Total Bookings
$2.6B
+$0.6B QoQ
Record quarterly bookings without mega deals, indicating strong sales engine.
HCLTECH
Information Technology
14 Oct 2025
HCL Technologies Ltd — Q2 FY26
HCLTech delivered a strong Q2 FY26 with revenue of INR 31,942 crore, up 10.7% YoY, driven by broad-based growth across services and software.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
HCLTech delivered a strong Q2 FY26 with revenue of INR 31,942 crore, up 10.7% YoY, driven by broad-based growth across services and software. Services revenue grew 11.6% YoY to INR 29,116 crore, while EBIT margin improved to 17.4%. The company achieved a record booking of $2.6 billion without mega deals, signaling robust sales momentum. Advanced AI revenue crossed $100 million, representing ~3% of revenue, with strong pipeline in AI Factory and agentic AI. Management raised full-year services revenue guidance to 4-5% CC (from 3-5%), while maintaining company-level guidance at 3-5% CC. Key growth drivers include BFSI, tech, and retail/CPG verticals, with AI-led transformation deals gaining traction. Risk: Restructuring costs (55 bps impact) may persist into Q4, and auto sector slowdown continues to weigh on manufacturing.
HCLTech ने वित्त वर्ष 2026 की दूसरी तिमाही में मजबूत प्रदर्शन किया। कंपनी की कमाई 31,942 करोड़ रुपये रही, जो पिछले साल की तुलना में 10.7% अधिक है। सेवाओं और सॉफ्टवेयर दोनों में बढ़त देखी गई। सेवाओं से कमाई 11.6% बढ़कर 29,116 करोड़ रुपये हो गई। कंपनी का मुनाफा मार्जिन 17.4% तक पहुंच गया। बिना किसी बड़े सौदे के रिकॉर्ड 2.6 अरब डॉलर के नए ऑर्डर मिले, जो अच्छी बिक्री का संकेत है। एडवांस्ड AI से कमाई 100 मिलियन डॉलर पार कर गई, जो कुल कमाई का लगभग 3% है। AI फैक्ट्री और एजेंटिक AI में मजबूत संभावनाएं हैं। प्रबंधन ने सेवाओं की कमाई वृद्धि अनुमान 3-5% से बढ़ाकर 4-5% कर दिया। बैंकिंग, टेक और रिटेल क्षेत्रों से वृद्धि मिल रही है। जोखिम: पुनर्गठन लागत चौथी तिमाही तक रह सकती है, और ऑटो क्षेत्र में सुस्ती जारी है।
Key Numbers
Advanced AI Revenue
$100M+
New disclosure
First time crossing $100M, ~3% of revenue, with healthy spread across services and software.
Employee Headcount
226,640
+3,489 QoQ
Net addition of 3,489 employees, with 5,196 freshers added in Q2.
Attrition (LTM)
12.6%
-20bps QoQ
Voluntary attrition declined 20 bps sequentially, reflecting improved retention.
What Changed vs Last Quarter
NEW
FY26 services revenue guidance raised to 4-5% CC
Full-year services revenue growth guidance increased from 3-5% to 4-5% in constant currency, reflecting strong Q2 momentum.
NEW
Company-level revenue guidance maintained at 3-5% CC
Overall company guidance unchanged due to softness in software segment.
NEW
Full-year EBIT margin guidance maintained at 17-18%
Management reiterated EBIT margin guidance of 17-18% for FY26.
NEW
Restructuring costs may be slightly higher than 40 bps for full year
Restructuring impact of 55 bps in Q2; full-year impact may exceed the earlier estimate of 40 bps, continuing into Q3 and possibly Q4.
DROPPED
FY24 revenue growth guidance of 5%-5.5%
Total revenue growth for FY24 is expected in the range of 5%-5.5% in constant currency, with services trending towards the higher end.
DROPPED
FY24 operating margin guidance of 18%-19%
Operating margins for FY24 are expected to be between 18% and 19%.
DROPPED
Q4 services growth driven by four factors
Q4 services growth expected from large deal ramp-up, furlough reversal, ER&D momentum, and rest of portfolio.
NEW RISK
Restructuring costs may exceed earlier estimates
Restructuring impact of 55 bps in Q2, with full-year impact potentially higher than the 40 bps guided last quarter, continuing into Q3 and Q4.
NEW RISK
Auto sector slowdown continues to impact manufacturing
Management noted continued softness in the auto segment, which is affecting the broader manufacturing vertical.
NEW RISK
Potential layoffs from restructuring not fully quantified
When pressed by an analyst, management acknowledged some employee reductions due to skill-location mismatch, but did not provide specific numbers, raising transparency concerns.
NEW RISK
U.S. revenue mix declined YoY despite overall growth
U.S. revenue as a percentage of total revenue declined 2% YoY, though management attributed it to CTG revenue mix shift; underlying demand uncertainty remains.
RISK GONE
Soft discretionary spending in IT services
Management noted that discretionary spending remains soft with no change from previous quarters, which could impact growth.
RISK GONE
Uncertain demand environment in Americas
Despite strong growth, the Americas demand environment remains challenging, which could affect future performance.
RISK GONE
GenAI revenue still nascent
GenAI programs are currently small and in pilot stages; significant ramp-up is expected only over coming quarters.
RISK GONE
Potential margin pressure from wage hikes
Wage hikes impacted services margins by 65 bps in Q3, and Q4 will see a smaller impact of 20-25 bps.
Management Guidance
FY26 services revenue guidance raised to 4-5% CC
Full-year services revenue growth guidance increased from 3-5% to 4-5% in constant currency, reflecting strong Q2 momentum.
Management guidance revenueCompany-level revenue guidance maintained at 3-5% CC
Overall company guidance unchanged due to softness in software segment.
Management guidance revenueFull-year EBIT margin guidance maintained at 17-18%
Management reiterated EBIT margin guidance of 17-18% for FY26.
Management guidance marginsRestructuring costs may be slightly higher than 40 bps for full year
Restructuring impact of 55 bps in Q2; full-year impact may exceed the earlier estimate of 40 bps, continuing into Q3 and possibly Q4.
Management guidance otherKey Risks
Restructuring costs may exceed earlier estimates
Restructuring impact of 55 bps in Q2, with full-year impact potentially higher than the 40 bps guided last quarter, continuing into Q3 and Q4.
medium · management_commentaryAuto sector slowdown continues to impact manufacturing
Management noted continued softness in the auto segment, which is affecting the broader manufacturing vertical.
medium · management_commentaryPotential layoffs from restructuring not fully quantified
When pressed by an analyst, management acknowledged some employee reductions due to skill-location mismatch, but did not provide specific numbers, raising transparency concerns.
medium · analyst_questionU.S. revenue mix declined YoY despite overall growth
U.S. revenue as a percentage of total revenue declined 2% YoY, though management attributed it to CTG revenue mix shift; underlying demand uncertainty remains.
low · data_observationNotable Quotes
This quarter we clocked in a booking of $2.6 billion, which was well balanced across service lines, geographies, and verticals. This is the first time we've crossed the $2.5 billion mark without any mega deal.
Our advanced AI revenue this quarter exceeded the $100 million mark, representing approximately 3% of our revenue.
Our restructuring plan included both people as well as non-people. The people part... it's the location-skill mismatch as well as some of the businesses that we have acquired.
Frequently Asked Questions
What was HCLTech's revenue in Q2 FY26?
HCLTech reported revenue of ₹31,942 Cr in Q2 FY26, representing a +10.7% change compared to the same quarter last year.
What guidance did HCLTech management give for FY27?
FY26 services revenue guidance raised to 4-5% CC: Full-year services revenue growth guidance increased from 3-5% to 4-5% in constant currency, reflecting strong Q2 momentum. Company-level revenue guidance maintained at 3-5% CC: Overall company guidance unchanged due to softness in software segment. Full-year EBIT margin guidance maintained at 17-18%: Management reiterated EBIT margin guidance of 17-18% for FY26. Restructuring costs may be slightly higher than 40 bps for full year: Restructuring impact of 55 bps in Q2; full-year impact may exceed the earlier estimate of 40 bps, continuing into Q3 and possibly Q4.
What are the key risks for HCLTech in FY27?
Key risks include Restructuring costs may exceed earlier estimates — Restructuring impact of 55 bps in Q2, with full-year impact potentially higher than the 40 bps guided last quarter, continuing into Q3 and Q4.; Auto sector slowdown continues to impact manufacturing — Management noted continued softness in the auto segment, which is affecting the broader manufacturing vertical.; Potential layoffs from restructuring not fully quantified — When pressed by an analyst, management acknowledged some employee reductions due to skill-location mismatch, but did not provide specific numbers, raising transparency concerns.; U.S. revenue mix declined YoY despite overall growth — U.S. revenue as a percentage of total revenue declined 2% YoY, though management attributed it to CTG revenue mix shift; underlying demand uncertainty remains..
Did HCLTech meet its previous quarter's guidance?
Of 1 tracked promise, management 0 met, 0 close, 1 missed.
Where can I read the full HCLTech Q2 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.