The IT major continues to expect constant currency revenue growth of 1%-4% and an EBIT margin of 17.5%-18.5% for FY27.
Consolidated net profit rose 20.3% year-on-year to ₹4,624 crore, higher than the CNBC-TV18 poll estimate of ₹4,588 crore. Revenue from operations increased 14% to ₹34,579 crore, above the poll estimate of ₹34,338 crore.
Dollar revenue came in at $3.65 billion, compared with the CNBC-TV18 poll estimate of $3.633 billion. Constant currency revenue declined 0.5% sequentially, versus the poll estimate of a 1.1% decline.
Revenue from operations rose 14% year-on-year to ₹34,579 crore from ₹30,349 crore a year earlier. In dollar terms, revenue declined 0.9% sequentially to $3.65 billion, compared with Street expectations of a 1.3% decline, while constant currency revenue fell 0.5% quarter-on-quarter, against estimates of a 1% decline.
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EBIT stood at ₹5,831 crore, ahead of the CNBC-TV18 poll estimate of ₹5,782 crore, while the EBIT margin expanded to 16.86% from 16.5% in the March quarter and was marginally above the poll estimate of 16.8%.
Services revenue increased 14.9% year-on-year and 1.7% sequentially to ₹31,748 crore during the June quarter. The IT and Business Services business grew 4.2% year-on-year and remained flat sequentially, while Engineering and R&D Services revenue rose 0.3% from a year ago but declined 3.7% quarter-on-quarter.
The company reported its highest-ever first-quarter net new bookings of $2.4 billion, excluding a mega deal signed in early July. HCLTech said bookings were well diversified across verticals, geographies and business segments, including an AI-led transformation mandate from a Europe-headquartered Fortune Global 50 company.
Commenting on the results, CEO and Managing Director C Vijayakumar said client adoption of HCLTech’s advanced AI offerings continued to accelerate. Advanced AI revenue rose 10.6% sequentially and 62.1% year-on-year to $171 million, taking the annualised run rate to $688 million.
Vijayakumar said the company expects AI-led services to remain a key growth driver in FY27 and will continue to innovate faster to stay ahead of AI-led pricing pressures.
HCLTech said its Advanced AI business continued to gain momentum, with revenue growing 10.6% quarter-on-quarter and 62.1% year-on-year in constant currency terms.
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Shiv Walia, Chief Financial Officer, said that over the last 12 months, the company generated operating cash flow of ₹19,258 crore and free cash flow of ₹17,843 crore. Operating cash flow conversion stood at 107% of net income, while free cash flow conversion was 99%.
As of June 30, HCLTech’s gross cash stood at ₹27,058 crore, while net cash was ₹26,907 crore.
Employee attrition on a last-twelve-month basis stood at 12.7%, compared with 12.5% in the March quarter. Headcount declined by 3,292 employees sequentially to 223,889.
The board declared an interim dividend of ₹12 per equity share for FY27. The record date has been fixed as July 17, while the dividend will be paid on July 27. The company also completed the acquisition of Jaspersoft, a business unit of Cloud Software Group, on July 1 following regulatory approvals.
The company also completed the acquisition of Jaspersoft, a business unit of Cloud Software Group, on July 1, following regulatory approvals. HCLTech said the acquisition would strengthen its AI and data capabilities.
Vijayakumar also highlighted the company’s investment in Sarvam AI, saying it would help build a full-stack AI platform spanning models, applications and managed services, while opening up opportunities in India’s sovereign AI market.
Shares of HCL Technologies ended 5.15% higher at ₹1,224 ahead of the earnings announcement. The stock has declined 25% so far this year.
