HCLTech kicked off the FY26 earnings season on a steady note, reporting a 7.6 per cent year-on-year rise in net profit at Rs 3,843 crore for the June 2025 quarter. The company’s bottom line was broadly in line with Street expectations.
Quarterly revenue was Rs 28,169 crore, up 5.5 per cent YoY, and EBIT was Rs 5,300 crore, representing an operating margin of 18.8 per cent, lower sequentially but within the guided range.
Key financial highlights (Q1FY26)
Net profit: Rs 3,843 crore, up 7.6% YoY
Revenue: Rs 28,169 crore, up 5.5% YoY
EBIT margin: 18.8% vs 19.2% QoQ
EPS: Rs 15.61 vs Rs 14.46 YoY
Dividend announcement
The board of directors announced an interim dividend of Rs 12 per share, with a record date of July 22, 2025. The dividend will be credited on or before August 5, 2025, the company told in its exchange filing.
Vertical-wise performance and deal wins
Quarterly growth was led by Life Sciences, Energy & Utilities, and Financial Services verticals. The IT services segment, which accounts for the majority of the business of HCLTech, had a healthy deal pipeline.
The firm added new deal wins amounting to $2.3 billion, marginally lower than the last quarter, but management is positive about deal conversions accelerating in the second half of FY26.
Guidance for FY26: Guidance unchanged
HCLTech has reaffirmed its FY26 constant currency revenue growth guidance of 4.0–6.0 per cent and EBIT margin guidance of 18–19 per cent. The organization added that discretionary spend remains tight in certain geographies, but cost optimisation and AI-driven transformation deals are likely to fuel incremental growth.
CEO C Vijayakumar added, “We are observing greater client enthusiasm for GenAI and digital transformation. Our healthy order book and strong client relationships put us in a good position for the next quarters.”
Stock performance and valuation
HCLTech shares closed at Rs 1,465 on Monday, down 0.7 per cent before the results. The stock has risen close to 16 per cent over the last one year, outperforming majority of its large-cap IT peers except TCS.
Brokerage houses are likely to rework their earnings estimates after the Q1 print. While margin resilience and dividend payments are favoring sentiment, analysts will look closely at deal flow momentum in subsequent quarters.
