HCLTech Reports Strong Q1 Growth, Raises Dividend

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

reported a 20.3% year-on-year increase in consolidated net profit to ₹4,624 crore for the first quarter of FY27, compared with ₹3,843 crore in the same period last year. Revenue from operations grew 13.9% to ₹34,579 crore, supported by steady growth across its IT services business and continued demand from key verticals. The company also declared an interim dividend of ₹12 per equity share. The company's EBIT margin improved to 17.6%, reflecting better operational efficiency. HCLTech recorded total new deal wins of $2.4 billion, its highest-ever first-quarter bookings, providing strong revenue visibility for the coming quarters. The company maintained its FY27 revenue growth guidance of 3–5% in constant currency and EBIT margin guidance of 17–18%, while continuing to invest in AI, cloud, engineering services, and its newly announced data centre business. Industry & Economic Impact: The results highlight the resilience of India's IT services industry despite a cautious global technology spending environment. Strong deal wins and continued investments in AI, cloud, and digital transformation indicate that enterprises remain committed to long-term technology modernization, even as discretionary spending remains selective. From an economic perspective, sustained growth by leading IT companies supports India's services exports, generates high-skilled employment, and strengthens foreign exchange earnings. Continued investments in AI infrastructure and digital capabilities also reinforce India's position as a global technology hub and are expected to contribute to long-term productivity and economic growth. Source: Economic Times No Recommendations