HCL Tech’s April-June Profit Dips 10% On Year, Revenue Up 8%

HCL Technologies kicked off the financial year 2025-26 with a mixed bag of earnings for the April-June quarter. While the company posted an 8% on-year rise in revenue, its bottom line took a hit, falling 10% compared to the same period last year.

The company reported a consolidated net profit of ₹3,843 crore for the June quarter, lower than the ₹4,257 crore it posted a year ago and falling short of market expectations pegged at around ₹4,224 crore. Despite this, revenue from operations rose to ₹30,349 crore, up from ₹28,057 crore in the year-ago quarter and marginally above estimates. On a sequential basis, revenue was largely flat, up just 0.3% from the March quarter.

The dip in profitability was attributed to lower employee utilisation and continued investments in generative AI and go-to-market strategies, which also pulled down the operating margin to 16.3%.

To reward shareholders, HCL Tech declared an interim dividend of ₹12 per share for the current financial year. The record date for the dividend has been set as July 18, and the payout will be made on July 28.

Looking ahead, the company has maintained a cautious growth outlook. It expects revenue for 2025-26 to grow between 3% and 5% in constant currency terms. Services revenue is also seen growing in the same range, while EBIT margins are projected to remain between 17% and 18%.

Chairperson Roshni Nadar Malhotra highlighted the company’s deepening focus on responsible AI. “AI has become integral to business growth of global enterprises. HCL Tech’s capabilities and strategic partnerships ensure our AI-led solutions are practical, comprehensive and significant value creators to our clients,” she said.

CEO and MD C Vijayakumar echoed similar optimism despite the margin pressure. “Our AI propositions are resonating well with our clients and have been augmented further by our partnership with OpenAI. Our pipeline continues to grow as the demand environment was stable during the quarter,” he said, adding that HCL Tech remains well-positioned in the AI-driven transformation of global enterprises.

While the quarter was weighed down by cost pressures, the company believes the groundwork laid in generative AI and new client engagements will start showing stronger results in the coming quarters.