Q2 Results Highlights: HCLTech Q2 Profit Rises 11%, Declares Second Interim Dividend

This live blog has now officially ended, thank you for tuning in, for more reports, updates and analyses, do visit NDTV Profit.

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%.

Read more: HCLTech Q2 Decoded: Record Profit On Rupee Tailwind, Hiring Rebound Despite AI Boom, And Software Slip

HCLTech's dollar revenue for the second quarter grew 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.

HCL Tech's new bookings for the second quarter 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.

HCLTech's Advanced AI revenue for the second quarter 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.

RBI Bank announced its July-September quarter results for fiscal 2026-27 on Monday, Oct. 12 reporting a surge of 170% in its standalone net profit to Rs 482 crore, compared to Rs 179 crore in the corresponding period last year. The private lender's bottomline nearly triple by 2.7 times in the quarter-under-review on improving asset quality and a rise in operating profit.

RBL BANK  Q2 Results

• Net Profit At Rs 482 crore Vs Rs 179 crore YoY 
• Gross NPA At 1.02% Vs 1.30% QoQ 
• Net NPA At 0.29% Vs 0.37% QoQ 
• NII Up 37.5% At Rs 2,131 crore Vs Rs 1,550 crore YoY 
• Provisions At Rs 767 crore Vs Rs 599 crore QoQ 
• Provisions At Rs 767 crore Vs Rs 500 crore YoY

HCLTech's Advanced AI revenue for the second quarter 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.

HCLTech's  attrition rate fell to 12.8%, slightly below the 12.7% recorded in the April-June quarter. The company's revenue guidance was seen at 2.5% to 4%.

HCL Technologies Ltd. declared its second interim dividend at Rs 12 per share. The record date for determining the eligibility of investors will be Oct. 16. The dividend will pe paid out to the eligibile investors by Oct. 26, 2026.

HCLTech Ltd. for the July-September period posted a 11% rise on a sequential basis, beating analysts estimates.

The information technology company's bottom line stood at Rs 5,132 crore during the second quarter of the financial year ending March 2026, compared to Rs 4,624 crore clocked in the preceding quarter.

HCLTech Q2 Results Key Highlights (Consolidated QoQ)

• Revenue rises 11% to Rs 35,620 crore versus Rs 34,579 crore (Estimate: Rs 35,547 crore)
• Net profit rises 11% to Rs 5,132 crore versus Rs 4,624 crore (Estimate: Rs 4,875 crore)
• EBIT rises 10.9% to Rs 6,465 crore versus Rs 5,831 crore (Estimate: Rs 6,243 crore)
• EBIT Margin expanded to 18.1% versus 16.7% (Estimate: 17.56%).

Read more: HCLTech Q2 Results: Profit Rises 11%, Announces Second Interim Dividend; Check Record Date

According to Bloomberg estimates, HCLTech's revenue is expected to rise 2.8% quarter-on-quarter to Rs 35,547 crore in Q2 FY27, compared with Rs 34,579 crore in the June quarter. Net profit is projected to increase 5.4% to Rs 4,875 crore, while earnings before interest and taxes (EBIT) are expected to grow 7.1% to Rs 6,243 crore.

HCL Technologies announced its 'global premier partnership' with leading AI firm Anthropic to ramp up the adoption of agentic AI for enterprises. 

"HCLTech’s services teams will build industry solutions and offerings powered by Claude, Cowork and Claude Code, while HCLSoftware, as an Anthropic ISV partner, will embed these into it select enterprise products," the firm's press release said.

This development comes on the day the IT firm will announce its results for the quarter ended Sept. 30, 2026.

• Natco Pharma, Dr Reddy's Laboratories, Cipla, Jubilant Pharmova, Zydus Lifesciences, Lupin and Sanofi India are expected to report weaker year-on-year earnings trends.
• The brokerage cited US pricing pressure, generic competition, and margin compression as the key factors weighing on profitability.
• Among these, Natco Pharma's EBITDA is expected to decline sharply, reflecting the impact of weaker US business dynamics.

• Nirmal Bang expects Gland Pharma, Mankind Pharma, Ajanta Pharma, Alembic Pharmaceuticals and Pfizer India to deliver some of the strongest Q2 performances.
• These companies are expected to post EBITDA growth that matches or exceeds revenue growth, reflecting stronger operating leverage.

• Nirmal Bang said contributions from Semaglutide-related products remain negligible to small across major Indian pharma companies.
• The brokerage expects limited earnings impact currently for Torrent Pharma, Mankind Pharma, Eris Lifesciences, Sun Pharma, Natco Pharma and Zydus Lifesciences.
• Investors will continue to track the pace of commercialisation and market expansion of GLP-1 therapies.

• The brokerage said the US market will remain the biggest variable for sector earnings this quarter.
• Sequential recovery is expected at Cipla and Dr Reddy's Laboratories, aided by fuller-quarter contributions from select launches with limited competition.
• However, erosion in Lenalidomide revenues and normalisation in Lupin's Tolvaptan and Mirabegron franchises are expected to hurt year-on-year earnings growth.

• Nirmal Bang said acquisitions will support reported revenue growth for Torrent Pharmaceuticals, Zydus Lifesciences and Alkem Laboratories.
• However, acquisition-related amortisation and higher finance costs are expected to weigh on profitability.
• Excluding acquisition benefits, Gland Pharma, Ajanta Pharma, Jubilant Pharmova, Mankind Pharma and Eris Lifesciences are expected to post double-digit growth.

• Nirmal Bang expects its pharma coverage universe to report 11% YoY revenue growth in Q2 FY27.
• However, EBITDA is projected to decline 1.6% YoY and PAT is expected to fall 16.9% YoY as margins come under pressure.
• EBITDA margins are expected to contract by around 293 basis points YoY to 23.3%.

• Swaraj Engines shares were in demand on Monday, following its Q2FY27 results.
• The stock climbed as much as 14.91% to hit an intraday high of Rs 3,950 per share.

 

• Elara continues to maintain a constructive view on the textile sector despite near-term market share challenges.
• Indo Count Industries remains the brokerage's preferred pick, supported by strong earnings visibility, export opportunities and growth in value-added categories.

• Elara remains positive on the long-term outlook for Indian textiles, citing India's integrated value chain, raw material availability and cost competitiveness.
• The brokerage believes the India-UK Free Trade Agreement, which became effective on July 15, 2026, along with a potential India-EU trade agreement, could expand export opportunities.
• Key monitorables include recovery in US demand, order flows from UK customers and developments related to global trade policies.

• Elara highlighted that India lost market share in the US across cotton sheets, towels, apparel and cotton apparel during July-August.
• Pakistan, China and Bangladesh were the primary beneficiaries of the shift in market share.
• The brokerage said uncertainty around potential US tariffs linked to imports from countries buying Russian crude remains a key risk for the sector.

• Elara expects sector margins to improve sharply on the back of stronger yarn spreads and a favourable base.
• Vardhman Textiles is expected to report the steepest margin expansion among peers, with EBITDA margins seen rising by around 852 basis points YoY to 22%.
• Better yarn economics and lower-cost cotton inventory are expected to support profitability.

• Swaraj Engines reported a 21.9% year-on-year increase in net profit to Rs 60.6 crore for Q2 FY27, compared with Rs 49.7 crore a year ago.

• Revenue rose 26% YoY to Rs 635 crore from Rs 504 crore, while EBITDA increased 27.2% to Rs 86.5 crore from Rs 68 crore.

• EBITDA margin improved marginally to 13.6% from 13.5% in the corresponding quarter last year.

• Vardhman Textiles is expected to lead the sector with 23.5% YoY revenue growth, supported by higher yarn realisations.
• Indo Count Industries is projected to deliver 22.2% revenue growth, aided by pricing gains and a 65.6% YoY increase in its pillow business.
• Arvind Ltd. is expected to post 14.8% growth, driven by its advanced materials business.

• Elara said the removal of import duty on cotton has helped restore parity between domestic and global cotton prices.
• While average cotton prices rose 20.3% YoY and 6.7% QoQ to Rs 189/kg, domestic cotton yarn spreads expanded 22.2% YoY to Rs 117/kg.
• The improvement in yarn spreads is expected to be a key driver of earnings growth across spinning companies.

• Elara Capital expects its textiles coverage universe to report 17.7% YoY revenue growth in Q2 FY27, driven by higher yarn realisations and strong export demand.
• The brokerage expects EBITDA growth of 61.2% YoY and adjusted profit growth of 91.3% YoY.
• EBITDA margins are expected to expand 427 basis points YoY to 15.8%.

• Given the prospects of moderating earnings growth and rising rates, Nuvama is advocating a contrarian shift towards large-caps and defensive sectors.
   
• The brokerage's key overweight sectors are:
   
  • IT
  • Private Banks
  • Pharma
  • Consumer
  • Cement
• Key underweight sectors are:
   
  • Industrials
  • Autos
  • Metals
  • PSU Banks.

• Despite a strong start to FY27, Nuvama believes sustaining current earnings growth in the second half may be difficult.
• The brokerage highlighted risks from a higher base effect, global interest rate increases, El Niño-related disruptions, and the delayed impact of geopolitical tensions on demand.
• According to Nuvama, earnings momentum could moderate as these factors begin to weigh on economic activity.

• Nuvama expects Nifty 50 earnings growth of 22% YoY in Q2 FY27.
• This would take H1 FY27 profit growth to around 20%, above the brokerage's full-year expectation of 14-15%.
• The stronger-than-expected first-half performance could help limit earnings downgrades in the near term.

• The brokerage expects margin pressures to be visible in auto, FMCG, cement, chemicals and industrial companies due to higher input costs.
• While demand trends remain healthy, rising raw material prices are expected to weigh on profitability in several sectors.
• Margin performance and pricing actions will remain key discussion points during earnings calls.

• Nuvama expects profit growth to remain skewed across sectors despite overall strong earnings.
• Metals, private banks, NBFCs, durables and export-oriented auto companies are expected to report some of the strongest earnings growth.
• In contrast, cement, chemicals and pharma are likely to witness profit contraction during the quarter.
• IT and industrial companies are expected to deliver steady profit growth of around 10-12%.

• Nuvama expects more than 20% revenue growth in sectors including metals, domestic autos, retail, NBFCs, internet businesses and EMS companies.
• Revenue growth of 10-20% is expected across IT, pharma, FMCG, industrials, private banks, energy and consumer durables.
• Chemicals and PSU banks are expected to post relatively weaker top-line growth of below 10% YoY.

• Nuvama Institutional Equities expects companies under its coverage universe (excluding OMCs) to report 18% YoY revenue growth and 23% YoY profit growth in Q2 FY27, broadly in line with Q1 FY27.
• The brokerage said demand recovery that began in H2 FY26 has continued through the first half of FY27.
• Margins and management commentary on H2 FY27 demand trends will be the key monitorables this earnings season.

• SH Kelkar & Co. reported Q2 consolidated revenue growth of 15% YoY to Rs 633 crore.
• The company expects gross margins to remain broadly stable despite volatility in the operating environment.
• Net debt stood at Rs 911 crore as of Sept. 30, 2026.
• Management said it continues to monitor market conditions while focusing on business growth and balance-sheet management.

• Kalpataru reported Q2 pre-sales of Rs 1,258 crore, down 5% YoY.
• Collections remained flat at Rs 1,189 crore during the quarter.

• Ajmera Realty & Infra India reported Q2 sales value of Rs 224 crore, down 69% YoY.
• Collections declined 14% YoY to Rs 190 crore.
• Carpet area sold fell 68% YoY to 72,883 sq. ft.

• Mahindra & Mahindra reported September production of 1.22 lakh units, up 19.2% YoY.
• Sales rose 16.3% YoY to 1.14 lakh units.

• Canara Robeco Asset Management Company reported Q2 net profit of Rs 59.2 crore, down 21.7% QoQ from Rs 75.6 crore.
• Total income declined 12.1% QoQ to Rs 128 crore from Rs 146 crore.
• The company declared an interim dividend of Rs 2 per share.

• Can Fin Homes reported Q2 net profit of Rs 275 crore, up 9.2% YoY from Rs 251 crore.
• Total income increased 7.8% YoY to Rs 1,131 crore from Rs 1,050 crore.

• Anand Rathi Wealth reported Q2 net profit of Rs 88.3 crore, down 45.9% QoQ from Rs 163 crore.
• Total income declined 18.3% QoQ to Rs 345 crore from Rs 422 crore.
• The company declared an interim dividend of Rs 4 per share.

• Waterways Leisure Hotels reported a Q2 net profit of Rs 58.5 crore against a loss of Rs 8.9 crore a year ago.
• Revenue rose 30.4% YoY to Rs 133 crore from Rs 102 crore.
• EBITDA stood at Rs 9.4 crore compared with a loss of Rs 5.9 crore last year.
• EBITDA margin came in at 7.1%.

• Canara HSBC Life Insurance reported Q2 net profit of Rs 43.1 crore, up 5.6% YoY from Rs 40.8 crore.
• Net premium income increased 13% YoY to Rs 2,553 crore from Rs 2,260 crore.
• The company also approved raising up to Rs 288 crore through NCDs.

• Poonawalla Fincorp reported Q2 net profit of Rs 375 crore, compared with Rs 74.2 crore in the year-ago period.
• Total income rose 70.1% YoY to Rs 2,625 crore from Rs 1,543 crore.

• SH Kelkar & Co. reported Q2 revenue growth of 15% year-on-year to Rs 632.7 crore.

• The company's net debt stood at Rs 911 crore as of Sept. 30, 2026.

• SH Kelkar said higher working capital investments led to an increase in net debt during the period.

• The company continues to invest in capacity expansion and capability enhancement initiatives.

• Management expects gross margins to remain broadly stable year-on-year, despite volatility in global supply chains and commodity markets.

• SH Kelkar said inflationary pressures arising from commodity and supply chain disruptions continue to impact margins.

• The company reiterated its focus on deleveraging over the medium to long term.

• HCLTech's annualised Advanced AI revenue stood at $171 million in Q1 FY27, up 10.6% QoQ, accounting for 4.7% of quarterly revenue.
   
• The AI revenue run-rate has increased steadily from $100 million in Q2 FY26 to $171 million in Q1 FY27.
   
• Investors will monitor whether HCLTech can sustain AI-led growth momentum and provide an update on AI-related demand pipelines and monetisation trends.
   
• Management's guidance for the remainder of FY27 is also expected to be a key market trigger, with Nuvama expecting potential guidance in the 2.5%-4.0% range.

• Analysts expect constant-currency revenue growth of 2.5%-3% QoQ for HCLTech, including around 0.8% inorganic contribution.
   
• The HPE telecom business acquisition, Jaspersoft acquisition and Guardian deal are expected to support growth during the quarter.
   
• Investors will closely track management commentary on AI revenues, wage hikes, the demand environment, and trends in the ER&D business.
   
• Street estimates place Q2 deal wins at around $3-3.5 billion, compared with $2.4 billion in Q1 FY27.

• HCLTech is expected to report Q2 FY27 revenue of Rs 35,547 crore, up 2.8% QoQ from Rs 34,579 crore, according to Bloomberg estimates.
   
• EBIT is estimated to increase 7.1% QoQ to Rs 5,831 crore from Rs 5,243 crore.
   
• EBIT margin is expected at 17.56%, up 70 basis points from 16.86% in Q1 FY27.
   
• Net profit is expected to rise 5.4% QoQ to Rs 4,875 crore from Rs 4,624 crore.