HCL Technologies Ltd Q1 FY26 Results & Concall Highlights: Revenue, Margins & Order Book

Published 4 Aug 2026 | IT - Software | Market Cap: ₹3.7L Cr

HCLTech expects revenue growth of 3% to 5% in constant currency for FY26, improved from previous guidance, driven by strong Q1 performance and positive outlook for remaining quarters. Revenue Growth:** HCLTech projects 3%-5% constant currency revenue growth for FY26, supported by strong Q1 performance and a balanced, diversified portfolio. - **Margin Expectations:** EBIT margin guidance is adjusted lower to 17%-18% for FY26 due to utilization challenges, restructuring, and AI investments, but the company aims to return to its aspirational 19%-20% margin range by FY27. - **Earnings:** Diluted EPS for the last 12 months is Rs.

From HCL Technologies Ltd's Q1 FY26 earnings-call transcript · updated 23 Aug 2026.

Price

₹1,302

Market Cap

₹3.7L Cr

P/E Ratio

20.4

How does HCL Technologies Ltd rank in IT - Software?

Compare HCL Technologies Ltd against every IT - Software company this quarter on revenue, margins and earnings-call signals.

View IT - Software leaderboard →

HCL Technologies Ltd — Quarterly revenue & net profit

Revenue Net Profit

Dec 2024

Mar 2025

Jun 2025

Sep 2025

Dec 2025

Mar 2026

Reported quarterly figures (₹ Cr). Latest: revenue ₹34.0K Cr, net profit ₹4.5K Cr.

Full financials →

📊 Revenue & Sales Performance

→HCLTech expects revenue growth of 3% to 5% in constant currency for FY26, improved from previous guidance, driven by strong Q1 performance and positive outlook for remaining quarters.
→Financial Services and Technology verticals show strong demand and discretionary spending, acting as growth engines.
→Pipeline remains strong with a focus on Digital business, Engineering Services, and AI-led transformational propositions, especially in application modernization.
→Delays in large deal signings moved from Q1 to Q2, with optimism for conversion and a step-up in TCV next quarter.
→AI and Gen AI are central to nearly every deal, with increased adoption impacting software development and IT operations positively.
→Expansion in specialized talent and strategic partnerships (e.g., OpenAI) are expected to drive future growth.
→Some verticals like Automotive, Manufacturing, Retail, CPG, and Life Sciences face pressures.

📈 Profitability & Margins

→**Revenue Growth:** HCLTech projects 3%-5% constant currency revenue growth for FY26, supported by strong Q1 performance and a balanced, diversified portfolio.
→**Margin Expectations:** EBIT margin guidance is adjusted lower to 17%-18% for FY26 due to utilization challenges, restructuring, and AI investments, but the company aims to return to its aspirational 19%-20% margin range by FY27.
→**Earnings:** Diluted EPS for the last 12 months is Rs. 62.57, up 3.4% YoY. The company expects normalized margins and profitability to improve over the next 3 quarters.
→**Investments and Impact:** Investments in Gen AI and go-to-market capabilities are ongoing and expected to normalize by FY27, positively impacting margins and profits.
→**Structural Agility:** Restructuring efforts are underway to improve operational efficiency and support sustainable long-term growth.
→**Overall Outlook:** Confident about achieving revenue and profit growth driven by strong bookings, AI-powered solutions, and market resilience.

🏗️ Capital Expenditure Plans

- The company is making strategic investments primarily in Generative AI and expansion of go-to-market teams. - Investments involve people capability building, platform development, and associated token costs related to AI initiatives. - These AI-focused investments are expected to normalize by FY27, with margins stabilizing thereafter. - A restructuring program is underway both on people and non-people costs to enhance structural agility for the AI era; associated one-time costs are factored into current guidance. - The company is not focusing on owning assets like data centers but is partnering to deliver GPU-as-a-service and edge AI infrastructure. - There is a gradual ramp-up anticipated in Edge AI deployments starting with individual locations. No explicit mention of large-scale capital expenditure on physical infrastructure; focus is on capability, platform investments, and strategic partnerships related to AI and cloud services.

💰 Fundraising & Capital Structure

The transcript does not mention any current or future plans for fundraising through debt or equity. Key points related to financials and investments are: - Strong cash position with gross cash at $3.46 billion and net cash at $3.19 billion as of Q1 FY26. - Focus on investments primarily in AI, sales and marketing, and people capacity out of existing resources. - No explicit mention of raising additional capital via debt or equity. - Emphasis on operational cash flow generation: operating cash flow of $2.57 billion and free cash flow of $2.42 billion over the last 12 months. - Restructuring costs for agility in the AI era are planned but funded internally. - The company remains confident in meeting financial guidance and investment plans without external fundraising. Hence, there is no indicated need or plan for raising funds through debt or equity at this time.

📋 Order Book & Pipeline

→The company had two large deal signings expected by the end of June, which were delayed to July due to procedural reasons but remain intact.
→There is a large vendor consolidation win in the Financial Services (FS) vertical expected to drive strong revenue growth this year and next, though it's not included in bookings yet as it is time and material-based and recognized only upon billing.
→Net new bookings for Q1 were $1.8 billion, with good balance across service lines, geographies, and verticals.
→Several large deals moved from Q1 to Q2, impacting short-term revenue but expected to convert well.
→The pipeline remains strong, especially in Digital business, AI-driven solutions, application modernization, and contact center transformation.
→AI and Generative AI capabilities are increasingly central to new deals.
→Financial Services and Technology verticals show promising discretionary spend; some stress seen in Manufacturing, Retail, CPG, and Life Sciences.

Key Metrics

What HCL Technologies Ltd's management said in earlier quarters

Others in IT - Software this season

C.E. Info Systems Ltd (Q1 FY26)
Automotive and mobility tech (A&M) segment showed robust growth of 24.4% YoY despite modest broader automotive industry growth, driven by improved adoption of…
Tanla Platforms Ltd (Q1 FY26)
Q1 FY26 saw consecutive revenue growth: 1.6% QoQ and 3.8% YoY to ₹1,041 crores. Key concall takeaways from Tanla Platforms Ltd's Q1 FY26 earnings call — and…
Persistent Systems (Q1 FY26)
EPS grew 36.5% YoY in Q1 FY26; continued profit growth reflects operational leverage and better collections. Key concall takeaways from Persistent Systems…
Coforge Ltd (Q1 FY26)
Coforge achieved a 9.6% sequential dollar revenue growth in Q1 FY2026, with 51.5% YoY growth in constant currency (CC). Key concall takeaways from Coforge…

Compare:vs TCS vs Infosys vs Wipro

🔎 Who's planning the most growth?

Companies ranked by management's own guidance — revenue, margins, capex and order book, from every earnings call in India.

See rankings →

Frequently Asked Questions

What were HCL Technologies Ltd Q1 FY26 results?

What is HCL Technologies Ltd share price analysis?

HCL Technologies Ltd currently shows a neutral. The stock trades at a P/E of 20.4 with a market cap of ₹369,058 Cr. Investors should review the full earnings analysis for detailed insights.

Is HCL Technologies Ltd planning capital expenditure?

The company is making strategic investments primarily in Generative AI and expansion of go-to-market teams.

Keep HCL Technologies Ltd on your radar — track it to get its next earnings analysis in your feed.

This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.