HCL Tech slides as Q1 PAT falls 11% QoQ to Rs 3,843 cr
In dollar terms, the company's revenue stood at $3,545 million, up 1.34% QoQ. However, in constant currency (CC) terms, revenue declined 0.8% sequentially.
Earnings before interest and tax (EBIT) for Q1 FY26 fell 9.18% to Rs 4,942 crore, compared to Rs 5,442 crore in Q4 FY25.
On a year-on-year (YoY) basis, the company?s net profit dropped 9.72%, while revenue grew 8.16%.
The company reported a Return on Invested Capital (ROIC) of 38.1%, up 353 basis points (bps) YoY. Its services segment recorded ROIC of 45.2%, up 236 bps YoY.
On a last-twelve-months (LTM) basis, Operational Cash Flow (OCF) stood at $2,571 million, while Free Cash Flow (FCF) came in at $2,421 million.
HCLTech?s total contract value (TCV) of new deal wins for Q1 FY26 stood at $1,812 million.
The company?s Board of Directors declared an interim dividend of Rs 12 per equity share for FY 2025?26. The record date for the dividend is 18 July 2025, and the payment date is set for 28 July 2025.
HCLTech added 269 net employees during the quarter, bringing its total headcount to 223,151 as of 30 June 2025. This includes the addition of 1,984 freshers. The company?s LTM attrition rate remained stable at 12.8%, unchanged from the same period last year.
For FY26, HCLTech has provided guidance indicating that overall company revenue is expected to grow between 3.0% and 5.0% year-on-year in constant currency (CC) terms. The Services segment is also projected to register a similar 3.0% to 5.0% YoY growth in CC. Additionally, the company expects its EBIT margin to range between 17.0% and 18.0% for the fiscal year.
C Vijayakumar, CEO & managing director of HCLTech, said, ?We had healthy revenue growth of 3.7% YoY supported by good performance in our Services business with 4.5% YoY growth in constant currency. Our operating margin came at 16.3%, impacted by lower utilization and additional Gen AI and GTM investments. Our AI propositions are resonating well with our clients and have been augmented further by our partnership with OpenAI. Our pipeline continues to grow as the demand environment was stable during the quarter. As the only service provider positioned as ?Customer's Choice? in all 6 Gartner Voice of Customer Quadrant evaluations related to IT services, we are well positioned to grow in the AI era.?
Roshni Nadar Malhotra, Chairperson of HCLTech, said, AI has become integral to the business growth of global enterprises. HCLTech?s capabilities and strategic partnerships ensure our AI-led solutions are practical, comprehensive, and significant value creators to our clients. We also remain intensely focused on the ethical deployment of AI and maximizing its positive social impact.?
HCLTech is a global technology company with more than 223,000 employees across 60 countries. It delivers industry-leading capabilities in digital, engineering, cloud, and AI, powered by a broad portfolio of technology services and products. HCLTech works with clients across all major industries, providing tailored solutions for financial services, manufacturing, life sciences and healthcare, high tech, semiconductors, telecom and media, retail and consumer packaged goods (CPG), and public services. For the 12-month period ending June 2025, the company reported consolidated revenues of $14.0 billion.
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