Financial Performance Highlights

HCL Technologies Limited reported its financial results for the quarter ended June 30, 2026 (Q1 FY27).

Revenue Performance:

  • Consolidated revenue: ₹34,579 crore, up 1.8% quarter-on-quarter (QoQ) and 13.9% year-on-year (YoY)
  • USD revenue: $3,650 million, down 0.9% QoQ and up 3.0% YoY
  • Constant Currency (CC) Revenue: down 0.5% QoQ, up 2.6% YoY
  • Advanced AI Revenue: $171 million, up 10.6% QoQ CC and 62.1% YoY CC
  • Revenue per employee (per annum): $65.5K, up 0.7% QoQ and 3.3% YoY

Profitability Metrics:

  • EBIT Margin: 16.9% (includes impact of restructuring cost of 62 bps)
  • EBIT Margin improvement: up 39 bps QoQ and 56 bps YoY
  • Net Income: ₹4,624 crore (13.4% of revenue), up 3.0% QoQ and 20.3% YoY
  • EPS (diluted): ₹66.90, up 4.5% QoQ and 6.9% YoY
  • Dividend per share: ₹12 declared

Other Financial Metrics:

  • Bookings (New Deal Wins): $2,407 million
  • FCF/NI (on LTM basis): 99%
  • ROIC (on LTM basis): 40.7%

FY27 Guidance:

  • Company revenue growth (YoY in CC): 1.0% - 4.0%
  • Services revenue growth (YoY in CC): 1.5% - 4.5%
  • EBIT Margin: 17.5% - 18.5%

Segment-wise Performance

Revenue Mix:

  • IT & Business Services: 75.1% of revenue, EBIT margin 17.0%, up 4.2% YoY CC
  • Engineering & R&D Services: 16.4% of revenue, EBIT margin 15.6%, up 0.3% YoY CC
  • HCLSoftware: 8.5% of revenue, EBIT margin 17.6%, down 5.3% YoY CC

Vertical Performance (Services business):

  • Financial Services: 22.1% of revenue, up 5.3% YoY CC
  • Manufacturing: 18.7% of revenue, up 3.7% YoY CC
  • Technology & Services: 14.4% of revenue, up 7.3% YoY CC
  • Lifesciences & Healthcare: 14.0% of revenue, up 0.4% YoY CC
  • Telecommunications, Media, Publishing & Entertainment: 11.2% of revenue, down 10.9% YoY CC
  • Retail & CPG: 10.3% of revenue, up 10.1% YoY CC
  • Public Services: 9.3% of revenue, up 12.0% YoY CC

Geographic Performance (Services business):

  • USA: 56.0% of revenue, up 2.9% YoY CC
  • Europe: 27.6% of revenue, up 0.1% YoY CC
  • ROW: 13.1% of revenue, up 10.8% YoY CC
  • India: 3.3% of revenue, up 16.9% YoY CC

Human Capital Metrics

  • Total People Count: 223,151
  • Net Addition: (269) employees
  • Freshers Added: 1,056
  • Attrition (LTM): 12.7%
  • Women Employees: 29.6%
  • Revenue per Employee: $65.5K p.a.
  • R&D expense as % of Revenue: 1.6%

Client Metrics

  • $100M+ clients: 23 (increase of 1 YoY)
  • $50M+ clients: 60 (increase of 6 YoY)
  • $20M+ clients: 155 (increase of 11 YoY)
  • $10M+ clients: 286 (increase of 31 YoY)
  • $5M+ clients: 431 (increase of 29 YoY)
  • $1M+ clients: 987 (increase of 31 YoY)

Client Concentration (LTM):

  • Top 5 Clients: 11.6% of revenue
  • Top 10 Clients: 18.7% of revenue
  • Top 20 Clients: 28.0% of revenue
  • Days Sales Outstanding: 59 days (excluding unbilled receivables)

Key Business Developments

Advanced AI Deals:

The company secured multiple Advanced AI deals including:

  • Global technology major: AI Factory program with incremental scope over $180 million
  • U.S.-based pharmaceutical company: Physical AI solution VisionX for quality inspection
  • Europe-based manufacturer: navigation stack for next-generation autonomous robot
  • Indian research organization: secure chip development using AI Engineering
  • Europe-based medtech company: Physical AI solution TraceX for asset management
  • Global mining company: Physical AI for industrial inspection automation
  • U.S.-based semiconductor major: AI-enabled chip for next-generation vehicles
  • U.S.-based data organization: AI Force for verification workflows
  • U.S.-based global technology company: AI Force for e-commerce platforms
  • Global beverages major: AI Force for identity and access management
  • Europe-based industrial technology company: AI Force for SAP platform
  • Europe-based telecommunications provider: AI Force for application development

Key Deal Wins:

Significant deals included:

  • Europe-based automotive manufacturer: AI-led SRE transformation program
  • U.S.-based telecommunications provider: strategic cybersecurity partnership
  • Europe-based engineering conglomerate: IT landscape modernization
  • U.S.-based agriscience company: IT services consolidation
  • Global technology company: worldwide skilling platform transformation
  • Fortune 250 semiconductor equipment OEM: AI-driven transformation
  • Europe-based health and bioscience company: core engineering modernization
  • U.S.-based medtech company: greenfield SAP S/4HANA implementation
  • U.S.-based apparel retailer: managed security services
  • U.S.-based healthcare technology company: contact center modernization

HCLSoftware Performance

Revenue Breakdown:

  • Perpetual License Upfront & Others: $19 million
  • Subscription & Support: $274 million
  • Professional Services: $20 million
  • Total Revenue: $313 million

Annual Recurring Revenue (ARR): Computed as annualized value of term subscriptions, support obligations, and SaaS contracts

Awards and Recognitions

The company received numerous awards including:

  • TIME World's Most Sustainable Companies (Professional Services category)
  • MSCI AA ESG Rating
  • Ranked 6th in ESG risk rating by Sustainalytics
  • Google Cloud Partner of the Year Awards
  • ServiceNow Partner of the Year
  • HPE Storage Partner of the Year
  • Dell Technologies Global Alliances Partner of the Year
  • Multiple cybersecurity excellence awards

Analyst Recognitions

HCLTech achieved 90+ leadership positions in analyst recognitions during the quarter across various categories including digital business, digital foundation, engineering and R&D services, and data, AI & GenAI.

Corporate Social Responsibility

India-focused initiatives:

  • 7,700+ telemedicine consultations
  • 1,000+ TB patients supported
  • 2,200+ farmers trained
  • 3 solar-based drying units set up
  • 300 youth enrolled for digital skilling
  • 3,100+ plants and 1,800+ bamboo saplings planted

Global initiatives:

  • HCLTech Climate Action Grant in the Americas: $1 million to three nonprofit organizations
  • Employee participation in food bank initiatives and STEM education programs

Financial Statements Summary

Consolidated Income Statement (₹ Crores):

  • Revenues: ₹34,579
  • Direct Costs: ₹23,022 (66.6% of revenue)
  • Gross Profits: ₹11,557 (33.4% of revenue)
  • R&D: ₹549 (1.6% of revenue)
  • SG&A: ₹4,138 (12.0% of revenue)
  • EBITDA: ₹6,870 (19.9% of revenue)
  • Depreciation & Amortization: ₹1,039 (3.0% of revenue)
  • EBIT: ₹5,831 (16.9% of revenue)
  • Foreign Exchange Loss: ₹(38)
  • Other Income, net: ₹315
  • Provision for Tax: ₹1,482 (4.3% of revenue)
  • Net Income: ₹4,624 (13.4% of revenue)

Cost Breakdown (₹ Crores):

  • Employee benefits expense: ₹19,692 (56.9% of revenue)
  • Outsourcing costs: ₹5,108 (14.8% of revenue)
  • Cost of hardware and software sold: ₹850 (2.5% of revenue)
  • Travel and conveyance: ₹368 (1.1% of revenue)
  • Software subscription fee: ₹363 (1.0% of revenue)
  • Facility Cost: ₹345 (1.0% of revenue)
  • Recruitment, training and development: ₹122 (0.4% of revenue)
  • Legal and professional charges: ₹216 (0.6% of revenue)
  • Communication costs: ₹190 (0.5% of revenue)
  • CSR Expense: ₹80 (0.2% of revenue)
  • Doubtful debts: ₹(49)
  • Other expenses: ₹424 (1.2% of revenue)

Balance Sheet Position (as of June 30, 2026):

  • Cash and Cash Equivalents: ₹9,188 crore ($971 million)
  • Accounts Receivables, net: ₹22,761 crore ($2,404 million)
  • Unbilled Receivables: ₹9,216 crore ($974 million)
  • Total Current Assets: ₹65,183 crore ($6,885 million)
  • Property and Equipment, net: ₹4,768 crore ($504 million)
  • Total Assets: ₹111,771 crore ($11,806 million)
  • Total Liabilities: ₹38,268 crore ($4,042 million)
  • Total Stockholders' Equity: ₹73,469 crore ($7,761 million)

Cash Flow (Quarter ended):

  • Net Operating Cash Flow: ₹2,992 crore ($317 million)
  • Free Cash Flow: ₹2,623 crore ($278 million)
  • Dividend paid: ₹6,492 crore ($685 million)
  • Gross Cash: ₹27,058 crore ($2,857 million)
  • Net Cash: ₹26,907 crore ($2,841 million)