- HCL Technologies posted a record Q2 net profit of Rs 5,132 crore, up 11% sequentially
- Revenue grew 11% to Rs 35,620 crore with EBIT margin expanding 131 basis points to 18.2%
- AI revenue hit $219 million, up 28.4% sequentially and 78% year-on-year in constant currency
HCL Technologies Ltd. reported its highest-ever quarterly net profit for the September quarter, driven by improved margins, a weaker rupee and rapid growth in its artificial intelligence business.
Consolidated net profit rose 11% sequentially to Rs 5,132 crore in the second quarter of fiscal 2027, according to an exchange filing on Monday. Revenue also grew 11% to Rs 35,620 crore, while EBIT margin expanded 131 basis points sequentially to 18.2%.
The company kept its FY27 guidance unchanged: revenue growth of 2.5–4% in constant currency and an EBIT margin of 17.5–18.5%. The board declared a dividend of Rs 12 per share.
Beyond the headline numbers, the results show a shift in how HCLTech is making money. Here are the key takeaways.
1. AI Moves From Pilot To Profit Line
Advanced AI revenue rose to $219 million, up 28.4% sequentially and 78% year-on-year in constant currency. That is nearly 6% of total revenue, and an annualised run-rate of close to $900 million.
The deals this quarter go beyond consulting. HCLTech is building an “AI Factory” for a US-based AI-native company, scaling infrastructure for a US neocloud provider, and deploying ChatGPT Enterprise for a US healthcare provider. It also secured Advanced Partner status with OpenAI.
2. AI Shows Up In The Cost Lines Too
Cost of hardware and software sold rose to 2.7% of revenue from 1.9% a year ago, reflecting HCLTech's growing role in building AI infrastructure. Research and development spending rose to 1.9% of revenue from 1.5%.
3. Deal Wins Hit A Record
New bookings stood at $3.26 billion, up 27% year-on-year. That took first-half bookings to a record high and gives the company visibility into the coming quarters.
4. Rupee Does The Heavy Lifting
Dollar revenue grew only 2.2% year-on-year to $3,724 million. The rupee averaged 95.72 against the dollar, compared with 87.63 a year ago, which accounted for much of the double-digit rupee growth.
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5. Margins Stronger Than They Look
The 18.2% EBIT margin includes an 84-basis-point hit from restructuring costs, which puts the underlying margin at about 19%. The services business expanded margin 145 bps year-on-year to 18%. Engineering and R&D services went the other way, with margin falling 231 bps to 15.2%.
6. Freshers Are Back
HCLTech added 6,450 employees, reversing a net reduction of 3,292 in the previous quarter. Fresher additions rose nearly six-fold to 6,136. Even as AI drives productivity gains, the company is hiring entry-level talent at scale again.
7. Software: Revenue Down, Recurring Revenue Up
HCLSoftware revenue fell 11.2% year-on-year in constant currency to $294 million. Annual recurring revenue, however, grew 7.8% to $1,134 million, helped in part by the newly acquired Jaspersoft business.
8. Retail, Banking And India Lead Growth
Retail and consumer goods grew the fastest among verticals at 14%, followed by financial services at 7.1%. Life sciences and telecom each declined 2.1%. By geography, India grew 21.8%, while Europe slipped 0.3%.
9. Bigger Clients, Lower Concentration
The number of clients worth $50 million or more rose to 62 from 54 a year ago. Meanwhile, the share of revenue from the top five clients fell to 11.4% from 12.4%.
10. Cash Put To Work
Gross cash fell to Rs 25,457 crore from Rs 33,447 crore in March. The company spent Rs 3,742 crore on acquisitions during the quarter. Return on invested capital still improved to 41.2%, up 261 bps year-on-year.
ALSO READ: HCLTech Q2 Results: Profit Rises 11%, Announces Second Interim Dividend; Check Record Date
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