HCL Tech's Q1 results: Net profit falls 10% to ₹3,843cr
What's the story
HCL Technologies has announced a 10% drop in its consolidated net profit for the first quarter of FY26. The company's net profit stood at ₹3,843 crore, down from ₹4,257 crore in the same period last year. The figure is also lower than market expectations of ₹4,224 crore. Despite the decline in profit, HCL Tech has declared an interim dividend of ₹12 per share for FY25-26.
Revenue growth
Revenue from operations rises 8% YoY
HCL Technologies registered an 8% increase in its revenue from operations, which stood at ₹30,349 crore as against ₹28,057 crore in the same quarter last year. This figure also marginally exceeded market expectations of ₹30,340 crore. The company's topline saw a slight uptick of 0.3% compared to ₹30,246 crore in Q4 FY25.
Future outlook
FY26 revenue growth expectations
For FY26, HCL Technologies expects a revenue growth of 3-5% YoY in constant currency (CC). The services revenue growth is also tipped to be in the same range. The EBITDA margin is projected between 17% and 18%. Roshni Nadar Malhotra, Chairperson of HCL Technologies, emphasized the company's focus on ethical AI deployment and its positive social impact.
CEO remarks
Here's what the CEO said
C Vijayakumar, the CEO and Managing Director of HCL Technologies, said they had a healthy revenue growth of 3.7% YoY. This was driven by a strong performance in their services business with a 4.5% YoY surge in constant currency. He added that their operating margin stood at 16.3%, which was impacted by lower utilization and higher investments in generative AI initiatives.