HCLTech Q2 FY27 Profit Rises 21.2% as Revenue Hits ₹35,620 Crore

HCL Technologies reported Q2 FY27 net profit of ₹5,132 crore, up 21.2% year-on-year, while revenue from operations rose 11.5% to ₹35,620 crore for the quarter ended September 30, 2026. The company also raised its full-year constant-currency revenue growth guidance and declared an interim dividend of ₹12 per share.

What did HCLTech report for Q2 FY27?

HCLTech reported a sequential improvement in revenue, profit and operating margin during the September quarter. Revenue from operations increased 3.0% from ₹34,579 crore in Q1 FY27 and rose 11.5% from ₹31,942 crore in Q2 FY26. Net profit increased 11.0% sequentially from ₹4,626 crore and 21.2% from ₹4,235 crore a year earlier.

The company's EBIT margin reached 18.2%, expanding 131 basis points quarter-on-quarter and 71 basis points year-on-year. Net income represented 14.4% of revenue. Diluted earnings per share stood at ₹70.22, up 5.0% sequentially and 12.2% from the year-ago quarter.

The board declared an interim dividend of ₹12 per equity share of face value ₹2 for FY27. The record date was set as October 16, while the dividend payment date was October 26. The results point to stronger profitability alongside continued expansion in the company's services business.

What drove HCLTech's quarterly growth?

HCLTech attributed the quarter's performance to growth across services verticals and geographies, supported by deal wins and demand for artificial intelligence-led solutions. Services revenue grew 3.0% sequentially, while overall revenue increased 2.3% sequentially in constant currency terms.

The company's IT and business services revenue rose to ₹26,938 crore from ₹23,693 crore in the year-earlier quarter. Engineering and research and development services revenue increased to ₹5,973 crore from ₹5,423 crore. These gains helped offset a decline in HCL Software revenue, which fell to ₹2,709 crore from ₹2,826 crore a year earlier.

Advanced AI revenue grew 28.4% sequentially and 78.0% year-on-year in constant currency. HCLTech reported that its advanced AI revenue was $219 million during the quarter. The growth rate highlights the contribution of AI-related work to the company's services demand, although the company has not provided a separate rupee revenue figure for this business.

How strong were HCLTech's deal wins and hiring?

HCLTech reported net new deal wins worth $3.24 billion in Q2 FY27, while total new bookings rose 27% year-on-year to about $3.3 billion. The company said first-half bookings reached a record high, with a mega AI contract worth $1.14 billion from Mercedes-Benz included in the quarter's deals.

New bookings are a measure of contracted business and do not represent revenue recognised in the same quarter. Still, the disclosed deal flow provides visibility into the company's order pipeline and was cited alongside the increase in its full-year revenue growth outlook.

The company added 6,450 employees during the quarter after reducing headcount in the preceding quarter. Total employee count stood at 230,339 as of September 30, compared with 223,889 at the end of June. The increase came as HCLTech reported growth across its services operations.

Why did HCLTech raise its FY27 guidance?

HCLTech raised the lower end of its FY27 revenue growth guidance to 2.5% to 4.0% in constant currency terms, from an earlier range of 1.0% to 4.0%. It maintained its FY27 EBIT margin guidance at 17.5% to 18.5%.

For its services business, HCLTech expects constant-currency revenue growth of 3.0% to 4.0% for FY27. The revised outlook followed the Q2 growth in services, improved operating margin and strong booking activity. The guidance is stated in constant currency, which excludes the impact of foreign-exchange movements.

The update comes against a mixed demand environment for information technology companies. A brokerage assessment cited in the source expected large-cap IT firms to report quarterly constant-currency growth ranging from a decline of 0.5% to growth of 3.0%, reflecting a still-tepid macroeconomic backdrop. HCLTech's 2.3% sequential constant-currency revenue growth placed its reported quarter within that range.

How does the result matter to investors and the IT sector?

For investors, the main financial signals are the 21.2% year-on-year growth in net profit, the 18.2% EBIT margin and the upward revision in the lower end of revenue guidance. The dividend of ₹12 per share also provides a defined shareholder payout following the September-quarter result.

The quarter also shows the differing performance of HCLTech's business lines. IT and business services and engineering and R&D services recorded year-on-year revenue gains, while HCL Software revenue declined. This mix matters because it indicates which operations supported the overall increase in revenue and profitability.

The source also contains separate disclosures from HCL Infosystems Limited, including a reported Q2 revenue decline and a loss before tax. Those disclosures relate to a different listed company and should not be treated as HCLTech's financial performance. HCLTech's reported Q2 FY27 figures are the revenue, profit, margin, booking and guidance metrics discussed above.

Conclusion

HCLTech's Q2 FY27 performance combined higher revenue, faster profit growth and margin expansion. Revenue reached ₹35,620 crore and net profit reached ₹5,132 crore, while stronger services activity, AI-related revenue growth and new bookings supported the company's revised constant-currency revenue outlook.

Investors will next watch HCLTech's progress against its FY27 revenue growth guidance of 2.5% to 4.0%, services growth guidance of 3.0% to 4.0% and EBIT margin range of 17.5% to 18.5%. The conversion of new deal wins into reported revenue and the pace of AI-related growth will also remain relevant in subsequent results.