HCL Tech Q1 FY27 Results: Net profit climbs 20.3% to ₹4,624 crore, EBIT margin widens to 16.9%; ₹12 interim dividend announced

HCL Technologies reported its Q1 FY27 results on July 14, 2026, announcing its June quarter numbers after market hours. India's third-largest IT services company also declared an interim dividend of ₹12 per equity share.

Revenue for the quarter came in at ₹34,579 crore, up 1.8% quarter-on-quarter from ₹33,981 crore in Q4 FY26, and 13.9% year-on-year from ₹30,349 crore a year earlier. In constant currency (CC) terms, revenue slipped 0.9% sequentially but was up 3% YoY, while services revenue rose 3.5% YoY in CC terms. Advanced AI revenue stood at $171 million, a 62.1% jump YoY and higher than the $155 million logged in the preceding quarter.

On profitability, the EBIT margin widened 40 basis points sequentially to 16.9%. Net income climbed 20.3% YoY to ₹4,624 crore from ₹3,843 crore in the year-ago quarter, aided by the 13.9% topline growth alongside a 60 basis point cushion from a lighter depreciation charge and a lower effective tax rate.

Deal bookings totalled $2.41 billion for the quarter, up from $1.94 billion in the March quarter, a sequential gain of roughly 24%. For FY26, total contract value stood at $9.32 billion.

HCL Tech Q1 FY27 results: Guidance held steady

HCL Technologies has stayed with its FY27 revenue growth guidance of 1%-4% in constant currency terms. It has also stuck with its services revenue growth guidance of 1.5%-4.5% YoY in CC terms and its EBIT margin guidance of 17.5%-18.5% for the fiscal year.

Both bands were left untouched. Even so, the 16.9% margin delivered in Q1 sits below the floor of the 17.5%-18.5% full-year range, leaving work to be done across the remaining three quarters. The company separately expects revenue deflation of 2-3% in FY27, a drag it traces to pricing pressure in AI-disrupted services.

The board declared an interim dividend of ₹12 per equity share, with the record date and payout schedule to be specified in the company's exchange filing.

HCL Tech Q1 FY27 results: What Kotak Neo Research says

Kotak Neo Research has stayed with a REDUCE rating while lifting its fair value to ₹1,200, up from ₹1,120 earlier. Against a market price of ₹1,221, that leaves the stock with a slight downside, and its view is that the current price already reflects the business at fair worth. The valuation rests on an unchanged 15x multiple applied to June 2028 estimated earnings per share.

On the numbers, the note found the quarter broadly in line on both revenue growth and margins. The 16.9% EBIT margin came in a shade better than the 16.8% it had penciled in, while net income ran 1.4% ahead of its estimate.

The note sees a few things working in the company's favour over FY27-28E: deal wins in the June quarter that it considers adequate, one mega deal in the bag, the pace of growth in advanced AI revenue, and a rise in the count of $2-crore accounts. Taken together, it believes these support services growth at, or a little above, the industry pace. It also points to a client mix that leans less on discretionary spending and on services most exposed to AI disruption than some peers. The stake in Sarvam and a phased entry into the data centre business, aimed at building out full-stack AI services, read to Kotak Neo Research as a deliberate way of spreading the company's bets on AI rather than concentrating them.

The counterweights, the note stated: it does not expect the recent wins to translate into meaningful revenue in the near term, and margins in the services business remain under strain, with restructuring costs now weighing on the P&L for a fourth quarter running.

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