HCLTech Q2 FY2027 Earnings: Revenue Hits $3.724 Billion; Profit Jumps 21.2%

Quick Verdict

HCLTech Q2 FY2027 Earnings reflected strong financial performance, with reported revenue of ₹35,620 crore ($3.724 billion), net profit of ₹5,132 crore, and diluted EPS of $0.20 under IFRS. Shares climbed as much as 7.16% the following session as stronger margins, accelerating AI revenue and improved annual guidance outweighed softer software performance and modest revenue disappointment.

About HCL Technologies Limited

HCL Technologies Limited, branded HCLTech, is a Noida-headquartered global technology company listed on the National Stock Exchange under HCLTECH and the BSE under scrip code 532281. Established on November 12, 1991, the company provides IT and business services, engineering and research-and-development services, and enterprise software. Its capabilities span artificial intelligence, cloud, digital transformation, cybersecurity, and technology infrastructure.

As of September 30, 2026, HCLTech employed 230,339 people, after adding 6,450 employees during the quarter, including 6,136 freshers. The company operates across more than 60 countries and serves financial services, manufacturing, healthcare, technology, telecommunications, retail and public-sector customers.

Consolidated revenue for the trailing 12 months reached $14.8 billion. Using its approximately 271.37 crore issued shares and the reported October 13 intraday price of ₹1,296.60 implies an indicative market capitalization of roughly ₹3.52 lakh crore—not a verified closing valuation. The board also declared an interim dividend of ₹12 per share.

Top Financial Highlights

1. Total revenue: ₹35,620 crore, up 11.5% year over year and 3.0% sequentially; reported dollar revenue reached $3.724 billion, up 2.2% year over year.
2. Constant-currency revenue growth: 2.6% year over year and 2.3% sequentially, separating underlying growth from exchange-rate translation.
3. Net income: ₹5,132 crore, up 21.2% year over year and 11.0% sequentially—the company’s highest-ever quarterly net income.
4. Quarterly diluted EPS: $0.20 under IFRS, compared with $0.18 a year earlier. The ₹70.22 EPS featured in the investor presentation is an adjusted trailing-12-month figure, not quarterly EPS; including the one-time New Labour Codes impact, trailing diluted EPS was ₹67.56.
5. Operating profit and margin: EBIT reached ₹6,465 crore; EBIT margin rose to 18.2%, expanding 131 basis points sequentially and 71 basis points year over year. The margin includes an 84-basis-point restructuring-cost impact.
6. Gross margin: approximately 34.4%, calculated from IFRS revenue of $3,724 million less cost of revenues of $2,442 million. Depreciation and amortization are presented separately in these statements.
7. Operating cash flow: $815 million for H1 FY2027, versus $1,112 million a year earlier, a decline of approximately 26.7%. This is a six-month figure, not quarterly cash flow.
8. Cash on hand: cash and cash equivalents totaled $1.048 billion at September 30, 2026. Other bank balances of $1.081 billion were disclosed separately and should not be conflated with cash equivalents.
9. IT and Business Services: represented 75.6% of consolidated revenue before inter-segment elimination—approximately $2.815 billion using the rounded revenue share—and grew 4.4% year over year in constant currency.
10. Engineering and R&D Services: accounted for 16.8% of revenue before inter-segment elimination—approximately $626 million—and grew 2.1% year over year in constant currency.
11. HCLSoftware: quarterly revenue was $294 million, versus $333 million a year earlier, while constant-currency revenue declined 11.2%. Annual recurring revenue reached $1.134 billion.
12. Advanced AI: revenue reached $219 million, up 78.0% year over year and 28.4% sequentially in constant currency, equivalent to an annualized run rate of $876 million.
13. New deal bookings: totaled $3.258 billion, approximately 27% higher year over year; management described first-half bookings as a record.
14. Guidance: FY2027 revenue growth is now expected at 2.5%–4.0% in constant currency, with services growth of 3.0%–4.0% and EBIT margin of 17.5%–18.5%. No standalone next-quarter guidance was identified in the reviewed release.
15. Half-year performance and shareholder return: H1 IFRS revenue reached $7.374 billion, versus $7.189 billion, while net income increased to $1.026 billion from $936 million. The newly declared quarterly dividend was ₹12 per share.

Beat or Miss?

The quarter delivered a mixed result against expectations: revenue growth disappointed modestly, but operating profitability exceeded consensus. Nomura’s assessment, reported by Business Today, put sequential constant-currency revenue growth at 2.3%, versus a 2.7% consensus expectation, while EBIT margin reached 18.2%, versus 17.6% expected.

The distinction matters: higher rupee revenue growth does not imply equivalent underlying growth. HCLTech reported 11.5% revenue growth in rupees, compared with 2.2% in dollars and 2.6% in constant currency.

What Leadership Is Saying

“Advanced AI revenue grew 28.4% QoQ and 78% YoY in constant currency. Our AI propositions are resonating well with our clients, giving us confidence in our growth trajectory.” — C Vijayakumar, CEO and Managing Director, HCLTech.

“HCLTech delivered Q2 FY27 revenue of ₹35,620 crores, up 3% QoQ and 11.5% YoY. Our superior revenue growth with improved profitability led to our highest-ever quarterly net income of ₹5,132 crores, up 11% QoQ and 21.2% YoY.” — Shiv Walia, Chief Financial Officer, HCLTech.

Historical Performance

HCLTech’s rupee-denominated results show profit and operating earnings growing faster than revenue, consistent with the improvement in operating margin.

For the half-year, dollar revenue increased approximately 2.6%, and net income rose approximately 9.6%, but operating cash flow declined approximately 26.7%. The cash-flow statement shows a $675 million outflow from changes in other financial assets and other assets, alongside higher income taxes paid, underscoring why earnings growth and cash generation should be evaluated separately.

Competitor comparison: Tata Consultancy Services

TCS provides an available same-period benchmark: it announced September-quarter FY2027 results on October 8, 2026. The table uses its reported rupee revenue, profit after tax, and EBIT; EBIT replaces operating expenses as permitted by the requested comparison format.

Revenue and PAT comparisons use contemporaneous results coverage. The prior-year TCS PAT of ₹12,095 crore is the reported comparison; it should not be mixed with adjusted figures excluding exceptional items.

HCLTech’s rupee revenue growth of 11.5% was close to TCS’s 11.2%, while its reported net-income growth was faster. TCS nevertheless retained a higher operating margin, at 24.0%, versus HCLTech’s 18.2%. In constant currency, TCS reported 2.8% year-over-year revenue growth, compared with HCLTech’s 2.6%.

Other peers are not populated with unverified September-quarter figures: the pre-results calendar placed Wipro and Tech Mahindra announcements later in the October 12–15 reporting window.

How the Market Reacted?

HCLTech shares climbed as much as 7.16% to ₹1,296.60 on October 13, compared with the previous close of ₹1,223; this is a reported intraday high, not a confirmed closing price. The positive reaction followed the improvement in profitability, stronger AI revenue, higher deal bookings, and an increase in the lower end of annual revenue guidance.

Brokerage views remained divided: some raised earnings estimates, while others highlighted weak software performance and uncertainty over the sustainability of organic growth.