HCL Tech Q1 Result: From profit, deal TCV to guidance— 5 key highlights of IT firm's June quarter earnings

HCL Tech" data-vars-link-type="Auto" data-vars-page-type="story">Tech Q1 Result: HCL Technologies, India's third-largest IT company in terms of market capitalisation, reported its June quarter earnings (Q1FY26) on Monday, July 14. The company's consolidated profit fell almost 10 per cent year-on-year (YoY). Revenue from operations, however, rose 8 per cent YoY.

The IT major slightly tweaked its FY26 guidance, while highlighting the growing clout of AI in business growth.

"AI has become integral to the business growth of global enterprises. HCL Tech’s capabilities and strategic partnerships ensure our AI-led solutions are practical, comprehensive and significant value creators to our clients," said Roshni Nadar Malhotra, the chairperson of HCL Tech.

"We also remain intensely focused on the ethical deployment of AI and maximising its positive social impact," said the chairperson.

Let's take a look at five key takeaways from HCL Tech's Q1 results:

According to HCL Tech's exchange filing, its Q1FY26 consolidated profit after tax (PAT) fell 9.7 per cent YoY to ₹3,843 crore compared to ₹4,257 crore in Q1FY25.

Revenue from operations for the quarter rose 8.2 per cent YoY to ₹30,349 crore from ₹28,057 crore in Q1FY25. In constant currency (CC) terms, revenue rose 3.7 per cent YoY.

Revenue in the US dollar stood at $3,545 million, up 5.4 per cent YoY. The company highlighted that its consolidated revenue on an LTM (last twelve months) basis crosses $14 billion.

On the profitability front, the IT player's EBIT at ₹4,942 crore, which was 16.3 per cent of revenue, increased 3.1 per cent YoY. However, the EBIT margin for the quarter under review slipped to 16.3 per cent from 17.1 per cent YoY.

“HCL Tech's Q1FY26 INR revenue grew an impressive 8.2 per cent YoY. EBIT for the quarter came in at ₹4,942 crore, and net income (NI) at ₹3,843 crore and at 16.3 per cent and 12.7 per cent of revenue, respectively," Shiv Walia, Chief Financial Officer of HCL Tech, said.

"Our cash generation remains robust with OCF/NI at 129 per cent and FCF/NI at 121 per cent, reflecting the underlying strength of our business model. Our commitment to capital efficiency has resulted in LTM ROIC improving for the company by 353 bps YoY to 38.1 per cent and for the services business by 236 bps YoY to 45.2 per cent,” Walia said.

(This is a developing story. Please check back for fresh updates.)

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Download the Mint app and read premium stories