HCL Technologies Ltd
HCL Technologies Q2 FY26 earnings call: Revenue & Margins
Q2 FY26 earnings call: what management guided on revenue, margins and order book.
The short version
Full-year Services revenue growth guidance raised to 4%-5% in constant currency terms. Full-year Services revenue growth guidance raised to 4%-5% in constant currency; overall company guidance steady at 3%-5% - EBIT margin guidance maintained at 17%-18% for the fiscal year, with restructuring impacts expected to normalize over next quarters - EBITDA margin anticipated to recover post restructuring and cost optimization, with transparency on margin improvements expected in Q4 FY26 guidance (April) - Diluted EPS for last 12 months at Rs.
From HCL Technologies Ltd's Q2 FY26 earnings-call transcript · updated 16 Oct 2026.
Revenue & Sales Performance
- Full-year Services revenue growth guidance raised to 4%-5% in constant currency terms.
- Company-level revenue growth guidance remains at 3%-5% in constant currency due to softness in Software segment.
- Expect net new booking run rate to increase from $2 billion to around $2.5 billion, supporting higher growth.
- Renewals with scope expansions contribute additively to bookings and revenue.
- Advanced AI propositions, IP, and platforms expected to drive significant incremental revenue and growth over next 2-3 years.
- Moderate impact of AI on existing business; modernization programs seen as a key growth driver.
- Pipeline remains robust and at a record high, well distributed across verticals and geographies.
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Profitability & Margins
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Capital Expenditure Plans
- HCLTech is focused on an asset-light business model, avoiding large investments in physical data centers or real estate.
- Investments are directed toward building more Intellectual Property (IPs), platforms, and AI capabilities rather than heavy capital expenditure.
- The AI Factory initiative targets servicing mega data centers built by large tech players, representing a significant services opportunity without capital-heavy investments.
- They are investing in Advanced AI propositions, IPs, go-to-market capabilities, and partnerships to maintain long-term business vibrancy and growth.
- Specific new products like AI Force, an AI platform for software development transformation, are considered strategic investments driving deal wins.
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Fundraising & Capital Structure
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Order Book & Pipeline
- HCLTech has crossed $2.5 billion in new bookings (excluding mega deals).
- New bookings metric excludes rate card deals and renewals.
- New bookings have a strong correlation with revenue growth, typically with a 1-2 quarter lag.
- Nearly all new deals include AI offerings.
- The pipeline remains robust and at a record high, well distributed across business segments, verticals, and geographies.
- Large programs in modernization like those for Ericsson and a major European retailer are upwards of $100 million.
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HCL Technologies Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest (Q4 FY26): revenue ₹34.0K Cr, net profit ₹4.5K Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.
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What HCL Technologies's management said in earlier quarters
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Frequently Asked Questions
What were HCL Technologies Ltd Q2 FY26 results?
Full-year Services revenue growth guidance raised to 4%-5% in constant currency terms. Full-year Services revenue growth guidance raised to 4%-5% in constant currency; overall company guidance steady at 3%-5% - EBIT margin guidance maintained at 17%-18% for the fiscal year, with restructuring impacts expected to normalize over next quarters - EBITDA margin anticipated to recover post restructuring and cost optimization, with transparency on margin improvements expected in Q4 FY26 guidance (April) - Diluted EPS for last 12 months at Rs.
What is HCL Technologies Ltd share price analysis?
HCL Technologies Ltd currently shows a neutral. The stock trades at a P/E of 20.6 with a market cap of ₹374,486 Cr. Investors should review the full earnings analysis for detailed insights.
Is HCL Technologies Ltd planning capital expenditure?
HCLTech is focused on an asset-light business model, avoiding large investments in physical data centers or real estate.
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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.