New Delhi: Noida-based HCL Technologies Q1 FY26 results have been somewhat disappointing, with net profits falling 10.8% from Rs.3,986 crore to Rs.3,843 crore, according to a release submitted to the bourses on Monday. As India’s third-largest IT Company, HCL Technologies has had to deal with multiple challenges, including tariff uncertainty in the US and AI implementation. It has lowered its operating margin forecast to 17-18% from 18-19% earlier.
“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.” C Vijayakumar, CEO & Managing Director, HCLTech, said.
“Economic volatility, cautious discretionary spending, and increased competition have tempered overall momentum, resulting in only modest revenue growth and subdued performance for the majority of the IT vendors.
Despite these challenges, HCLTech managed to deliver a moderate growth of 0.3 per cent QoQ, supported by major contract wins and a robust deal pipeline. The company’s ongoing investment in workplace innovation and its strong commitment to delivering client outcomes have established it as a valuable partner for its clients,” Biswajit Maity, Sr Principal Analyst at Gartner, said.
📊 HCLTech reports strong #Q1FY26 performance, delivering healthy revenue growth of 3.7% YoY (CC). #HCLTechQ1
🔼 #Digital Services revenue grew 15.2% YoY (CC), while #Engineering and R&D Services grew 11.8% YoY (CC).
🔼 #Industry verticals: Led by Technology and Services at… pic.twitter.com/gAHSCUF06t— HCLTech (@hcltech) July 14, 2025
HCL Technologies’ board has announced an interim dividend of Rs.12 per share, the 90th consecutive quarter of dividend payouts. HCL’s shares have fallen about 3% in early morning trades on Tuesday, July 15.
