HCL Technologies Earnings Summary — Q1 FY2027
HCL Technologies Reports Steady Revenue Growth with Net Profit Reaching ₹4,626 Crore
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 9 consecutive quarters.
- Revenue of ₹34,579 Cr is 13.9% higher year-on-year.
- Revenue has compounded at 9.0% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹4,624 Cr is 20.3% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 6.8% annualised across the period.
- Operating margin stands at 19.9% in Q1 FY2027.
- Operating margin compressed by 2 bps year-on-year.
- Over the last two years operating margin has contracted by 78 bps.
- PBT margin is 17.7%.
- Expenses grew 14.0% against revenue growth of 13.9%.
- Operating profit of ₹6,870 Cr is 13.8% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 74/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 34,579 | 33,981 | 33,872 | 31,942 | 30,349 | 30,246 | 29,890 | 28,862 | 28,057 | 28,499 |
| Expenses | Stable | 27,709 | 27,269 | 26,460 | 25,397 | 24,314 | 23,764 | 23,030 | 22,493 | 22,264 | 22,382 |
| Operating Profit | Stable | 6,870 | 6,712 | 7,412 | 6,545 | 6,035 | 6,482 | 6,860 | 6,369 | 5,793 | 6,117 |
| Operating Margin | Stable | 19.9% | 19.8% | 21.9% | 20.5% | 19.9% | 21.4% | 22.9% | 22.1% | 20.6% | 21.5% |
| Other Income | Volatile | 361 | 322 | -571 | 415 | 456 | 449 | 477 | 456 | 1,103 | 416 |
| Interest | Stable | 84 | 240 | 205 | 215 | 209 | 156 | 166 | 131 | 191 | 171 |
| Depreciation | Stable | 1,039 | 1,092 | 1,127 | 1,043 | 1,093 | 1,040 | 1,039 | 1,007 | 998 | 1,093 |
| Profit Before Tax | Stable | 6,108 | 5,702 | 5,509 | 5,702 | 5,189 | 5,735 | 6,132 | 5,687 | 5,707 | 5,269 |
| Tax | Stable | 1,482 | 1,212 | 1,427 | 1,466 | 1,345 | 1,426 | 1,538 | 1,450 | 1,448 | 1,274 |
| Net Profit | Stable | 4,624 | 4,488 | 4,076 | 4,235 | 3,843 | 4,307 | 4,591 | 4,235 | 4,257 | 3,986 |
| Net Margin | Stable | 13.4% | 13.2% | 12.0% | 13.3% | 12.7% | 14.2% | 15.4% | 14.7% | 15.2% | 14.0% |
Key Takeaways
- Revenue grew to ₹34,579 crore, marking a 23.2% year-on-year increase compared to the same period previous year.
- Net profit saw a healthy sequential growth of 3.03%, reaching ₹4,626 crore in Q1 FY2027.
- Operating margins (OPM) remained stable at 20%, showing resilience despite global wage inflation and macro volatility.
- The company maintains a strong dividend payout regime, historically hovering around 90%.
- Transition into full-stack AI and Data Center services is a key strategic pivot with ₹3,500 crore earmarked for investments.
- Interest costs have spiked significantly to ₹84 crore this quarter but remain lower than many prior quarters in the historical table.
Management Guidance
Management is focused on the 'Digital, Engineering, and Cloud' transition and is prioritizing high-return investments in AI-integrated offerings to combat industry-wide technological displacement.
Sentiment Shift
Stable
Consistently high return ratios (ROE at 24%) and steady revenue growth support a stable outlook despite moderate profit deceleration over a 3-year period.
Outlook
HCLTech is positioned as a high-quality compounder with a focus on Digital and Engineering services. While OPM has slightly dipped from peaks of 24%, the current 20% floor and strong FCF generation provide a safety net for upcoming AI investments.
From the Annual Report (Key Quotes)
“HCL Technologies has established itself as a formidable global IT services leader, demonstrating consistent revenue scaling.”
“The strategy to invest in full-stack AI offerings displays a forward-thinking approach to technological displacement.”
“Business remains highly resilient with deep expertise in Remote Infrastructure Management and Engineering services.”
Official Quarterly Documents
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This summary is AI-generated from HCL Technologies's latest quarterly filing and earnings call. For informational purposes only — not investment advice.