HCL Tech Q1 results: HCL Technologies share price declined over 3% to its day’s low of ₹1,183.00 per share on BSE on Tuesday, July 14, even after the IT major reported a strong performance for the quarter ended June 2026 (Q1FY27).
Its consolidated net profit rose 20.34% year-on-year (YoY) to ₹4,626 crore, compared with ₹3,844 crore in the corresponding quarter last year. On a sequential basis, the IT major’s net profit increased 3% from ₹4,490 crore reported in the March quarter (Q4FY26).
Revenue from operations grew 14% YoY and 1.8% quarter-on-quarter (QoQ) to ₹34,579 crore during the June quarter, up from ₹30,349 crore in Q1FY26 and ₹33,981 crore in Q4FY26. In constant currency (CC) terms, revenue increased 2.6% YoY and 0.5% QoQ.
Despite the strong quarterly performance, HCL Tech retained its FY27 guidance. The company continues to expect constant currency revenue growth of 1-4% YoY for FY27, while the services business is projected to grow 1.5-4.5% in constant currency. The company also expects its EBIT margin to remain in the 17.5-18.5% range during FY27.
The company’s board also declared an interim dividend of ₹12 per equity share. HCL Tech has fixed Friday, July 17, as the record date to determine eligible shareholders, while the dividend will be paid on Monday, July 27, according to its earnings filing.
HCL Tech stock performance
The IT stock has gained 8% in the last 1 month; however, it has shed 16% in 3 months, 28% in 6 months and 26% in the last 1 year. It has hit its 52-week high of ₹1,770 in February 2026 and its 52-week low of ₹1,030 in earlier this month on July 1, 2026.
Other Key Q1 Highlights
Operational performance also improved during the quarter. EBIT margin, including the impact of 62 basis points (bps) of restructuring costs, increased 39 bps QoQ and 56 bps YoY to 16.9%.
A key highlight of the quarter was HCL Tech’s highest-ever Q1 new deal bookings, which stood at $2,407 million. The company also reported robust growth in its Advanced AI business, with revenue rising 10.6% QoQ and 62.1% YoY in constant currency to $171 million.
Commenting on the performance, C Vijayakumar, Chief Executive Officer and Managing Director of HCL Technologies, said:
“We recorded our highest-ever Q1 net-new bookings of $2.4 billion, and our advanced AI business grew 10.6% QoQ and 62.1% YoY in constant currency terms. These demonstrate that enterprises are choosing us to lead their AI-led transformation.”
“Combined with the operational efficiencies visible in margin expansion, this momentum gives us the confidence we’re positioned to keep outpacing the market over the medium term.”
HCL Tech Q1 Review: Should you buy the IT stock?
Elara Securities upgraded HCL Technologies to ‘Accumulate’ from ‘Sell’ and raised its target price to ₹1,310 from ₹1,200, citing multiple growth catalysts. The brokerage said the $1.14 billion mega deal signed in July, which is not factored into the company’s revenue guidance, could provide upside. It also highlighted HCL Tech’s investments in Sarvam AI for frontier models and an initial ₹35 billion investment to create 50 MW data centre capacity, noting that the company aims to build a first-mover advantage in the full-stack AI data centre opportunity while maintaining its stated dividend payout policy and improving pricing over time.
Elara noted that HCL Tech delivered a better-than-expected June quarter on both revenue and margins. It said the sequential decline in revenue was due to planned productivity commitments in some large contracts, which are typically passed on in the first quarter. The brokerage added that HCL Tech is not planning large-scale investments in the data centre business for now, with future investments dependent on returns from the initial investment.
“The $1.14 billion mega deal signed in July is not factored into revenue growth guidance and may provide an upside risk. HCL Tech’s investments in Sarvam AI and data centre capacity position it to create a first-mover advantage in the full-stack AI opportunity, while we expect revenue growth to pick up from Q2 with no risk to FY27 guidance,” Elara Securities said.
Elara now expects USD revenue growth of 3% in FY27 and 4% in FY28, higher than its earlier estimates, and has raised its FY27 and FY28 earnings estimates by 6-8%.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
