:

The Engineering and R&D Services segment showed particularly strong performance with an impressive 11.8% year-on-year growth in constant currency.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹12.00 per equity share for the financial year 2025-26, maintaining its consistent dividend payout record.

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."

Market Position and Future Outlook

HCLTech has been recognized as the only service provider positioned as "Customers' Choice" in all six Gartner Voice of Customer Quadrant evaluations related to IT services, underlining its strong market position.

The company has maintained its guidance for FY2026, expecting revenue growth between 3.0% - 5.0% year-on-year in constant currency for both the company overall and its Services segment. The EBIT margin is projected to be between 17.0% – 18.0%.

Conclusion

Despite facing some headwinds in profitability, HCLTech has demonstrated resilience with steady revenue growth and strategic investments in emerging technologies like AI. The company's strong market position and consistent dividend payout reflect its commitment to delivering value to shareholders while navigating the evolving technology landscape.

Note: All financial figures are in Indian Rupees (₹) unless otherwise stated.

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.