IT services company HCLTech on Monday reported a 20.3% year-on-year (YoY) increase in consolidated net profit for the June quarter, supported by double-digit revenue growth, higher operating profit and record quarterly deal bookings. The company retained its FY27 guidance, citing a healthy pipeline and continued demand for AI-led services.
HCLTech reiterated its FY27 guidance and expects company revenue growth of 1.0%-4.0% YoY in constant currency (CC) terms, while services revenue growth is projected at 1.5%-4.5% YoY in CC. The company expects EBIT margin to be in the range of 17.5%-18.5%.
Chief executive officer and managing director C Vijayakumar said the guidance excludes acquisitions. "Pipeline remains healthy," he said, adding that the company continues to see strong growth in AI-native and AI-amplified services while traditional AI-disrupted services are being optimised through automation.
The company posted a consolidated net profit of Rs 4,624 crore in Q1 FY27, compared with Rs 3,843 crore in the same period last year. On a sequential basis, net profit increased 3.0%.
Revenue from operations rose 13.9% YoY to Rs 34,579 crore in the quarter ended June 30. On a quarter-on-quarter (QoQ) basis, revenue increased 1.8%. However, on a constant currency (CC) basis, overall revenue declined 0.5% QoQ and grew 2.6% YoY, while services revenue increased 3.5% YoY.
Vijayakumar said, “We recorded our highest ever Q1 net-new bookings of $2.4Bn and our Advanced AI business grew 10.6% QoQ and 62.1% YoY in constant currency terms. These demonstrate that enterprises are choosing us to lead their AI-led transformation.”
He said advanced AI revenue stood at $171 million during the quarter, taking annualised advanced AI revenue to $688 million. He added that the $2.4 billion in net new bookings did not include a mega deal signed in early July.
Earnings before interest and tax (EBIT) stood at Rs 5,831 crore, with an operating margin of 16.9%. The operating margin improved by 39 basis points sequentially and 56 basis points year on year.
Among geographies, the US grew 2.9%, Europe increased 0.1%, the rest of the world rose 10.8%, while India grew 16.9%.
Vijayakumar said discretionary spending remained weak in some sectors, with telecom continuing to see lower spending and parts of the manufacturing sector remaining under pressure. However, he said retail and consumer business grew 10% year on year, supported by the ramp-up of a large client engagement.
The company also announced a dividend of Rs 12 per equity share for the quarter.
Total headcount stood at 223,889 at the end of the quarter, with a net reduction of 3,292 employees. Trailing twelve-month attrition stood at 12.7%.
Vijayakumar said revenue per employee increased 3.3% year on year and has improved for five consecutive quarters, reflecting the company's AI strategy and productivity gains.
Chairperson Roshni Nadar Malhotra said, “AI is accelerating the transformation of global enterprises and unlocking new growth vectors for HCLTech. With our differentiated portfolio, we continue to demonstrate our ability to help clients leverage technology to drive their business strategies.”
