HCL Technologies (HCLTECH) Q2 26/27 earnings summary

Executive summary

• Q2 revenue was ₹35,620 crore, up 2.6% YoY and 2.3% QoQ in constant currency; Services grew 4.0% YoY, and EBIT margin rose 131 bps QoQ to 18.2%.

• Bookings reached $3.258B, up 27% YoY; first-half bookings were a record high.

• Net income was ₹5,132 crore, up 21.2% YoY; an interim dividend of ₹12 per share was declared.

Financial highlights

• Q2 revenue from operations was ₹35,620 crore versus ₹31,942 crore YoY; U.S.-dollar revenue was $3,724M.

• EBIT was ₹6,465 crore, or 18.2% of revenue; excluding 84 bps of restructuring costs, EBIT margin was 19%.

• Net income was ₹5,132 crore, or 14.4% of revenue; diluted EPS was ₹70.22.

• H1 revenue was ₹70,199 crore and profit was ₹9,758 crore, versus ₹62,291 crore and ₹8,080 crore YoY.

• Inorganic revenue contribution was $35.6M, adding 97 bps to sequential growth; HPE Telco Solutions contributed ~$21M and Jaspersoft ~$15M.

Outlook and guidance

• FY27 constant-currency revenue growth guidance is 2.5%-4.0% overall and 3.0%-4.0% for Services; EBIT margin guidance is 17.5%-18.5%.

• Guidance includes inorganic growth contributions of 87 bps overall and 62 bps for Services; midpoint organic growth guidance was broadly unchanged.

• Services growth is expected slightly above the guidance midpoint; the large recently announced deal is expected to contribute from Q1 next year, with no revenue in Q3 or Q4.

• Medium-term desired EBIT margin remains 18%-19%, with capability and differentiation investments prioritized over margin optimization.