Promises
1 promise
Promise Tracker
0 delivered, 0 close, 1 missed.
View Promises →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.
bullish
high
✓ Verified against BSE filing
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।
Promises0 met · 1 missedRisks4 trackedTranscriptfull text
Research workspace
Focused Modules
Risks
4 risks
Risk Intelligence
Restructuring costs may exceed earlier estimates
View Risks →
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Total Bookings
$2.6B
+$0.6B QoQ
Record quarterly bookings without mega deals, indicating strong sales engine.
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
Company-level revenue guidance maintained at 3-5% CC
Overall company guidance unchanged due to softness in software segment.
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.
UPDATED
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.
UPDATED
Full-year EBIT margin guidance maintained at 17-18%
Management reiterated EBIT margin guidance of 17-18% for FY26.
DROPPED
Restructuring program in FY26
One-time restructuring costs (people and non-people) of 30-40 bps impact in subsequent quarters to improve structural agility.
DROPPED
AI investments to normalize by FY27
Management expects SG&A percentage to normalize in FY27 as growth catches up with AI investments.
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
Margin pressure from restructuring and utilization
Restructuring costs and lower utilization from skill mismatches could persist into Q2, weighing on margins.
RISK GONE
Demand weakness in manufacturing and auto
Automotive and manufacturing verticals continue to see ramp-downs, with no quick recovery expected.
RISK GONE
AI-driven revenue deflation may outpace wallet share gains
Productivity benefits from GenAI could reduce revenue from existing contracts, though management claims wallet share gains offset this.
RISK GONE
Deal slippages could impact revenue ramp
Two large deals slipped from Q1 to Q2, and ramp-up of a large contact center deal is slower than expected.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q3 FY25
Management indicated that the automotive segment remains challenged, with declines expected for another couple of quarters before recovery.
Mentioned in Q1 FY25, Q4 FY25
Management expects discretionary spending to remain weak, with new projects requiring strong ROI justification amid macro challenges.
Mentioned in Q1 FY25, Q3 FY25
Implies a sequential decline or modest growth due to large project completion and planned mega deal rundown.
Fast read
Guidance and risk preview
Full-year services revenue growth guidance increased from 3-5% to 4-5% in constant currency, reflecting strong Q2 momentum.
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.
View Risks →