HCLTech Q1 net up 20%, record $2.4B bookings, AI revenue jumps 62%
Revenue grows 13.9% to ₹34,579 cr; interim dividend ₹12. FY27 guidance unchanged.
— 14 earlier stories on HCL Technologies Ltd. →What's new
- Net income up 20.3% YoY to ₹4,624 crore; EBIT margin 16.9% after 62 bps restructuring.
- Record net new bookings of $2.4 billion in the quarter.
- Advanced AI revenue surges 62.1% YoY in constant currency.
- Maintains FY27 guidance: revenue growth 1-4%, EBIT margin 17.5-18.5%.
- Headcount declines by 3,292; 1,056 freshers added.
Why this matters
Record bookings and accelerating AI revenue show HCLTech's AI bet is paying off, but unchanged guidance and margin pressure from restructuring costs temper the outlook. At 17.9x trailing P/E, the stock is cheap, but the margin path to the guided band is the key test.
What we're watching
- Whether EBIT margin climbs back to 17.5-18.5% range by year-end.
- Conversion of $2.4B bookings into revenue in coming quarters.
- Headcount trajectory and utilization rates post-restructuring.
The full read
HCLTech delivered a solid Q1: revenue up 13.9% to ₹34,579 crore, net income up 20.3% to ₹4,624 crore, and a record $2.4 billion in new bookings. The standout metric is Advanced AI revenue, which surged 62.1% year-on-year in constant currency — a clear payoff from the company's AI push. Yet the headline strength comes with caveats. EBIT margin of 16.9% missed the guided band of 17.5-18.5% due to 62 bps of restructuring costs. Management chose to leave FY27 guidance unchanged, implying the second half may not match Q1's pace. The interim dividend of ₹12 per share is a nice kicker, but the margin path and conversion of the record order book will determine whether the stock's 17.9x trailing P/E is cheap or fair. It's a good quarter, not a great one.
Questions answered
- Why did HCLTech maintain its FY27 guidance despite a strong Q1?
- Management likely wants to keep room for uncertainty, especially with margin impacted by restructuring costs. The guidance band of 1-4% constant currency growth still leaves room for a weaker second half.
- What is the base for Advanced AI revenue that grew 62%?
- HCLTech does not disclose absolute AI revenue, but the 62.1% constant currency growth indicates a material and accelerating contribution from AI services, likely aided by the recent $1.14B AI deal.
- How much did restructuring costs impact the margin?
- Restructuring costs of 62 basis points dragged EBIT margin to 16.9%. Excluding that, core margin would have been about 17.5%, at the lower end of the guided band.
- How does the interim dividend compare to previous payouts?
- HCLTech declared an interim dividend of ₹12 per share, consistent with its practice of generous payouts. At current prices, the yield is around 2.5%.
- How does Q1 revenue compare to the previous quarter?
- Q1 revenue of ₹34,579 crore rose from ₹33,981 crore in Q4 (March 2026 quarter), a sequential increase of about 1.8%, though dollar growth may differ.
- Is the headcount decline a concern for growth?
- Headcount fell by 3,292, but the addition of 1,056 freshers suggests a shift towards younger talent. This could improve margins over time, but near-term attrition may need watching.
HCL Technologies Ltd.
Latest quarter · Mar 2026
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Story so far
All notes on HCLTECH →- 13 Jul 2026 · 5:50 PM IST HCLTech Q1 net up 20%, record $2.4B bookings, AI revenue jumps 62%
- today HCLTech's full-stack AI bet: record $2.4B bookings, ₹3,500 cr
- today HCLTech to invest ₹3,500 cr in AI data centers, enters full-stack AI market
- today HCLTech Q1 revenue rises 14%, net profit climbs to ₹4,624 cr; ₹12 dividend maintained
- today HCL Tech Q1 revenue up 14%, profit rises 20%, declares ₹12 dividend