Date: October 12, 2026

Financial Performance Overview

HCLTech reported consolidated revenue of ₹35,620 Crores for Q2 FY27, representing a 3.0% quarter-on-quarter (QoQ) increase and an 11.5% year-on-year (YoY) increase. In US dollar terms, revenue was $3,724 million, up 2.0% QoQ and 2.2% YoY. Constant currency revenue growth was 2.3% QoQ and 2.6% YoY.

Net income reached ₹5,132 Crores (14.4% of revenue), showing strong growth of 11.0% QoQ and 21.2% YoY. Diluted EPS stood at ₹70.22, increasing 5.0% QoQ and 12.2% YoY.

The company declared a dividend of ₹12 per share for the quarter.

Profitability and Margins

EBIT margin was 18.2% for Q2 FY27, which included an 84 bps impact from restructuring costs. This represents an expansion of 131 basis points QoQ and 71 basis points YoY. Excluding restructuring costs, the underlying margin performance was stronger.

Free cash flow to net income ratio (on LTM basis) was 87%, while Return on Invested Capital (ROIC) stood at 41.2% on an LTM basis.

Segment Performance

Services Business (IT and Business Services + Engineering and R&D Services)

  • Services revenue represented 92.4% of total revenue
  • Grew 3.0% QoQ and 4.0% YoY in constant currency
  • IT and Business Services: 75.6% of revenue, grew 2.7% QoQ CC and 4.4% YoY CC
  • Engineering and R&D Services: 16.8% of revenue, grew 4.1% QoQ CC and 2.1% YoY CC
  • Services EBIT margin: 18.0% (including restructuring impact)

HCLSoftware Business

  • Represented 7.9% of total revenue
  • Declined 5.8% QoQ CC and 11.2% YoY CC
  • EBIT margin: 20.1% (including restructuring impact)
  • Annual Recurring Revenue (ARR): $1,134 million, showing 7.8% YoY CC growth

Advanced AI Performance

Advanced AI revenue reached $219 million, showing exceptional growth of 28.4% QoQ and 78.0% YoY in constant currency. This represents one of the fastest-growing segments for the company.

Vertical Performance

Revenue by vertical for Services business:

  • Financial Services: 22.4% (↑7.1% YoY CC)
  • Manufacturing: 18.3% (↑3.9% YoY CC)
  • Technology & Services: 14.3% (↑5.9% YoY CC)
  • Lifesciences & Healthcare: 13.8% (↓2.1% YoY CC)
  • Telecommunications, Media, Publishing & Entertainment: 12.0% (↓2.1% YoY CC)
  • Retail & CPG: 10.5% (↑14.0% YoY CC)
  • Public Services: 8.8% (↑1.2% YoY CC)

Geographic Performance

Revenue by geography for Services business:

  • USA: 56.1% (↑3.5% YoY CC)
  • Europe: 26.9% (↓0.3% YoY CC)
  • ROW: 13.6% (↑11.4% YoY CC)
  • India: 3.4% (↑21.8% YoY CC)

Bookings and Client Metrics

New deal wins (bookings) totaled $3,258 million in Q2 FY27, representing a 27% YoY increase. This took first-half bookings to a record high.

Client metrics showed improvement:

  • $100M+ clients: 23 (↑1 YoY)
  • $50M+ clients: 62 (↑8 YoY)
  • $20M+ clients: 161 (↑10 YoY)
  • $10M+ clients: 291 (↑33 YoY)

Client concentration decreased with top 5 clients contributing 11.4% of revenue (down from 12.4% YoY) and top 20 clients contributing 27.4% (down from 29.5% YoY).

Human Capital

Total headcount stood at 230,339 as of September 30, 2026, with net addition of 6,450 employees in the quarter. The company added 6,136 freshers during the quarter.

Attrition (LTM) was 12.8%, slightly up from 12.6% a year ago. Women employees represented 30.0% of the workforce, up from 29.3% YoY.

Revenue per employee was $65.4K per annum, showing a 2.4% YoY improvement. R&D expense increased to 1.9% of revenue from 1.5% YoY.

Cost Structure

Employee benefits expense was ₹19,828 Crores (55.6% of revenue), while outsourcing costs were ₹5,344 Crores (15.0% of revenue). Other significant costs included software subscription fees (₹415 Crores, 1.2% of revenue) and facility costs (₹354 Crores, 1.0% of revenue).

Balance Sheet and Cash Flow

Cash and cash equivalents stood at ₹10,046 Crores ($1,048 million) as of September 30, 2026. Gross cash position was ₹25,457 Crores ($2,656 million) with net cash of ₹24,503 Crores ($2,556 million) after accounting for borrowings of ₹954 Crores ($100 million).

Net operating cash flow was ₹4,758 Crores ($498 million) for the quarter. The company invested ₹630 Crores ($66 million) in PP&E and intangibles, resulting in free cash flow of ₹4,128 Crores ($432 million).

FY27 Guidance

HCLTech maintained its FY27 guidance:

  • Company revenue growth: 2.5% to 4.0% YoY in constant currency
  • Services revenue growth: 3.0% to 4.0% YoY in constant currency
  • EBIT margin: 17.5% to 18.5%

Management Commentary

Roshni Nadar Malhotra, Chairperson, stated that accelerating growth in Advanced AI revenue validates the company's business strategy and strategic partnerships across the full AI stack.

The CEO highlighted strong quarterly performance with record bookings, margin expansion, and the company's highest-ever quarterly net income. He emphasized the company's focus on capital efficiency, resulting in LTM ROIC of 41.2% (up 261 bps YoY).

Key Deal Wins

The release highlighted numerous significant deal wins across various sectors including AI factory implementations, digital transformation projects, and cloud operations consolidation with major global companies in technology, manufacturing, financial services, healthcare, and retail sectors.

Awards and Recognitions

HCLTech received multiple recognitions including being named to TIME's World's Best Companies list for the third consecutive year, Forbes' World's Best Employers, and numerous leadership positions in analyst reports from Gartner, IDC, Forrester, and Everest Group.