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HCLTech reported revenue of US$3,650 mn

ICICIdirect Research 14 Jul 2026 DISCLAIMER

News: HCLTech reported revenue of US$3,650 mn, down 0.9% QoQ & up 3% YoY (in CC terms down 0.5% QoQ/ up 2.6% YoY). The services business revenue was down 0.7% QoQ and up 3.5% YoY CC. IT services was flat QoQ while ER&D services de-grew by 3.7% and Software grew 2.2% QoQ CC. Annualised Advanced AI Revenue came at US$171mn, up 10.6% QoQ CC/ 62.1% YoY CC. Geography wise on a YoY basis in CC terms, growth was led by India (3% of mix), ROW (13% of mix), Americas (56% of mix) and Europe (28% of mix) reporting a growth of 16.9%, 10.8%, 2.9% and 0.1%. Segment wise on YoY basis in CC terms, growth was led by Public Services (9.3% of the mix), Retail & CPG (10.3% of the mix), Tech & Services (14% of the mix), Financial Services (22.1% of the mix), Manufacturing (18.7% of the mix) and Life Sciences & Healthcare (14% of the mix) which grew by 17.8%, 10.7%, 4.3%, 3.5%, 3.3% and 1.6% respectively, while TMPE (11% of the mix) declined by 10.9%. EBIT margin at 16.9%, was up ~40 bps QoQ, as lower restructuring costs QoQ, coupled with currency tailwind aided despite muted operating leverage. The Services (IT & Business services and ER&D services) margin stood at 16.7%, up ~60 bps QoQ. PAT stood at ₹4,624 crore, up 3% QoQ/ 20.3% YoY. LTM Attrition came at 12.7%, up ~20 bps QoQ. HCLTech won a TCV of US$2.407 bn (up 24% QoQ & 33% YoY). The company declared an interim dividend of ₹12 per share

View: HCLTech’s Q1 performance was on expected lines with strong deal TCV being key positive. Management maintained FY27 services revenue growth guidance of 1.5–4.5% YoY CC and overall company guidance of 1–4% YoY CC. On the margins front too it maintained its margins for full-year in the range of 17.5–18.5%. We note that the management has indicated that given the macro/client specific headwinds, and mega deal ramp up from Q4 end onwards, deal TCV has not resulted into guidance increase. Moreover, higher valuations vs. peers such as TCS/Infosys will keep rerating under check, in our view.

Impact: Neutral

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