HCL Tech Posts Strong Q1 FY27 Performance with Net Profit Rising to ₹4,626 Crore; Declares ₹24 Interim Dividend

Technology heavyweight HCL Technologies Limited has announced its consolidated unaudited financial results for the first quarter of the fiscal year 2026-27, ended June 30, 2026. The IT major delivered strong growth across both its top-line revenue streams and bottom-line profitability, driven by expanding digital enterprise deals and robust execution across its core service segments.

The corporate board also rewarded shareholders by declaring an interim dividend of ₹24 per equity share for the quarter, doubling the payout sequentially from the ₹12 distributed in the preceding quarter.

Income Trajectory and Segment Breakdown

HCL Tech's consolidated revenue from operations reached ₹34,579 crore for Q1 FY27, posting a steady 1.76% sequential expansion over the ₹33,981 crore logged in the trailing winter quarter. More notably, the quarterly revenue highlights a strong 13.94% year-on-year increase against the ₹30,349 crore generated in the corresponding quarter of the previous fiscal year. Supplemented by an other income inflow of ₹361 crore, the company's total income for the three-month window culminated at ₹34,940 crore.

An evaluation of external customer revenue segments showcases broad-based business delivery:

IT and Business Services: Remaining the primary growth engine, this segment generated ₹26,049 crore during the quarter, reflecting a strong 16.01% expansion year-on-year from ₹22,454 crore.

Engineering and R&D Services: This specialized division contributed ₹5,690 crore to external operational revenues, up from the ₹5,174 crore posted in Q1 FY26.

HCL Software: The software products framework secured a solid external revenue run-rate of ₹2,840 crore, up from ₹2,721 crore in the year-ago quarter.

Operational Expenses and Segment Profitability

Total operating expenses for the quarter stood at ₹28,832 crore, showing disciplined management relative to revenue scaling. Employee benefits expenses normalized at ₹19,692 crore, compared to ₹19,377 crore in the trailing quarter and ₹17,598 crore in Q1 FY25.

Outsourcing costs registered at ₹5,108 crore, while purchase of stock-in-trade stood at ₹822 crore. Administrative overheads and other operational outlays came in at ₹2,059 crore. Finance costs and depreciation charges were recorded at ₹84 crore and ₹1,039 crore, respectively.

In terms of profitability before tax and unallocable charges, the segments performed as follows:

IT and Business Services delivered a segment result of ₹4,420 crore.

Engineering and R&D Services achieved ₹888 crore.

HCL Software contributed ₹523 crore to the operating profit matrix.

Expanded Net Margins and Higher EPS

Strong sequential demand pushed the consolidated profit before tax to ₹6,108 crore, tracking a 7.12% sequential jump over the ₹5,702 crore recorded in the March quarter, and a 17.71% increase over the ₹5,189 crore earned in the same period last year.

After accounting for a total tax outgo of ₹1,482 crore (comprising a current tax provision of ₹1,535 crore offset by a deferred tax credit of ₹53 crore), HCL Tech closed the quarter with a net profit of ₹4,626 crore. Out of the total net profit, ₹4,624 crore was attributable directly to the owners of the company, while non-controlling interests accounted for ₹2 crore. The bottom-line performance represents a 20.34% expansion year-on-year against the net profit of ₹3,844 crore delivered in the quarter ended June 30, 2025.

Total comprehensive income for the quarter settled at ₹4,691 crore after adjusting for a net post-tax addition of ₹65 crore under other comprehensive income. On a paid-up equity share capital base of ₹543 crore (consisting of shares with a face value of ₹2 each), basic earnings per share (EPS) advanced to ₹17.09 for the quarter, up from ₹16.59 in the preceding quarter and ₹14.18 in the corresponding year-ago period. Diluted EPS stood at ₹17.06.

Shares of HCL Technologies Limited was last trading in BSE at Rs. 1221.00 as compared to the previous close of Rs. 1162.65. The total number of shares traded during the day was 590583 in over 19242 trades.

The stock hit an intraday high of Rs. 1237.15 and intraday low of 1162.40. The net turnover during the day was Rs. 711816854.00.

Source : Equity Bulls

Keywords

HCLTechnologies INE860A01027 Q1FY27 Q1FY2027 ResultUpdate