HCL Technologies (HCLTECH) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue reached ₹34,579 crore ($3,650M), up 1.8% QoQ and 13.9% YoY in INR; constant currency revenue up 0.5% QoQ and 12.6% YoY.

• Net income for Q1 FY27 was ₹4,626 crore ($488M), up 3.0% QoQ and 20.3% YoY; EPS (diluted) at ₹17.06 (INR 66.9 LTM), up 20.3% YoY.

• Advanced AI revenue reached $172 million, up 10.6% QoQ and 162.1% YoY in constant currency, reflecting strong AI-led momentum.

• Net new bookings hit a record $2.4 billion for Q1.

• Workforce stood at 223,889, with attrition at 12.7% LTM and revenue per employee up 3.3% YoY.

Financial highlights

• Operating margin improved to 16.9%, up 39 bps QoQ and 56 bps YoY; adjusted EBIT margin was 17.5%.

• Net income margin at 13.4%, including 47 bps restructuring cost.

• Free cash flow over the last 12 months was $1.98 billion; FCF/NI at 99%; OCF/NI at 111%.

• Gross cash stood at $2.86 billion and net cash at $2.84 billion as of June 30, 2026.

• Interim dividend of ₹12 per share declared; last 12 months payout at INR 60 per share (93.2% of net income).

Outlook and guidance

• FY27 constant currency revenue growth guidance retained at 1%-4%, with margin guidance of 17.5%-18.5%.

• Guidance excludes impact from acquisitions, including Jaspersoft.

• Mega deal signed in July will have negligible impact on FY27 revenue; steady state expected in FY28.

• Acquisition of Jaspersoft completed July 1, 2026, to be accounted for in the next quarter.