Results for HCL Tech Q2FY26: Results for HCL Tech Q2FY26: On Monday, October 13, the IT giant HCL Technologies announced a consolidated profit of ₹4,235 crore for the current fiscal year's July–September quarter (Q2FY26).
Results for HCL Tech Q2FY26: On Monday, October 13, the IT giant HCL Technologies announced a consolidated profit of ₹4,235 crore for the July–September quarter of the current fiscal year (Q2FY26), which is attributable to the company's owners.The company declared a consolidated profit of ₹4,235 crore for Q2FY25 as well, therefore the profit figures stayed the same year over year (YoY).
However, profit increased by 10.2% on a sequential or quarter-on-quarter (QoQ) basis. For example, HCL Tech's consolidated profit in Q1FY26 was ₹3,843 crore.
For the reviewed quarter, consolidated revenue from operations was ₹31,942 crore, up 5.25 percent QoQ and 10.7 percent YoY. The company's revenue was ₹28,862 crore in Q2FY25 and ₹30,349 crore in Q1FY26.
"We are investing in new technologies and capabilities to unlock growth opportunities, and we continue to perform well despite the uncertain business environment." "Upskilling our global talent base is still a top priority and helps our clients innovate," stated HCL Tech Chairperson Roshni Nadar Malhotra.
For the reviewed quarter, consolidated revenue from operations was ₹31,942 crore, up 5.25 percent QoQ and 10.7 percent YoY. The company's revenue was ₹28,862 crore in Q2FY25 and ₹30,349 crore in Q1FY26.
"We are investing in new technologies and capabilities to unlock growth opportunities, and we continue to perform well despite the uncertain business environment." "Upskilling our global talent base is still a top priority and helps our clients innovate," stated HCL Tech Chairperson Roshni Nadar Malhotra.
Key takeaways from HCL Tech's Q2 results
Let's examine the following five important conclusions from HCL Tech's Q2 earnings:
1. The important numbers
HCL Tech's sales increased somewhat, by 2.4% QoQ and 4.6% YoY, in constant currency (CC) terms. However, dollar revenue climbed 2.8% on a quarter-over-quarter basis and 5.8% on a year-over-year basis to $3,644 million.
Revenue from HCL Tech's services division increased 2.5% on a quarterly basis and 5.5% on an annual basis.
Let's examine the following five important conclusions from HCL Tech's Q2 earnings:
1. The important numbers
HCL Tech's sales increased somewhat, by 2.4% QoQ and 4.6% YoY, in constant currency (CC) terms. However, dollar revenue climbed 2.8% on a quarter-over-quarter basis and 5.8% on a year-over-year basis to $3,644 million.
Revenue from HCL Tech's services division increased 2.5% on a quarterly basis and 5.5% on an annual basis.
To reach ₹5,550 crore, or 17.4% of revenue, EBIT in Indian rupees increased 12.3% QoQ and 3.5% YoY.
The company's EBIT was $637 million in dollars, or 17.5% of revenue, up 10.2% on a quarterly basis but down 0.5% on a year-over-year basis.
In comparison to 16.3% QoQ and 18.6% YoY, the EBIT margin for Q2FY26 was 17.5%. Restructuring expenditures had a 55 bps impact on the Q2FY26 EBIT margin.
The company's EBIT was $637 million in dollars, or 17.5% of revenue, up 10.2% on a quarterly basis but down 0.5% on a year-over-year basis.
In comparison to 16.3% QoQ and 18.6% YoY, the EBIT margin for Q2FY26 was 17.5%. Restructuring expenditures had a 55 bps impact on the Q2FY26 EBIT margin.
In Q2FY26, HCL Tech produced robust INR revenue growth of 5.2% QoQ and 10.7% YoY. With the past twelve months (LTM) FCF/NI ratio at 125%, this exceptional revenue growth is accompanied by improved profitability and strong cash generation, according to Shiv Walia, Chief Financial Officer of HCL Tech.
Walia stated, "We are happy to report that the LTM ROIC for the company is 38.6%, up 290 bps YoY, and for the services business is 45.3%, up 180 bps YoY. We are still committed to improving our capital efficiency."
Walia stated, "We are happy to report that the LTM ROIC for the company is 38.6%, up 290 bps YoY, and for the services business is 45.3%, up 180 bps YoY. We are still committed to improving our capital efficiency."
2. FY26 forecast for HCL Tech
The business stuck to its FY26 revenue and EBIT margin projections.
It anticipates that, in constant currency, its income will increase by 3% to 5% annually.
Instead of the previously anticipated 3-5 percent range, services revenue growth in CC is now anticipated to be between 4 and 5 percent YoY.
The EBIT margin could range from 17% to 18%.
The business stuck to its FY26 revenue and EBIT margin projections.
It anticipates that, in constant currency, its income will increase by 3% to 5% annually.
Instead of the previously anticipated 3-5 percent range, services revenue growth in CC is now anticipated to be between 4 and 5 percent YoY.
The EBIT margin could range from 17% to 18%.
3. Attrition and headcount at HCL Tech
Over the past 12 months, the company's attrition rate was 12.6%, down from 12.9% year over year.
During the quarter, HCL Tech added 5,196 new hires and 3,489 existing staff.
The company had 2,26,640 employees at the end of the September quarter, up 3,489 from 2,23,151 at the end of the June quarter of current fiscal year.
Over the past 12 months, the company's attrition rate was 12.6%, down from 12.9% year over year.
During the quarter, HCL Tech added 5,196 new hires and 3,489 existing staff.
The company had 2,26,640 employees at the end of the September quarter, up 3,489 from 2,23,151 at the end of the June quarter of current fiscal year.
4. The dividend
For the 91st consecutive quarter, HCL Tech declared an interim dividend of ₹12 per equity share of ₹2 each for Q2FY26. The aforementioned dividend's record date is October 17, 2025.
5. Offer TCV
By the end of Q2FY26, the new deal winners' total contract value (TCV) was $2,569 million. Throughout the quarter, the company closed a number of significant deals in the US, UK, and Europe.
For the 91st consecutive quarter, HCL Tech declared an interim dividend of ₹12 per equity share of ₹2 each for Q2FY26. The aforementioned dividend's record date is October 17, 2025.
5. Offer TCV
By the end of Q2FY26, the new deal winners' total contract value (TCV) was $2,569 million. Throughout the quarter, the company closed a number of significant deals in the US, UK, and Europe.
Strong execution, rising demand for our AI-powered products, and Advanced AI sales surpassing $100M this quarter made this a "standout quarter on every front," according to C Vijayakumar, CEO and Managing Director of HCL Tech.
Our fresh bookings, independent of any mega-deal, exceeded $2.5 billion for the first time. In line with our AI growth strategy, we increased our workforce by 3,489 while maintaining a 1.8% YoY rise in revenue per employee, Vijayakumar stated.
Our fresh bookings, independent of any mega-deal, exceeded $2.5 billion for the first time. In line with our AI growth strategy, we increased our workforce by 3,489 while maintaining a 1.8% YoY rise in revenue per employee, Vijayakumar stated.
0 Comments