HCLTech FY2026 Results – Investor Overview

1. Key Financial Highlights

Revenue: ₹130,144 cr (+11.2% YoY) / $14,664 m (+6% YoY). Constant‑currency (CC) revenue up 3.9%.
Services: HCLTech Services CC revenue grew 4.8% YoY, underpinning the bulk of earnings.
Advanced AI: Annualized AI revenue reached $620 m, a 6% QoQ increase in Q4.
Profitability: EBIT ₹22,397 cr (17.2% of revenue, up 4.6% YoY); EBIT margin excl. restructuring 17.9%.
Net Income: ₹17,361 cr (13.3% of revenue, down 0.2% YoY); EPS (diluted) ₹64.01.
Cash Generation: Free‑cash‑flow‑to‑NI 107%; OCF/NI 115%.
Dividend: ₹60 per share for FY26 (97.6% payout), plus ₹24 per share for Q4.
ROIC: Company 40.3% (+235 bps YoY); Services 47.0% (+155 bps YoY).

IT & Business Services remain the core (≈75% of revenue). Slight margin compression (EBIT margin fell to 16.3% YoY).
Engineering & R&D Services stable but margin pressure observed.
HCLSoftware revenue fell 14.1% YoY, ARR flat at $1.05 bn, indicating a transition to subscription models.

AI Expansion: Multiple $100 m+ AI‑factory and AI‑engineering contracts across aerospace, semiconductor, pharma, and defense; launch of AI Force 2.0, VisionX 2.0, and collaborations with NVIDIA, Google Gemini, AWS, and MIT Media Lab.
ESG & Recognition: Included in Fortune’s World’s Most Admired Companies 2026, S&P Global Sustainability Yearbook, and Ethisphere’s World’s Most Ethical Companies.
Talent Management: Total headcount 227,181 (+3,761 YoY); attrition improved to 12.5%; 11,744 freshers added, supporting AI‑centric delivery.

Revenue Growth: Expected 1‑4% YoY in CC (services 1.5‑4.5% CC).
EBIT Margin: Target 17.5‑18.5%.
Risks:
- Slower discretionary spend affecting services demand.
- Ongoing softness in the software segment.
- One‑time impact of new labour codes (₹956 cr EBIT, ₹719 cr NI) already reflected; future regulatory cost surprises possible.
- Margin pressure from restructuring costs (65 bps EBIT, 49 bps NI).

Positive: Robust revenue growth, accelerating AI revenue, high ROIC, and an attractive dividend yield.
Caution: Modest forward‑growth guidance, declining software contribution, and macro‑uncertainty around discretionary spend.
Overall Outlook: Moderately positive – the AI trajectory and cash strength outweigh short‑term margin compression, but investors should watch the execution of AI initiatives and any further regulatory cost headwinds.