HCL Technologies , a leading global technology company, has announced its financial results for the second quarter, showcasing robust growth and strong performance across key metrics.

Revenue Highlights

HCL Technologies reported consolidated revenue of ₹31,942.00 crores for Q2, marking a significant year-on-year growth of 10.7% and a sequential growth of 5.2%. In constant currency terms, the company's revenue grew by 4.6% year-on-year and 2.4% quarter-on-quarter.

Segment-wise Performance

The company's performance across its three main segments was as follows:

Profitability and Margins

HCL Technologies maintained strong profitability with the following key metrics:

• EBIT (Earnings Before Interest and Taxes) stood at ₹5,550.00 crores, representing 17.4% of revenue.
• Net Income reached ₹4,235.00 crores, accounting for 13.3% of revenue.
• The company's EBIT margin for Q2 included a 55 basis points impact of restructuring costs.

Client Acquisition and Bookings

The company continued to demonstrate strong business momentum:

• Total Contract Value (TCV) of new deal wins reached $2,569.00 million, showing impressive growth of 41.8% quarter-on-quarter and 15.8% year-on-year.
• HCL Technologies added 3 clients in the $50 million+ category on a year-on-year basis.

Dividend Declaration

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

Workforce Expansion

HCL Technologies continued to invest in its talent pool:

• Total headcount reached 226,640, with a net addition of 3,489 employees during the quarter.
• The company added 5,196 freshers in Q2.
• Attrition rate (on a Last Twelve Months basis) improved to 12.6%, down from 12.9% in the same quarter last year.

Management Commentary

C Vijayakumar, CEO & Managing Director of HCL Technologies, 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%. For the first time, our new bookings surpassed $2.5 billion, without reliance on any mega-deal."

Future Outlook

HCL Technologies has provided a positive outlook:

• Company revenue growth is expected to be between 3.0% - 5.0% year-on-year in constant currency.
• Services revenue growth is projected to be between 4.0% - 5.0% year-on-year in constant currency.
• EBIT margin is anticipated to be between 17.0% - 18.0%.

The company's strong performance in Q2, coupled with its focus on AI-powered solutions and robust client additions, positions HCL Technologies well for continued growth in the coming quarters.

HCL Technologies , a leading IT services company, is set to announce its Q2 financial results on October 13, with market analysts projecting positive growth and improved margins. The upcoming results have garnered significant attention from investors and industry watchers alike.

Financial Projections

According to Bloomberg estimates, HCLTech is expected to report the following key financials:

Analyst Expectations

Multiple analysts have weighed in with their projections for HCLTech's Q2 performance:

• Revenue Growth: Constant currency revenue growth is anticipated to be between 1.10% to 2.00% quarter-on-quarter.
• Margin Expansion: EBIT margin is expected to expand by 20-80 basis points, driven by restructuring benefits and topline growth.

Key Focus Areas

Investors and analysts will be closely watching several aspects of HCLTech's performance and outlook:

1. Deal momentum
2. Discretionary spending trends
3. Potential revisions to FY26 guidance
4. Impact of new H-1B visa fee changes

H-1B Visa Fee Impact

A notable point of interest is the U.S. government's recent introduction of a $100,000.00 charge on new H-1B visa petitions. This change could potentially affect IT companies, including HCLTech, in terms of operational costs.

Analyst Price Targets

Various brokerages have set price targets for HCLTech stock, ranging from ₹1,530.00 to ₹1,650.00.

As HCLTech prepares to release its Q2 results, the market anticipates a continuation of steady growth and improved profitability. The company's performance in key areas such as deal pipeline, discretionary spending, and margin improvement will be crucial in determining its trajectory for the remainder of the fiscal year.