HCL Technologies Sees Mixed Q1 FY26 Resultswith Strong Focus on AI Expansion

HCL Technologies has released its Q1 results for the financial year 2025–26, reporting a consolidated net profit of ₹3,843 crore, reflecting an 11% decline from the previous quarter’s ₹3,986 crore. The dip in profit comes despite modest growth in overall revenue and continued investments in artificial intelligence (AI) and go-to-market (GTM) strategies.

The company’s revenue from operations stood at ₹30,349 crore, slightly up from ₹30,245 crore in Q4 FY25. In constant currency terms, the revenue slipped by 0.8% quarter-on-quarter but registered a 3.7% growth compared to the same period last year. HCL’s dollar revenue touched $3,545 million, a 1.3% increase from the previous quarter and a 5.4% year-on-year rise.

HCL Technologies Balances Profit Pressures with Growth Strategy

For Q1 FY26, HCL Technologies reported EBIT of ₹4,942 crore, a 9.2% fall from ₹5,442 crore in Q4 FY25. EBIT margin also narrowed to 16.3%, down from 18% in the previous quarter. The company pointed to lower resource utilisation and higher investments in AI and GTM activities as key contributors to this decline.

Despite the margin pressure, the board declared an interim dividend of ₹12 per share for FY26, with July 18 set as the record date for eligible shareholders. The announcement signals continued shareholder confidence even amid margin contraction.

On the hiring front, HCL Technologies brought in 1,984 freshers during the quarter, taking the total headcount to 2,23,151. The company’s hiring momentum reflects its commitment to workforce expansion in a gradually improving demand environment.

HCL Technologies Sets Steady Growth and Margin Guidance for FY26

Looking ahead, HCL Technologies has issued its guidance for FY26, projecting revenue growth in the range of 3% to 5% in constant currency terms. The services business is expected to mirror the same growth band. The company expects EBIT margins for the full year to range between 17% and 18%, suggesting a recovery from the Q1 dip.

HCL Technologies Chairperson Roshni Nadar Malhotra underlined the pivotal role of AI in shaping the company’s growth narrative. “AI has become integral to business growth of global enterprises. Our AI-led solutions are practical and comprehensive, ensuring value creation for our clients. We remain deeply focused on deploying AI ethically to maximise positive social impact,” she noted.

CEO and MD C Vijayakumar added that the company’s AI-driven offerings have been well received by clients and supported by strategic partnerships, including OpenAI. “Though the margins took a hit due to new AI and GTM investments, our pipeline remains strong and demand stable,” he said.

The company also secured multiple AI and GenAI-related orders during the quarter, reinforcing its transition toward tech-enabled, next-gen solutions. The push for innovation comes amid rising global demand for automation, data analytics, and machine learning-powered IT services. Also Read: Law College Students Return Amid Security Concerns After Campus Assault 

Conclusion: 

While HCL Technologies experienced a slight dip in quarterly profits, the company’s long-term outlook remains optimistic. Continued client interest in AI-led solutions, expansion in global markets, and consistent hiring indicate that HCL is laying the groundwork for stronger growth in upcoming quarters. With stable revenue guidance and a balanced margin outlook, the company seems ready to navigate the evolving tech landscape with resilience.