HCLTech Reports Strong Q1 Results, Raises Revenue Forecast

2 min read     Updated on 14 Jul 2025, 06:55 PM
scanxBy ScanX News Team
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Overview

HCL Technologies Limited (HCLTech) announced Q1 financial results with consolidated revenue of ₹30,349.00 crores, up 8.2% YoY. EBIT stood at ₹4,942.00 crores (16.3% of revenue), increasing 3.1% YoY. Net Income was ₹3,843.00 crores. Services segment showed 4.5% YoY growth in constant currency. Digital revenue grew 15.2% YoY, contributing 41.6% of Services revenue. New deal wins totaled $1,812.00 million TCV. The company raised its revenue growth forecast to 3.0-5.0% YoY in constant currency for FY2024. An interim dividend of ₹12.00 per share was declared.

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*this image is generated using AI for illustrative purposes only.

HCL Technologies Limited (HCLTech), a leading global technology company, has announced its financial results for the first quarter, showcasing robust performance and an optimistic outlook for the future.

Revenue Growth

HCLTech reported a consolidated revenue of ₹30,349.00 crores for Q1, marking a year-on-year growth of 8.2% in INR terms. In constant currency, the company achieved a 3.7% year-on-year growth. The Services segment, which includes IT and Business Services and Engineering and R&D services, demonstrated particularly strong performance with a 4.5% year-on-year growth in constant currency.

Profitability

The company's EBIT (Earnings Before Interest and Taxes) for the quarter stood at ₹4,942.00 crores, representing 16.3% of revenue. While this shows a 9.2% decrease quarter-on-quarter, it reflects a 3.1% increase year-on-year. Net Income for Q1 was ₹3,843.00 crores, accounting for 12.7% of revenue.

Segment Performance

HCLTech's IT and Business Services segment generated revenue of ₹22,454.00 crores, growing 3.0% year-on-year in constant currency. The Engineering and R&D services segment showed impressive growth of 11.8% year-on-year, with revenue reaching ₹5,174.00 crores. The HCL Software segment reported revenue of ₹2,721.00 crores.

Digital Business and AI Initiatives

The company's digital business continues to thrive, with digital revenue growing 15.2% year-on-year in constant currency and contributing 41.6% of the Services revenue. HCLTech is also making significant strides in artificial intelligence, with its AI propositions resonating well with clients. The company has further augmented its AI capabilities through a partnership with OpenAI.

Client Acquisition and Bookings

HCLTech secured new deal wins with a Total Contract Value (TCV) of $1,812.00 million during the quarter. The company added 8 new clients in the $1 million+ category, bringing the total to 956.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹12.00 per share, marking the 90th consecutive quarter of dividend payout.

Outlook and Guidance

Based on the strong Q1 performance and positive market outlook, HCLTech has raised its revenue forecast. The company now expects its revenue growth to be between 3.0% to 5.0% year-on-year in constant currency for both overall company revenue and Services revenue. The EBIT margin is projected to be between 17.0% and 18.0%.

C Vijayakumar, CEO & Managing Director of HCLTech, commented on the results, stating, "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 AI propositions are resonating well with our clients and have been augmented further by our partnership with OpenAI. Our pipeline continues to grow as the demand environment was stable during the quarter."

With its strong financial performance, focus on digital and AI-led solutions, and an optimistic outlook, HCLTech appears well-positioned for continued growth in the evolving technology landscape.

Metric Q1 Amount YoY Growth
Revenue ₹30,349.00 crores 8.2%
EBIT ₹4,942.00 crores 3.1%
Net Income ₹3,843.00 crores -9.7%
Digital Revenue Growth - 15.2%
New Deal TCV $1,812.00 million -

Historical Stock Returns for HCL Technologies

1 Day5 Days1 Month6 Months1 Year5 Years
-1.13%-5.30%-5.99%-10.68%+3.20%+173.92%
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HCL Technologies Reports Steady Growth in Q1 FY2026, Declares Interim Dividend

2 min read     Updated on 14 Jul 2025, 06:51 PM
scanxBy ScanX News Team
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Overview

HCL Technologies Limited (HCLTech) announced Q1 FY2026 results with consolidated revenue of ₹30,349.00 crores, up 8.2% YoY. EBIT stood at ₹4,942.00 crores (16.3% of revenue), while net income was ₹3,843.00 crores (12.7% of revenue). The Engineering and R&D Services segment showed strong 11.8% YoY growth in constant currency. The company declared an interim dividend of ₹12.00 per equity share. HCLTech maintained its FY2026 guidance, expecting 3.0% - 5.0% YoY revenue growth in constant currency.

14044884

*this image is generated using AI for illustrative purposes only.

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:

Segment Revenue (₹ Crores) YoY Growth (Constant Currency)
IT and Business Services 22,454.00 3.0%
Engineering and R&D Services 5,174.00 11.8%
HCL Software 2,721.00 -3.0%

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.

Historical Stock Returns for HCL Technologies

1 Day5 Days1 Month6 Months1 Year5 Years
-1.13%-5.30%-5.99%-10.68%+3.20%+173.92%
HCL Technologies
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