HCL Tech Q2 Results Live Updates: IT major likely to report steady earnings; Q2 profit could rise up to 12% YoY

Business News›Markets›Stocks›Live Blog›HCL Tech Q2 Results Live Updates: IT major's profit rises 11% QoQ to Rs 5,132 crore; co declares an interim dividend of Rs 12/share

HCL Tech Q2 earnings live updates

HCL Technologies Q2 Results Live: IT services major HCL Technologies on Monday reported a 21% year-on-year (YoY) rise in consolidated net profit to Rs 5,132 crore for the second quarter of FY27, compared with Rs 4,235 crore in the year-ago period.

HCL Q2 Earnings News Live: The company’s board also declared a second interim dividend of Rs 12 per share for FY27. The record date for the dividend has been fixed at October 16, 2026, while the payout will be made on October 26, 2026. Read More

1 New Update

- C Vijayakumar, CEO & Managing Director, HCL Tech

- Roshni Nadar Malhotra, Chairperson, HCL Tech

IT services major HCL Technologies on Monday reported a 21% year-on-year (YoY) rise in consolidated net profit to Rs 5,132 crore for the second quarter of FY27, compared with Rs 4,235 crore in the year-ago period. Read More

The record date for the payment of the interim dividend will be October 16 and the payment date is October 26, 2026.

HCL Tech shall report revenue growth of +2.7%/+2.6% QoQ in CC/USD, driven by IT (+2.8%) and ER&D (+2.5%), according to the brokerage. EBIT margin is likely to expand 70bp QoQ on revenue growth and FX tailwind. Nuvama expects HCL Tech to tweak its FY27 Services guidance to 2.5%–4.0% (from 1.5–4.5%) CC YoY maintaining the mid-point. EBIT margin guidance is likely to be trimmed to lower half of 17.5–18.5% range.

Nuvama expects HCL Tech to revise its services growth guidance to 2.5-4%, while trimming its margin expectations to the lower half of the 17.5-18.5% range.

• Guardian: Sign new expanded partnership for AI-powered modernization across tech & operations to transform customer experience with South America’s first cross-platform eSIM transfer capability
• WACKER: WACKER establishes Global Capability Center in India with HCL Tech
• M Group: AI-led IT transformation across 200+ locations

The brokerage expects HCL Tech's Q2 revenue to increase by 2.4% QoQ in CC & 2.3% in USD terms, with 1.2% QoQ CC organic growth & contribution from Jaspersoft and HPE acquisitions. On the margins front, it expects margins to improve marginally by 30 bps as per Q2 seasonality.

Emkay expects a possibility of recovery in discretionary spending of the company in 2H and any impact from increased macro and geopolitical uncertainties on the pace of decision making and tech spending.

The partnership with a Europe-headquartered, Fortune Global 50 firm is set to establish an AI-driven operating model to transform and manage its global digital workplace and enterprise networks. The initial term of the agreement is from Jul-26 to Dec-31, extendable for a further period of 5 years. The estimated value of the agreement during the initial term is $1.14bn. This is entirely a net new business for the company.

The brokerage expects services (IT + ER&D) revenue to grow 3% QoQ constant currency (CC), reflecting contribution of ~1% from Jaspersoft and the HPE Telco business. Consequently, consolidated revenue is expected to grow 3.0% QoQ CC.

The margin commentary will be closely tracked because acquisitions may add revenue but dilute profitability. Kotak expects stable EBIT margin despite rupee depreciation, as currency benefits may be offset by acquisition-related dilution. JM Financial said operational efficiencies could support margins, but investments and acquisitions may act as headwinds.

HCL Tech closes the day's session at Rs 1,220 apiece on the BSE.

(1) Margins in newly signed large deals
(2) AI-led deflation in the existing book and growth from AI-native services
(3) Pricing pressure in the core business and its impact on margins
(4) Factors driving consistent success in mega-deal wins
(5) Drivers of growth acceleration
(6) Progress on AI data center investments and customer commitments
(7) Revenue contribution and profitability of the Guardian Life deal
(8) Discretionary spending trends in telecom, manufacturing and ER&D

(5) Drivers of growth acceleration

JM Financial is building in a 3% constant-currency growth, with cross-currency headwinds reducing dollar revenue growth to 2.8%. It expects inorganic contribution of about 90 basis points in the quarter, including 70 basis points from HPE Telco and 20 basis points from Jaspersoft.

We expect the strong growth for HCLT (+1.8% q-q CC), reflecting CC organic growth of c0.8% q-q and inorganic contribution of c1% stemming from Jaspersoft and HPE Telco Solutions.

HCL Tech shares trade marginally higher ahead of the company's Q2 results.

The brokerage expects HCL Tech’s revenue to grow 2.4% QoQ in constant currency (CC) terms and 2.3% in USD terms, driven by organic CC growth of 1.2% QoQ and contributions from the Jaspersoft and HPE acquisitions. On the margin front, we expect a marginal improvement of 30 bps, in line with Q2 seasonality.

The brokerage expects HCLTech to narrow its FY27 constant-currency (CC) revenue growth guidance to 3-4% year-on-year (YoY) overall and 3.5-4.5% for Services, factoring in contributions from the Jaspersoft and HPE Telco Solutions acquisitions. The company is likely to retain its EBIT margin guidance at 17.5-18.5%.

Services revenue is expected to grow 1.9% quarter-on-quarter in constant currency terms, supported by stronger second-quarter seasonality and the ramp-up of large deals. The Software business is projected to post sequential growth of 0.5%, driven by seasonal trends. Overall, revenue is expected to increase 1.8% quarter-on-quarter in constant currency terms, comprising organic growth of around 0.8% and an inorganic contribution of approximately 1% from the Jaspersoft acquisition and HPE Telco Solutions business.

HCL Technologies is expected to report sequential revenue growth of 2.7% in constant currency and 2.6% in dollar terms, driven by growth of 2.8% in IT services and 2.5% in engineering and R&D services. The growth is likely to include an inorganic contribution of around 0.8%. EBIT margin is expected to expand by 70 basis points quarter-on-quarter, supported by revenue growth and favourable currency movements.

The company is expected to revise its FY27 Services revenue growth guidance to 2.5%-4.0% in constant currency terms from the earlier range of 1.5%-4.5%, retaining the midpoint at 3.25%. However, EBIT margin guidance could be lowered towards the bottom half of the 17.5%-18.5% range.

Investors will closely monitor HCL Tech’s margin outlook, as acquisitions could boost revenue while weighing on profitability. JM Financial expects operational efficiencies to support margins, although higher investments and acquisitions could pose challenges.

HCL Technologies is expected to report a 12% year-on-year (YoY) rise in net profit and 16% growth in revenue for the July-September quarter of FY27, according to the average estimates of seven brokerages. Acquisitions, deal ramp-ups and seasonal demand are likely to support the IT major’s performance during the quarter.

Shares of HCL Technologies rose around 2% on Monday ahead of the IT major’s July-September quarter earnings for FY27, with brokerages expecting double-digit growth in revenue and profit, alongside a possible revision in the company’s guidance.

Kotak expects organic constant-currency revenue growth of 2% sequentially, led by ramp-up of the Guardian Life deal and seasonal strength. It expects the HPE Telco Solutions and Jaspersoft acquisitions to add 110 basis points to revenue. The brokerage also expects strong deal total contract value of $3.75 billion, helped by a EUR 1 billion mega deal and the large Guardian Life deal.

Analysts will look for updates on AI-led revenue compression, which Motilal Oswal estimates at a 2-3% portfolio impact, and progress in building new revenue pools to offset that pressure. Emkay will track adoption of HCLTech’s AI Force platform, customer commitments for AI data centre investments and any change in hiring strategy because of AI.

Jefferies expects revenue to grow 2.7% quarter-on-quarter in constant currency, including about 100 basis points of inorganic contribution. It expects the services business to grow 2.5% and the software segment to grow 4%. The brokerage sees EBIT margin rising about 80 basis points sequentially.

Motilal Oswal expects BFSI and hi-tech to remain relatively resilient, while manufacturing, telecom and retail may stay subdued. It also expects weakness in discretionary spending to continue.

• Emkay expects HCL Tech to revise services growth guidance to 3.5-4.5% and overall constant-currency revenue growth guidance to 3-4%, while retaining EBIT margin guidance of 17.5-18.5%.
• Kotak expects the company to increase overall revenue growth guidance to 3-4%, with organic growth guidance at 2-3%.
• Jefferies said the company could narrow its FY27 services revenue growth guidance by 50 basis points to 2-4% and maintain margin guidance.
• Nuvama expects HCLTech to tweak its services guidance to 2.5-4%, while trimming margin expectations to the lower half of the 17.5-18.5% band.