HCL Technologies announced its Q2 FY27 results on 12 October 2026: revenue of ₹35,620 crore (up 11.5% year-on-year), net profit of ₹5,132 crore (up 21.2% year-on-year), an EBIT margin of 18.2%, and an interim dividend of ₹12 per share. This article breaks down HCLTech's five-year financial performance — revenue growth, profitability, margins, balance sheet strength, key ratios, segment split, shareholding, dividends — and compares it with its IT peers. All figures are consolidated unless stated otherwise.
HCL Technologies: Business Overview
HCL Technologies Ltd (NSE: HCLTECH; BSE: 532281) is one of India's top-four IT services companies, headquartered in Noida. It provides application development, cloud migration, cybersecurity, infrastructure management, engineering and product design services, plus software products through its HCLSoftware division. Its clients include large banks, hospitals, telecom companies and manufacturers, often under multi-year contracts. The company is led by Chairperson Roshni Nadar Malhotra and CEO & Managing Director C. Vijayakumar. Alongside the Q2 results, HCLTech announced a partnership with Anthropic to build enterprise solutions around Claude and Claude Code.
Q2 FY27 Results (Announced 12 October 2026)
For the quarter ended 30 September 2026, HCLTech reported:
| Metric (Q2 FY27) | Value | QoQ | YoY |
|---|---|---|---|
| Revenue from operations | ₹35,620 crore | +3.0% (₹34,579 cr in Q1) | +11.5% (₹31,942 cr in Q2 FY26) |
| EBIT | ₹6,465 crore | +10.9% | — |
| EBIT margin | 18.2% | +131 bps | +71 bps |
| Net profit | ₹5,132 crore | +11% (₹4,626 cr in Q1) | +21.2% |
| New deal bookings | $3.26 billion | — | +27% |
| Advanced AI revenue | $219 million | +28.4% (CC) | +78% (CC) |
Key highlights: the margin expansion beat analyst expectations (the reported 18.2% included an 84-basis-point restructuring impact), and deal wins included a $1.14 billion mega AI contract from Mercedes-Benz. Management raised the lower end of its FY27 revenue growth guidance to 2.5–4% in constant currency (from 1–4% earlier), with services growth guided at 3–4% and the full-year EBIT margin band retained at 17.5–18.5%. The board declared an interim dividend of ₹12 per share with a record date of 16 October 2026 and payment on 26 October 2026. (Sources: Financial Express live coverage, IANS, ET Now, 12–13 Oct 2026.)
Revenue Trend: FY22 to FY26
HCLTech's consolidated revenue grew from ₹85,651 crore in FY22 to ₹1,30,144 crore in FY26 — a five-year CAGR of roughly 11% (figures from the company's investor filings).
| Financial year | Revenue (₹ crore) | YoY growth | Net profit (₹ crore) | EBIT margin | Net margin |
|---|---|---|---|---|---|
| FY22 | 85,651 | — | 13,499 | 18.9% | 15.8% |
| FY23 | 1,01,456 | +18.5% | 14,851 | 18.2% | 14.6% |
| FY24 | 1,09,913 | +8.3% | 15,702 | 18.2% | 14.3% |
| FY25 | 1,17,055 | +6.5% | 17,390 | 18.3% | 14.9% |
| FY26 | 1,30,144 | +11.2% | 16,642 | 17.2% | 12.8% |
Net profit is consolidated profit after minority interest per the company's Ind AS filings. FY26 profit dipped 4.3% despite 11.2% revenue growth because of a one-time ₹956 crore charge related to India's new labour codes; excluding that impact, the underlying EBIT margin was 17.2%.
Profitability and Margins
HCLTech's operating margin has stayed remarkably stable through a weak IT demand cycle: EBIT margin was 18.9% in FY22, 18.2–18.3% in FY23–FY25, and 17.2% in FY26 (after the labour-code charge). Net margin compressed from 15.8% in FY22 to 12.8% in FY26 as employee costs and restructuring weighed. The Q2 FY27 margin rebound to 18.2% — the upper half of the full-year guidance band — is the key trend to watch.
Balance Sheet Strength
- Near debt-free: long-term debt-to-equity is 0.00x; interest cover is about 25x (per filed-result data).
- Cash generation: FY26 operating cash flow was ₹19,975 crore against capex of ₹1,422 crore, leaving free cash flow of ₹18,553 crore. The company reported OCF-to-net-income of 115% and FCF-to-net-income of 107%.
- Dividend payout: the company returns most earnings to shareholders — the payout ratio was around 88% in FY26.
Key Ratios (FY26)
| Ratio | FY26 value |
|---|---|
| Return on equity (ROE) | 23.0% |
| Return on capital employed (ROCE) | 31.2% |
| Return on invested capital (LTM) | 40.3% (Services 47.0%, HCLSoftware 22.6%) |
| Long-term debt-to-equity | 0.00x |
| Interest cover | ~25x |
| Price-to-earnings (Oct 2026) | ~18–22x (live market data; ~18.4x per Finnhub) |
| Market capitalisation (Oct 2026) | ~₹3.2 lakh crore (live market data) |
Segment-Wise Revenue Split (FY26)
HCLTech reports three segments. IT & Business Services is the core engine (about 74% of revenue), Engineering & R&D is the second growth lever, and HCLSoftware is the higher-margin products business:
| Segment (FY26) | Revenue (₹ crore) | Share | Segment EBIT margin |
|---|---|---|---|
| IT & Business Services | 96,094 | 73.8% | 16.0% |
| Engineering & R&D Services | 22,056 | 16.9% | 16.8% |
| HCLSoftware | 11,994 | 9.2% | 26.5% |
In Q2 FY27, segment EBIT margins were: IT & Business Services 18.6% (up 229 bps YoY), Engineering & R&D 15.2% (down 231 bps YoY), and HCLSoftware 20.1% (down from 26.5% a year ago). The software segment is lumpy — its quarterly revenue moves sharply with renewals and acquisitions.
Shareholding Pattern (June 2026)
| Shareholder category | Holding |
|---|---|
| Promoters & promoter group | 60.88% |
| Foreign institutional investors (FIIs) | 14.9% |
| Mutual funds | 9.04% |
| Public & others | ~15.2% |
| Promoter shares pledged | 0% |
Per the company's June 2026 filing, the promoter group (the HCL group family trusts) holds 60.88% of the equity, with no shares pledged. Source: hcltech.com shareholding-pattern filing; Equitymaster.
Dividend History
- FY26: total dividends of ₹54 per share paid (payout ratio ~88%), per Equitymaster data.
- Q4 FY26: ₹24 per share interim dividend declared in April 2026.
- Q2 FY27: ₹12 per share interim dividend — record date 16 October 2026, payable 26 October 2026.
- The company's dividend yield has stayed around 4–5%, among the highest in the large-cap IT pack.
Peer Comparison (FY26, Consolidated)
| Company | Revenue (₹ crore) | Net profit (₹ crore) |
|---|---|---|
| TCS | 2,67,021 | 49,210 |
| Infosys | ~1,78,000 | 29,440 |
| HCLTech | 1,30,144 | 16,642 |
| Wipro | 92,624 | 13,197 |
| Tech Mahindra | 56,815 | 4,811 |
HCLTech is India's third-largest IT services company by revenue. Its FY26 EBIT margin of 17.2% sits below TCS (~25%) and Infosys (~21%) but above Wipro (~16.5%) and Tech Mahindra (~12.2%), per company filings and YES Securities estimates. HCLTech's differentiator is its engineering/R&D heritage and the high-margin HCLSoftware product business.
Also read: TCS Financial Breakdown: Revenue, Profit & Ratios · Zero to IPO: The Infosys Story
Key Risks
- AI-driven deflation: management itself has flagged that AI is causing 2–3% annual deflation in traditional IT services pricing.
- Weak discretionary spending: clients are delaying decisions; FY27 revenue growth guidance is modest at 2.5–4%.
- Software lumpiness: HCLSoftware's revenue and margin swing sharply quarter to quarter.
- Margin pressure: engineering & R&D margins fell 231 bps YoY in Q2 FY27; wage hikes and restructuring costs persist.
- Competition: TCS and Infosys are growing their AI-led offerings aggressively.
FAQs
What was HCLTech's Q2 FY27 net profit?
₹5,132 crore for the quarter ended 30 September 2026, up 21.2% YoY and 11% QoQ.
What is the HCLTech Q2 FY27 dividend record date?
16 October 2026, for the ₹12 per share interim dividend; payment is on 26 October 2026.
Who are HCLTech's promoters and how much do they hold?
The promoter group (HCL group family trusts) holds 60.88% of the equity as of June 2026, with zero pledged shares.
What are HCLTech's business segments?
IT & Business Services (~74% of FY26 revenue), Engineering & R&D Services (~17%), and HCLSoftware (~9%).
Is HCLTech debt-free?
Effectively yes — long-term debt-to-equity is 0.00x and interest cover is about 25x.
What is HCLTech's FY27 revenue guidance?
2.5–4% constant-currency growth (total), 3–4% for services, with an EBIT margin band of 17.5–18.5%.
Conclusion
HCLTech delivered its strongest quarter in a while in Q2 FY27: 11.5% revenue growth, a 21.2% profit jump, an 18.2% EBIT margin, record deal bookings and surging AI revenue. Over five years, revenue has compounded at ~11% while margins stayed resilient around 17–19%. The balance sheet is near debt-free, cash generation is strong, and the 23% ROE with an ~88% dividend payout makes it a steady compounder rather than a high-growth name. The key variables from here are whether AI-led deals offset pricing deflation in traditional services and whether HCLSoftware returns to its 25%+ margins. This article is educational content, not investment advice — please do your own research or consult a registered advisor before making investment decisions.