HCLTech Q2 profit rises 21% to Rs 5,132 crore on record bookings, AI revenue up 78%
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HCLTech's July-September 2026 profit rose 21.2% to Rs 5,132 crore and deal bookings hit $3.3 billion, results released on 12 October show.
What Happened
IT services company HCLTech said on Monday, 12 October 2026, that its net profit for the July-September quarter rose 21.2% from a year earlier to Rs 5,132 crore. Revenue grew 11.5% to Rs 35,620 crore. The company also reported new deal bookings of about 3.3 billion dollars, up 27%, which it called a record for the first half of a financial year, and declared an interim dividend of Rs 12 a share. The results came after Indian markets had closed lower for the day.
Key Facts
- Net profit: Rs 5,132 crore, up 21.2% year on year and about 11% higher than the Rs 4,624 crore of the June quarter.
- Revenue: Rs 35,620 crore, up 11.5% year on year in rupee terms; in constant currency, growth was 2.6% year on year and 2.3% over the previous quarter.
- New deal bookings: about 3.3 billion dollars, up 27% year on year.
- Revenue from what the company calls advanced AI work grew 78% in constant currency to 219 million dollars.
- Operating (EBIT) margin rose by 1.31 percentage points over the quarter to 18.2%.
- Full-year guidance for 2026-27: revenue growth of 2.5% to 4% and services growth of 3% to 4% in constant currency, with an EBIT margin of 17.5% to 18.5%.
- Dividend: Rs 12 per share of face value Rs 2.
Why It Matters
IT services is one of the largest groups in India's stock indices, and the September-quarter results season is being watched for signs of whether artificial intelligence is adding to the sector's business or eating into it. HCLTech's numbers give investors a mixed but mostly encouraging answer. Its AI-related revenue is still a small share of the total, but it is growing quickly, and the jump in new contracts suggests clients are still signing large, multi-year deals.
The gap between the two growth figures is worth understanding. In rupee terms revenue rose 11.5%, but most of that came from the weaker rupee, which has been near record lows against the dollar. Measured in constant currency, which removes exchange-rate effects, the business grew 2.6% over the year. A weaker rupee lifts the reported earnings of exporters such as IT firms, which is one reason profit grew faster than underlying demand.
The margin gain is the other notable point. An 18.2% EBIT margin sits near the top of the company's full-year range, which gives it room to absorb wage rises and investment in AI tools in the second half.
The results came at the end of a weak day for the wider market. On 12 October the Sensex fell about 0.76% to 71,924.68 and the Nifty 50 lost 0.70% to 22,363.35, as FMCG and public-sector bank shares were sold and crude oil prices rose. Apollo Hospitals, ITC and Tech Mahindra were among the biggest Nifty decliners, while Dr Reddy's Laboratories and Bajaj Auto led the gainers. Later that day, data showed retail inflation rising to 5.54% for September, adding to worries about further interest rate rises.
| Measure | July-September 2026 | Change |
|---|---|---|
| Net profit | Rs 5,132 crore | up 21.2% year on year |
| Revenue | Rs 35,620 crore | up 11.5% year on year |
| Constant-currency growth | 2.6% | year on year |
| New deal bookings | about 3.3 billion dollars | up 27% |
| Advanced AI revenue | 219 million dollars | up 78% |
Impact
Short-term: The stock's reaction on 13 October will set the tone for the IT index, at a time when foreign investors have been net sellers of Indian shares.
Long-term: Record bookings tend to turn into revenue over the following quarters, so the deal pipeline supports the company's growth range for the rest of 2026-27. How fast AI revenue grows will decide whether the sector can return to faster growth.
Who is affected: HCLTech shareholders, including retail investors and mutual funds; IT employees, whose hiring and pay depend on demand; and investors in IT-heavy index funds.
Key Takeaway
HCLTech grew profit 21% in July-September 2026 on record deal wins and fast-rising AI revenue, though a weak rupee flattered the headline growth.
Questions and Answers
How much profit did HCLTech make in the September 2026 quarter?
HCLTech's net profit was Rs 5,132 crore for July-September 2026, up 21.2% from a year earlier, on revenue of Rs 35,620 crore.
What dividend has HCLTech declared?
The board declared an interim dividend of Rs 12 per share, on shares with a face value of Rs 2.
Why did profit rise much faster than business growth?
Underlying revenue grew only 2.6% in constant currency. A weaker rupee raised the rupee value of dollar earnings, and the operating margin improved to 18.2%, both of which lifted profit.
What does HCLTech expect for the full year?
It expects revenue growth of 2.5% to 4% and services growth of 3% to 4% in constant currency for 2026-27, with an EBIT margin between 17.5% and 18.5%.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
Sourced and fact-checked by the Peepals Global Editorial Team
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Reported, fact-checked and published by the Peepals Global Editorial Team.
