HCL Technologies (HCLTECH) Q2 25/26 (Media) earnings summary

Executive summary

• Achieved consolidated revenue of ₹31,942 crore for Q2 FY26, up 5.2% QoQ and 10.7% YoY, with USD revenue at $3,644M, up 2.8% QoQ and 5.8% YoY.

• Bookings reached a record $2.6 billion, up 41.8% QoQ and 15.8% YoY, diversified across service lines and geographies, with no mega-deal reliance.

• Advanced AI revenue exceeded $100 million, now 3% of total revenue, and digital revenue up 15% YoY, now 42% of services.

• Recognized by TIME Magazine as the highest ranked India-headquartered tech company and for digital sustainability, with multiple industry awards.

• Net addition of 3,489 employees, with attrition at 12.6% LTM, down from 12.9% YoY.

Financial highlights

• EBIT at ₹5,550 crore (17.4% margin), up 12.3% QoQ and 3.5% YoY; net income at ₹4,235 crore (13.3% margin), up 10.2% QoQ and flat YoY.

• Services revenue: ₹29,116 crore, up 5.4% QoQ and 11.6% YoY; Software revenue: ₹2,923 crore, up 3.4% QoQ and 2% YoY.

• Operating margin improved by 116 bps sequentially to 17.5%; gross margin at 34.1% (INR), up from 33.7% QoQ.

• Diluted EPS for the last 12 months: ₹62.57.

• Free cash flow to net income at 125% (LTM); ROIC at 38.6%, up 290 bps YoY.

Outlook and guidance

• FY26 revenue growth expected at 3–5% YoY in constant currency; services revenue growth guided at 4–5% YoY in constant currency.

• EBIT margin expected between 17–18%.

• Company-level guidance remains at 3–5% in constant currency due to software segment softness.