HCLTech Q2 Profit Jumps 21% to ₹5,132 Crore; Dividend ₹12

HCL Technologies reported a 21% rise in Q2 FY27 net profit to ₹5,132 crore on October 12, with revenue up 12% to ₹35,620 crore. It declared a ₹12 dividend and raised the lower end of revenue guidance.

HCLTech Q2 FY27 Results Against Brokerage Estimates

HCL Technologies announced its September quarter results after market hours on Monday. Net profit rose from ₹4,235 crore a year earlier, and it was 11% higher than in the June quarter. Revenue from operations grew 3% sequentially.

Ahead of the results, Business Standard had listed brokerage forecasts. The comparison below shows how the reported numbers compare with them, although the estimates were for adjusted profit and are not a like-for-like match.

Reported profit came in above both forecasts. Revenue landed between the two, below Kotak’s figure and above Axis Direct’s.

In constant currency terms, revenue rose 2.3% from the previous quarter and 2.6% from a year earlier.

Margins, Guidance and Dividend Dates

HCLTech’s EBIT stood at ₹6,465 crore, against ₹5,831 crore in the previous quarter and ₹5,550 crore a year earlier. The EBIT margin was 18.2%, up 131 basis points from the June quarter and 71 basis points from a year ago. The company said the margin included an 84 basis point impact from restructuring costs in the quarter.

The company kept its FY27 EBIT margin guidance at 17.5% to 18.5%. It now guides for constant currency revenue growth of 2.5% to 4% for the company and 3% to 4% for services. Earlier guidance for company revenue growth was 1% to 4%, so the lower end has moved up.

The board declared an interim dividend of ₹12 per equity share of face value ₹2. The record date is October 16, 2026, and payment is scheduled for October 26, 2026.

Services, Software and AI: Where Growth Came From

New deal wins stood at $3.26 billion for the quarter, and CEO C Vijayakumar said first-half bookings reached a record high. The segment numbers below, all in constant currency, show uneven growth.

1. Services overall: up 3% sequentially and 4% year on year
2. IT and Business Services: up 2.7% sequentially and 4.4% year on year
3. Engineering and R&D: up 4.1% sequentially and 2% year on year
4. HCL Software: down 5.8% sequentially and 11% year on year

HCL Software revenue stayed weak, but its EBIT margin improved to 20.1% from 17.6% in the June quarter.

Advanced AI revenue stood at $219 million, up 28.4% from the previous quarter and 78% from a year earlier in constant currency. Chairperson Roshni Nadar Malhotra said the accelerating growth in advanced AI revenue validates the company’s strategy. The IT services industry is dealing with slower discretionary spending and pricing pressure from automation, which gives the AI line extra attention.

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Verticals, Hiring and Cash Position

Financial services remained the largest vertical in the services business, contributing 22.4% of revenue and growing 7.1% year on year in constant currency. Retail and CPG was the fastest growing vertical at 14%. Technology and Services grew 5.9% and Manufacturing rose 3.9%, while Life Sciences and Healthcare and Telecommunications, Media, Publishing and Entertainment each declined 2.1%.

HCLTech’s headcount stood at 230,339 at the end of September, after net additions of 6,450 people during the quarter. The company added 6,136 freshers. Last twelve month attrition rose marginally to 12.8% from 12.7% in the June quarter.

Cash generation remained steady. Net operating cash flow for the quarter was ₹4,758 crore and free cash flow was ₹4,128 crore. Gross cash stood at ₹25,457 crore and net cash at ₹24,503 crore at the end of September.

HCLTech’s results follow TCS, whose better-than-expected September quarter numbers lifted IT stocks on October 9, when the Nifty snapped an eight-week losing streak. Wipro and Tech Mahindra are due to report later this week, according to PTI, which will give the next read on the sector.

The quarter also carried a cost item worth noting. The 84 basis point restructuring impact means the underlying margin, before that charge, was higher than the reported 18.2%, although the company’s own underlying margin figure was not part of the disclosures reported here.