HCLTech Q2 profit rises 21.2% to ₹5,132 crore

HCL Technologies Limited (NSE: HCLTECH) reported consolidated net profit of ₹5,132 crore for Q2 FY27, up 21.2% year on year. Revenue rose 11.5% to ₹35,620 crore. The operating margin improved to 18.2%, while new deal bookings reached $3.258 billion. Advanced AI revenue increased to $219 million, up 28.4% sequentially in constant-currency terms. Why it matters: Profit growth, margin improvement and deal wins point to healthy demand in parts of HCLTech’s services business. However, the company’s FY27 constant-currency revenue growth guidance remains at 2.5% to 4%. This suggests management is still cautious about the demand outlook. My view: The margin improvement and deal pipeline are encouraging, but future revenue conversion matters more than bookings alone. AI growth is worth tracking alongside traditional software revenue and client spending. What to watch next: Quarterly revenue growth, margin performance and progress against FY27 guidance. Stance: Operating performance has improved, but guidance and revenue conversion remain key monitoring points.