HCL Tech Q1 FY27 Results: Profit Jumps 20% YoY; Kotak Neo Research Retains 'Reduce' Rating, Raises Fair Value

HCL Technologies reported a strong set of earnings for the quarter ended June 30, 2026 (Q1 FY27), with consolidated net profit rising 20.3% year-on-year (YoY) to ₹4,624 crore, supported by healthy revenue growth and improved operating margins.

Revenue from operations increased 13.9% YoY to ₹34,579 crore from ₹30,349 crore in the year-ago period. On a sequential basis, revenue grew 1.8%, while net profit was up 3% from the March quarter.

The IT major also maintained its FY27 growth guidance, declared an interim dividend of ₹12 per share and reported its highest-ever first-quarter net new bookings of $2.4 billion.

HCL Tech FY27 Guidance Remains Unchanged

HCL Tech retained its FY27 guidance and expects revenue to grow 1%-4% in constant currency during the current financial year.

The company expects services revenue growth of 1.5%-4.5% in constant currency, while EBIT margin is projected to remain in the range of 17.5%-18.5%.

Commenting on the performance, CEO and Managing Director C Vijayakumar said HCL Tech recorded its highest-ever first-quarter net new bookings of $2.4 billion, while the continued growth in its Advanced AI business reflected rising enterprise demand for AI-led transformation.

The board declared an interim dividend of ₹12 per equity share of face value ₹2 each for FY27.

The record date for the dividend has been fixed as July 17, 2026, while the dividend will be paid on July 27, 2026.

HCL Tech Q1 Deal Wins, AI Revenue And Business Performance

HCL Tech reported net new bookings of $2.407 billion, the highest ever for a June quarter.

Revenue from its Advanced AI business rose 62.1% YoY and 10.6% sequentially in constant currency to $171 million.

Among business segments, IT & Business Services grew 4.2% in constant currency, while Engineering & R&D Services was up 0.3%. HCLSoftware revenue declined 5.3%.

The Public Services vertical led growth at 12%, followed by Retail & CPG at 10.1%, Technology & Services at 7.3% and Financial Services at 5.3%. Telecommunications, Media, Publishing & Entertainment remained the weakest-performing vertical, declining 10.9%.

India was the fastest-growing geography with 16.9% growth, while the US grew 2.9% and Europe 0.1% in constant currency terms.

The company's attrition rate stood at 12.7% during the quarter, compared with 12.5% in Q4 FY26.

Chairperson Roshni Nadar Malhotra said AI continues to reshape enterprise technology spending globally, adding that HCL Tech remains focused on strengthening its AI capabilities while investing in workforce upskilling.

HCL Tech Share Price Today

Despite reporting a strong set of Q1 FY27 results, HCL Technologies shares came under selling pressure on Tuesday, July 14. As of 11:20 am, the stock was trading at ₹1,183.00 on the BSE, down more than 3% for the day.

The stock has gained around 8% over the past one month. However, it has declined 16% in the last three months, 28% over six months and 26% in the past one year.

HCL Tech hit its 52-week high of ₹1,770 in February 2026, while its 52-week low of ₹1,030 was recorded on July 1, 2026.

HCL Tech Q1 FY27 Results: Kotak Neo Research View

Kotak Neo Research believes HCL Tech delivered an in-line quarter, with both revenue growth and margins meeting expectations. More importantly, the company retained its FY27 revenue and margin guidance despite an uncertain demand environment, reflecting confidence in business execution.

The report noted that HCL Tech continues to benefit from healthy deal wins, strong momentum in its Advanced AI business and relatively lower exposure to discretionary spending compared with some peers. It also highlighted the company's growing base of large clients and investments in AI capabilities as positives that could support growth over the next two years.

That said, Kotak Neo Research remains cautious on valuations. It noted that large deal ramp-ups are likely to remain gradual, restructuring costs have continued for a fourth straight quarter and AI-led revenue deflation could weigh on services growth during FY27. We retained ‘Reduce' rating on HCL Tech while raising its fair value to ₹1,200 from ₹1,120.

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