HCLTech profit rises 21% as AI revenue grows

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 HCL Technologies Limited (

) reported a 21.2% year-on-year rise in net profit to ₹5,132 crore in Q2 FY27. Revenue grew 11.5% to ₹35,620 crore, supported by services growth and a weaker rupee. What happened? Advanced AI revenue rose 78% year on year in constant currency to $219 million. New deal bookings reached $3.26 billion, up 27% year on year. EBIT margin expanded to 18.2%. However, HCLSoftware revenue fell 11.2% year on year in constant currency to $294 million. HCLTech added 6,450 employees during the quarter, including 6,136 freshers. Why does it matter? AI is creating new revenue opportunities, but traditional software revenue remains under pressure. A weaker rupee also supported reported revenue in rupee terms, so growth should be assessed alongside constant-currency performance. My view Record profit and strong deal bookings are encouraging. However, the decline in software revenue shows that AI growth is not translating into uniform performance across business segments. Sustaining margins while investing in AI and expanding hiring will remain important. What I am watching next I would track AI revenue, deal conversion, constant-currency growth, software recurring revenue and operating margins. Hiring costs and the impact of AI on traditional services will also be important. No Recommendations Source: NDTV Profit Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in HCL Technologies Limited.