HCL Technologies Reports Flat Q2 Net Profit at ₹4,235 Crore Amidst Robust Revenue Growth

Introduction:
HCL Technologies has announced its financial results for the second quarter of FY26, reporting a consolidated net profit of ₹4,235 crore, consistent with the same period last year. Despite the flat profit, the company achieved a significant revenue increase of 10.6% year-on-year, totaling ₹31,942 crore. This performance underscores HCLTech’s resilience and strategic focus on expanding its service offerings.

Revenue Performance:
The company’s revenue growth was primarily driven by strong demand across its service lines, particularly in engineering and R&D services. Notably, HCLTech’s advanced AI services contributed over $100 million to the revenue, highlighting the growing importance of AI in its business portfolio. The firm secured new deals worth $2.56 billion during the quarter, marking a 15.8% increase compared to the previous year.

Profit and Margin Analysis:
While the net profit remained unchanged year-on-year, HCLTech reported a 10.2% sequential increase from the previous quarter. Operating margins improved to 17.5%, reflecting the company’s efforts in cost optimization and operational efficiency. The margin expansion was also supported by favorable currency movements and a more favorable revenue mix.

Employee and Operational Metrics:
HCLTech’s workforce grew by 3,489 employees during the quarter, bringing the total headcount to 226,640. The company onboarded 5,196 freshers, demonstrating its commitment to talent acquisition and development. The attrition rate decreased to 12.6% from 12.9% in the same quarter last year, indicating improved employee retention.

Dividend Announcement:
The Board of Directors declared an interim dividend of ₹12 per equity share for FY26, with the record date set for October 17, 2025, and the payment date on October 28, 2025. This move reflects the company’s stable cash flow and commitment to delivering value to its shareholders.

Outlook for FY26:
HCLTech has maintained its revenue growth guidance for FY26 at 3–5% year-on-year in constant currency. The company also expects its operating margin to be in the range of 17–18% for the full fiscal year. These projections are based on a strong deal pipeline and continued demand for its services across various sectors.

Conclusion:
HCL Technologies’ Q2 results reflect a balanced performance, with steady profitability and robust revenue growth. The company’s strategic focus on high-growth areas like AI and its efforts in operational efficiency position it well for sustained growth in the coming quarters. For investors and stakeholders, HCLTech’s consistent performance and forward-looking strategies offer a positive outlook amidst a dynamic global IT services landscape.