HCL Technologies LimitedQ1 FY27 Results & Financial Update
HCL Technologies Limited: Q1 FY27 consolidated results and company financials – revenue ₹34,579.00 Cr, PAT ₹4,624.00 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceReported figures and period changes.Changes compare like-for-like reported periods where available.
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Quarterly Results AnalysisExplore HCL Technologies Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Revenue grew 1.6% sequentially and 6.2% year-on-year in constant currency, supported by strong operational execution and broad-based growth across business segments.
Operating margin (EBIT) stood at 18.6%, expanding 149 basis points quarter-on-quarter, driven by operating leverage, reduced marketing and travel expenses, and software business contributions.
For FY27, HCLTech maintained company revenue growth guidance of 1% to 4% in constant currency, services revenue growth guidance of 1.5% to 4.5%, and EBIT margin guidance of 17.5% to 18.5%, as disclosed with its Q1 FY27 results.
01 · Business model
What does HCL Technologies do?
HCLTech is a global technology-services company spanning IT and business services, engineering and R&D, software, cloud, cybersecurity and AI. Its mix makes both bookings and margins worth watching: revenue reflects delivered work, while bookings provide context for future execution.
02 · Historical context
What shaped the business before this quarter
FY27 guidance was retained at 1.0%–4.0% company revenue growth in constant currency and 17.5%–18.5% EBIT margin.
03 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Q1 FY27 | Year-ago | Previous quarter |
|---|---|---|---|
| Revenue | ₹34,579.00 Cr | ₹30,349.00 Cr | ₹33,981.00 Cr |
| Net income | ₹4,624.00 Cr | ₹3,843.00 Cr | ₹4,488.00 Cr |
| EBIT margin | 16.90% | 16.30% | 16.51% |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Revenue and net income both increased on YoY and QoQ comparisons.
What drove margins
EBIT for the quarter came in at $640 million at 18.6% of revenue, improving 149 bps quarter-on-quarter.
Last 12-month ROIC reached 35.7% for the company (up 350 bps YoY), services ROIC reached 43.5% (up 400 bps YoY), and software ROIC reached 17.8% (up 190 bps YoY).
05 · Demand, customers & order book
Where demand is coming from
Total new booking TCV for Q2 stood at $2.2 billion from 20 total deals won, comprising 12 services deals and 8 HCL Software deals.
Added 4 new clients in the $50 million+ category and 4 new clients in the $20 million+ category on a quarter-on-quarter basis.
GenAI platform AI Force is deployed or initiated across 25 client implementations out of an initial goal of 50 clients, serving as a key differentiator in displacement of incumbents.
06 · Segments, products & geography
Which parts of the business are doing the work
Geography and market mix
Sequential constant currency growth was led by Rest of World at 7.2%, accompanied by growth across Americas and Europe.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Wage hike impact for Q3 is expected between 65 to 80 bps, with an incremental 50 to 60 bps impact in Q4; average India increases are centered around 7%.
Total headcount stood at 219,000 employees; while headcount declined slightly, the wage bill increased due to a shift in the pyramid towards specialized skills and GenAI-led delivery.
08 · Reported developments
What changed operationally
Growth was witnessed across all geographies and verticals (except Financial Services, which felt the planned impact of the State Street BPO JV divestment).
HCL Software revenue reached $342 million, up 1.4% sequentially and 9.4% year-on-year in constant currency, representing the highest-ever year-on-year growth reported to date with ARR at $1.05 billion.
Last 12 months operating cash flow reached $2.52 billion and free cash flow reached $2.39 billion; DSO including unbilled improved by 3 days sequentially to 79 days.
09 · Pressure points & risks
What is not going smoothly
Significant cost reduction programs and some program cancellations persist in the automotive segment, particularly in Europe.
Rest of World (ROW) geography declined by 2.6% on a year-on-year constant currency basis.
10 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Gross cash stood at $3.44 billion and net cash stood at $3.17 billion.
Operating cash flow to net income conversion stood at 126%, and free cash flow to net income conversion stood at 119%.
11 · Management guidance & targets
What management is targeting from here
Board declared an interim dividend of INR 12 per share, bringing the last 12-month payout to INR 54 per share (distributing 86.9% of income).
Company revenue growth guidance maintained at 1% to 4% year-on-year in constant currency.
Services revenue growth guidance maintained at 1.5% to 4.5% year-on-year in constant currency; EBIT margin guidance maintained at 17.5% to 18.5%.
12 · Management call deep dive
What management said on the conference call
Operating takeaways
14 key pointsSequential constant currency growth was led by Rest of World at 7.2%, accompanied by growth across Americas and Europe.
Board declared an interim dividend of INR 12 per share, bringing the last 12-month payout to INR 54 per share (distributing 86.9% of income).
Wage hike impact for Q3 is expected between 65 to 80 bps, with an incremental 50 to 60 bps impact in Q4; average India increases are centered around 7%.
Management remains cognizant of geopolitical factors and broader macroeconomic volatility despite positive near-term demand indicators.
Total new booking TCV for Q2 stood at $2.2 billion from 20 total deals won, comprising 12 services deals and 8 HCL Software deals.
Added 4 new clients in the $50 million+ category and 4 new clients in the $20 million+ category on a quarter-on-quarter basis.
GenAI platform AI Force is deployed or initiated across 25 client implementations out of an initial goal of 50 clients, serving as a key differentiator in displacement of incumbents.
Total headcount stood at 219,000 employees; while headcount declined slightly, the wage bill increased due to a shift in the pyramid towards specialized skills and GenAI-led delivery.
EBIT for the quarter came in at $640 million at 18.6% of revenue, improving 149 bps quarter-on-quarter.
Last 12-month ROIC reached 35.7% for the company (up 350 bps YoY), services ROIC reached 43.5% (up 400 bps YoY), and software ROIC reached 17.8% (up 190 bps YoY).
Gross cash stood at $3.44 billion and net cash stood at $3.17 billion.
Operating cash flow to net income conversion stood at 126%, and free cash flow to net income conversion stood at 119%.
Company revenue growth guidance maintained at 1% to 4% year-on-year in constant currency.
Services revenue growth guidance maintained at 1.5% to 4.5% year-on-year in constant currency; EBIT margin guidance maintained at 17.5% to 18.5%.
Important analyst Q&A
3 key pointsManagement noted that the implied second-half ask rate for Q3 and Q4 is between 0% and 2%, reflecting measured caution despite an improving demand environment due to potential macro volatility.
Management attributes software momentum to broad-based execution and product innovation (such as HCL Unica and Actian data/AI capabilities), maintaining a medium-term aspiration of mid-single-digit growth.
Automotive clients, particularly in Europe, are experiencing budget pressures and program cancellations, though robust SAP implementation demand in manufacturing offsets some of the impact.
13 · Key Q&A
The quarter, answered directly
What does HCL Technologies do?
HCLTech is a global technology-services company spanning IT and business services, engineering and R&D, software, cloud, cybersecurity and AI. Its mix makes both bookings and margins worth watching: revenue reflects delivered work, while bookings provide context for future execution.
What is the clearest takeaway from Q1 FY27?
Revenue grew 1.6% sequentially and 6.2% year-on-year in constant currency, supported by strong operational execution and broad-based growth across business segments.
What drove revenue or demand?
Revenue and net income both increased on YoY and QoQ comparisons.
What mattered most for margins or profitability?
EBIT for the quarter came in at $640 million at 18.6% of revenue, improving 149 bps quarter-on-quarter.
What changed operationally beyond the headline numbers?
Wage hike impact for Q3 is expected between 65 to 80 bps, with an incremental 50 to 60 bps impact in Q4; average India increases are centered around 7%.
What is management guiding or targeting from here?
Board declared an interim dividend of INR 12 per share, bringing the last 12-month payout to INR 54 per share (distributing 86.9% of income).
14 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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15 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Whether the disclosed restructuring impact fades in subsequent quarters.
- 02
Conversion of record Q1 bookings into revenue.
- 03
Progress toward the FY27 EBIT-margin guidance range.
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