HCLTech, India’s third largest information technology (IT) services provider by revenue, reported a 21.2 per cent rise in net profit at ₹5,132 crore in the second quarter of financial year 2027 (Q2FY27), up from ₹4,235 crore in the corresponding quarter last year.
Revenue for the quarter grew 11.5 per cent year-on-year (Y-o-Y) to ₹35,620 crore. Sequentially, the firm’s revenue was up 3 per cent and net profit grew 11 per cent.
It beat Bloomberg analysts’ estimates of ₹35,601 crore revenue and ₹4,856 crore net profit.
The company’s performance was buoyed by revenue from its advanced artificial intelligence (AI) segment. Its new bookings were the second highest in its history at $3.2 billion, with the firm witnessing its strongest first half of any financial year, said the management.
The total contract value (TCV) of $3.2 billion includes the $1.14 billion mega deal from car manufacturer Mercedes-Benz.
HCLTech revised its revenue growth guidance. The company now expects the revenue growth to be in the range of 2.5 per cent to 4 per cent. The company upped the lower end of the guidance. In Q1, it had guided for a revenue growth of 1 per cent to 4 per cent.
The advanced revenue for the quarter came in at $219 million, a growth of 28.4% quarter-on-quarter (Q-o-Q). The annualised AI revenue during the quarter came in at $876 million.
“Our performance validates our strategy and aligns with our ambition to become the best AI services company. As our numbers show, we have been able to offset the AI related deflation and grow our market share in the existing services. This quarter’s template is what we aspire to repeat in the future,” said C Vijayakumar, chief executive officer (CEO) and managing director (MD), HCLTech.
He also added that AI led revenue is already contributing to growth. “This quarter our services business grew 3 per cent sequentially, which is more than $100 million incremental revenue. Roughly 50 million has come from advanced AI and $50 million from core business,” he said.
Operating margins for the quarter was at 18.2 per cent, an expansion of 131 basis points.
The growth drivers for the quarter were the services and ERD segment, which grew 3 per cent on sequential basis and constant currency basis.
There was vertical growth across segments. Retail and CPG led with 14 per cent growth in constant currency (CC) terms Y-o-Y. This was followed by banking, financial services, and insurance (BFSI) (7.1 per cent), technology & services (5.9 per cent) and manufacturing (3.9 per cent). However, both life sciences and healthcare and telecommunications, media, publishing & entertainment were down 2.1 per cent Y-o-Y in CC terms, respectively.
“The accelerating growth in advanced AI revenue validates our business strategy. Through strategic partnerships and continued investments across the full AI stack, HCLTech is well-positioned to be a trusted technology partner for enterprises and governments globally,” said Roshni Nadar Malhotra, chairperson, HCLTech.
The company also saw a decent addition on the employee front. For the quarter, the company added 6,450 people, taking the total headcount to 230,339. HCLTech added 6,136 freshers in the quarter. Of this, 15 per cent of the freshers were hired under its Elite Engineering category. This segment of hires get a higher salary than the industry average of ₹3.2 lakh per annum.
“As we build our elite cadre of engineers, we are also scaling our differentiated forward deployed engineers (FDEs) capability that combines AI engineering and customer discovery solutions architect and rapid prototyping,” said Ram Sundararajan, chief people officer, HCLTech.
He also added that the company is launching enterprisewide FDE Academy, with tracks aligned to OpenAI, Anthropic, AWS, Google and Nvidia. “We are also working with Microsoft to build the FDE programme that further strengthens specialised talent aligned to strategic ecosystem platforms,” he added.