Noida-based IT firm HCLTech on Monday reported a 10% year-on-year decline in net profit for the quarter ending June 30. The net profit stood at ₹3,843 crore, compared to ₹4,257 crore in the same period last year—down 10.8% quarter-on-quarter (QoQ) and 9.7% year-on-year (YoY).
The company reported revenue of ₹30,349 crore during the quarter, reflecting an 8.2% YoY increase but flat growth sequentially. In constant currency (CC) terms, revenue declined by 0.8% QoQ but rose 3.7% YoY. On a last twelve months (LTM) basis, consolidated revenue crossed $14 billion.
“We had healthy revenue growth of 3.7% YoY, supported by good performance in our Services business with 4.5% YoY growth in constant currency. Our operating margin came in at 16.3%, impacted by lower utilisation and additional Gen AI and go-to-market (GTM) investments. Our AI propositions are resonating well with clients and have been further strengthened by our partnership with OpenAI. Our pipeline continues to grow as the demand environment remained stable during the quarter," said C Vijayakumar, CEO & Managing Director, HCLTech.
Segment-wise, HCLTech’s Services CC revenue saw a marginal dip of 0.1% QoQ but grew 4.5% YoY. Digital revenue surged 15.2% YoY in CC terms, contributing 41.6% to overall Services revenue. Meanwhile, HCLSoftware revenue declined 3.0% YoY in CC, while its Annual Recurring Revenue (ARR) reached $1.06 billion, up 1.3% YoY in CC.
The total contract value (TCV) of new deal wins during the quarter stood at $1.8 billion, down from $3 billion in the previous quarter. The company expects Services revenue to grow between 3.0% and 5.0% YoY in CC. EBIT margin guidance remains in the range of 17.0% to 18.0%.
HCLTech has revised its FY26 constant currency revenue growth guidance to 3–5%. In Q4, the company had projected a slightly more conservative outlook of 2.0–5.0% growth.
In terms of profitability, Earnings Before Interest and Taxes (EBIT) came in at ₹4,942 crore, down 9.2% QoQ but up 3.1% YoY.
HCLTech maintained a steady number of large clients in the $100 million+ category at 22, with no change on either a quarterly or yearly basis. The number of clients contributing $50 million or more annually rose to 54, up by 2 from the previous quarter and by 6 YoY. Clients in the $20 million+ bracket grew to 144, a sequential increase of 6 and an 11-client gain YoY. In the $10 million+ segment, the client count was 255—up 4 QoQ but down 1 YoY.
The company declared a dividend of ₹12 per share, marking its 90th consecutive quarter of dividend payout. HCLTech shares on fell by 1.51% on July 14 to close at Rs 1,613.50 apiece.
HCLTech’s total workforce stood at 223,151 as of Q1 FY26, with a net reduction of 269 employees during the quarter. However, it added 1,984 freshers. The last twelve-month (LTM) attrition rate remained steady at 12.8%, the same as in Q1 last year.
