HCL Technologies Ltd. Reports 21% Profit Growth

HCL Technologies (HCLTech) reported strong Q2 FY27 results, with consolidated net profit rising 21.2% year-on-year to ₹5,132 crore, while revenue increased 11.5% to ₹35,620 crore. The company’s performance exceeded analysts’ profit estimates, supported by improved operating performance and growing demand for technology and AI-related services. The company recorded new deal bookings of approximately $3.3 billion during the quarter, up 27% year-on-year, including a major $1.14 billion contract with Mercedes-Benz. Its operating margin expanded to 18.2%, while annualised advanced AI revenue reached $876 million. HCLTech also raised the lower end of its FY27 revenue growth guidance to 2.5% from 1% earlier, retaining the upper end at 4%. Going forward, investors will monitor deal execution, AI-driven revenue growth and operating margins. Despite encouraging quarterly results, management highlighted an uncertain global demand environment and the impact of AI-led changes in traditional IT services pricing. The company’s ability to sustain growth and convert its strong order pipeline into revenue will remain crucial for its stock performance.