HCL Technologies on Monday announced that it has reported a 10 per cent decline in its consolidated net profit for the first quarter (Q1) of FY26 at Rs 3,843 crore, compared to Rs 4,257 crore in the same quarter the previous year (Q1 FY25).
Despite the drop in profit, HCL Tech posted an 8 per cent year-on-year (YoY) growth in its revenue from operations, which rose to Rs 30,349 crore from Rs 28,057 crore in Q1 FY25, according to its stock exchange filing. On a sequential basis, the topline saw a marginal increase of 0.3 per cent from Rs 30,246 crore in the previous quarter.
The IT major also announced an interim dividend of Rs 12 per share for the financial year 2025-26. The record date for this dividend is July 18 and the payment will be made on July 28.
Looking ahead, the company expects its revenue and services revenue to grow between 3 per cent and 5 per cent in constant currency terms during FY26. The EBIT margin guidance remains between 17 per cent and 18 per cent, the company added in its filing.
Commenting on the results, Chairperson Roshni Nadar Malhotra said HCL Technologies is focused on the ethical deployment of artificial intelligence (AI) and believes AI is now integral to the growth strategies of global enterprises.
She added that the company’s strategic partnerships and capabilities ensure that its AI-led solutions deliver real value to clients. CEO and Managing Director C. Vijayakumar highlighted that revenue grew 3.7 per cent year-on-year (YoY) in constant currency, with services business growing by 4.5 per cent.
The company’s operating margin stood at 16.3 per cent, which he attributed to lower employee utilisation and increased investments in generative AI and go-to-market strategies. Vijayakumar added that HCL Tech’s AI solutions are resonating well with clients and that its recent partnership with OpenAI has further strengthened its position.
He noted that the company’s deal pipeline continues to grow in a stable demand environment, and that HCL Tech remains well-positioned for growth as the only IT service provider rated as ‘Customer’s Choice’ in all six Gartner Voice of Customer quadrants related to IT services.
