HCLTech Q1FY26 results: PAT falls 10%, Rs 12 dividend

Earnings season focus shifts to July 13 results

India’s June-quarter earnings calendar picked up pace on July 13, with multiple companies scheduled to announce Q1FY27 results. The list included Bajaj Consumer Care, HCL Technologies, Nuvoco Vistas Corporation, ICICI Prudential Asset Management Company, Cella Space, IGC Industries, Khaitan Chemicals & Fertilizers, Leapfrog Engineering Services, Mahaveer Infoway, Plastiblends India, Sharp Investments, Simbhaoli Sugars, Shree Steel Wire Ropes, Virtual Global Education, and Vivo Bio Tech.

Among them, HCLTech’s numbers drew attention because the company combined modest sequential revenue growth with a sharper decline in profit, while also updating its outlook for FY26.

Key Q1FY26 headline numbers: revenue up, profit down

For the quarter ended June 2025 (Q1FY26), HCL Technologies reported revenue from operations of ₹30,349 crore, compared with ₹28,057 crore in the same quarter of FY25, as cited in the provided report.

Profitability was weaker year-on-year. HCL Technologies reported consolidated net profit (PAT) of ₹3,843 crore for Q1FY26, down from ₹4,257 crore a year earlier. The same report linked the decline to higher expenses and a one-time hit from a client bankruptcy.

On a sequential basis, the quarter saw a 10.7% fall in net profit, while revenue rose by 0.3%.

Margin and cost trends explained by the company

HCLTech reported EBIT of ₹4,942 crore, equivalent to an operating margin of 16.3% of revenue for Q1FY26. The company’s commentary attributed the margin impact to lower utilisation and additional investments in GenAI and go-to-market initiatives.

The financial table shared in the provided data shows that operating income fell on a quarter-on-quarter basis even as the company continued to spend across employee-related and operational lines.

Segment growth: what drove revenue momentum

According to the report, growth in Q1FY26 was led by:

• Technology and services (13.7%)
• Telecom and media (13%)
• Retail and CPG (8.2%)
• Financial services (6.8%)

The company also highlighted that services performance was supported by 4.5% YoY growth in constant currency.

Constant-currency growth and guidance update

HCLTech reported constant-currency (CC) revenue growth of 3.9% and also described demand conditions as uncertain, pointing to lower discretionary spending and delayed decision-making in certain parts of the business.

After the Q1 performance, the company revised its FY26 constant-currency revenue growth guidance to 3% to 5%, from the earlier 2% to 5%.

Dividend announcement and key dates

The company’s board declared an interim dividend of ₹12 per share.

In the provided report, the dividend schedule for FY26 was stated as:

• Record date: July 18, 2025
• Payment date: July 28, 2025

Separately, the provided text also mentioned another interim dividend timeline with July 23 as record date and August 1 as payment date for FY 2024-25. The FY26 dates above were explicitly linked to the Q1FY26 update.

Stock reaction: shares end lower

HCLTech shares closed 1.04% lower at ₹1,619.95 on the BSE, with the results stated to have been announced after market hours.

Table: HCLTech Q1FY26 financial snapshot (as provided)

Longer view: FY26 revenue, EBIT and management commentary

HCLTech’s management also referenced full-year FY26 performance in the provided material. The company reported FY26 revenue of ₹130,144 crore, up 11.2% YoY, with EBIT of ₹22,397 crore, representing 17.2% of revenue, up 4.6% YoY.

Shiv Walia, Chief Financial Officer, said the company delivered resilient FY26 results with the above revenue and EBIT figures.

Deal wins, digital contribution and software metrics

The provided text also outlined several operating metrics and business mix disclosures across periods:

• Digital revenue growth of 15.2% YoY in constant currency and contribution of 41.6% of Services (for Q1FY26 highlights).
• HCLSoftware ARR at USD 1,060 million (from USD 1.06B), up 1.3% YoY in constant currency.
• Total Contract Value (new deal wins) at USD 1,960 million (stated in the provided text).

For the June 2024 quarter, the text mentioned 11 key GenAI deal wins, including use cases in gaming review analysis and low-latency electronic trading, among others.

What investors should track next

The quarter’s key signal was the combination of year-on-year revenue growth with pressure on profit, alongside a guidance tweak that lifted the lower end of the FY26 CC revenue growth range. Investors will likely monitor how utilisation trends, discretionary spending, and the pace of decision-making evolve, given management’s comments about softness and delays.

Near-term attention will also remain on the company’s dividend record and payment dates, and on subsequent updates around deal momentum in the coming quarters, as referenced in the report.