HCL Tech Q2 net profit flat at Rs 4,235 crore

Bengaluru: IT services firm HCLTech on Monday posted flat net profit at Rs 4,235 crore for the second quarter ended September 2025. This was in line with Street's expectations of about Rs 4,230 crore.

Its revenue from operations in Q2 stood at Rs 31,942 crore, a 10.7 per cent growth compared to Rs 28,862 crore reported in the year-ago period. For the first time, the company reported that its advanced AI quarterly revenue crossed $100 million, and it has a healthy spread across services and software.

HCLTech has retained its FY26 revenue growth guidance between 3 per cent and 5 per cent y-o-y in constant currency. Its services revenue growth is expected to be between 4 per cent and 5 per cent y-o-y in CC and its EBIT margin to be between 17 and 18 per cent.

The IT services firm's EBIT was at Rs 5,550 crore (17.4 per cent of revenue), up 3.5 per cent y-o-y, and its Q2 FY26 EBIT Margin includes 55 bps impact of restructuring cost.

The company is in the midst of restructuring its operations, and it's a combination of both people and non-people put together. Explaining its restructuring programme, Ram Sundararajan, chief people officer, HCLTech, said, "The people part is the location skill mismatch as well as some of the businesses that we have acquired. We had to look at it from an efficiency measures point of view, and those are the actions that we have taken during the course of the quarter.”

C Vijayakumar, CEO & Managing Director, HCLTech, said, “A standout quarter on every front — marked by strong execution, growing demand for our AI-powered solutions, and Advanced AI revenue exceeding $100 million this quarter. For the first time, our new bookings surpassed $2.5 billion, without reliance on any mega-deal."

He added that the company has been growing strongly in BFSI, technology and telecommunications and media verticals. During the post-earnings press conference, the CEO said, “While the broader manufacturing segment is doing fine, there is continued impact due to the auto sector slowdown.”

On the recent H-1B visa fee revision and its potential impact, the CEO said that over the years, they have made a conscious effort to reduce their reliance on visas by strategically strengthening their local hiring.

Talking about data centres, the CEO said there is a huge opportunity in implementation and operational services for some of the data centres, which is now called the AI factory. “We are already working with the top 10 tech companies in the world as a part of their build and operate strategy," he added.

The company has added 3,489 people to its employee base in the quarter. Sundararajan said that they have added 5,196 freshers during the quarter, and that they will roll out increments effective October. "This time we have also decided to move the quarterly variable pay and convert that into fixed pay and merge it with fixed salary for all our employees," he said during the post-earnings press conference.

Commenting on the company's earnings, Shubham Rathore, Principal Analyst at Gartner, said the company’s record $2.57 billion in new deal bookings signals strong demand for its digital and AI-driven solutions, and its ability to win large, multi-year contracts.

"Margin improvement and reduced attrition to 12.6 per cent points to disciplined operational management and effective employee retention. Management remains optimistic, with guidance indicating sustained growth and stable profitability, fueled by investments in advanced tech and strategic partnerships," he added.

The board has declared an interim dividend of Rs 12 per share.