HCL Technologies reported on Monday that its consolidated net profit dipped 10% year-on-year in the quarter ending June for the financial year 2025–26 (Q1 FY26) at ₹3,843 crore, down from last year's corresponding quarter of ₹4,257 crore.
Despite the decline in profits, the company saw an 8% increase in revenue from operations at ₹30,349 crore against ₹28,057 crore for Q1 FY25, according to its regulatory filing. On a quarter-on-quarter basis, revenue increased marginally by 0.3% from ₹30,246 crore in the previous quarter.
The IT services company also announced an interim dividend of ₹12 per share for FY26. The dividend record date has been fixed as July 18 and the payout date as July 28.
On the growth front, HCL Tech has guided revenue and services revenue growth of 3% to 5% in constant currency terms for FY26. The company has reiterated its EBIT margin guidance in the range of 17% to 18%.
Looking back at the performance, Chairperson Roshni Nadar Malhotra stated that the company continues to focus on responsible use of artificial intelligence (AI) as she characterized it as central to business growth around the world.
"Our strategic partnerships and capabilities ensure that our AI-led solutions deliver real value to clients," she added.
Managing Director and CEO C. Vijayakumar pointed out that the revenue of the company recorded a 3.7% year-over-year growth in constant currency, with the services segment registering an increase of 4.5% alone.
He credited the operating margin of 16.3% to lower employee utilisation and higher spends on generative AI as well as go-to-market efforts.
"Our AI offerings are resonating quite well with customers," he stated, further noting that HCL Tech's recent partnership with OpenAI has helped strengthen its standing in the AI domain.
Vijayakumar also emphasized a rising deal pipeline in what he called a "stable demand environment," and noted that HCL Technologies is the sole IT services company to be recognized as a 'Customer's Choice' across all six IT services categories in Gartner's Voice of the Customer report
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