HCLTech reports FY2026 revenue up 11% as AI drives growth

– HCLTech posted solid top‑line growth in FY2026, buoyed by AI‑related revenue, while profitability held steady despite modest pressure on margins and a dip in software earnings.

• Revenue: ₹130,144 cr (+11.2% YoY) / $14,664 m (+6% YoY); constant‑currency revenue up 3.9%.
• Net Income: ₹17,361 cr (13.3% of revenue, down 0.2% YoY); diluted EPS ₹64.01.
• EBIT: ₹22,397 cr, representing 17.2% of revenue (up 4.6% YoY); EBIT margin excluding restructuring 17.9%.
• Operating Margins: Overall EBIT margin rose, but the core IT & Business Services segment saw margin compression (EBIT margin fell to 16.3% YoY).
• AI Momentum: Annualized AI revenue hit $620 m, with a 6% QoQ rise in Q4, driven by multiple $100 m+ AI‑factory and AI‑engineering contracts.
• Software Segment: HCLSoftware revenue down 14.1% YoY, ARR flat at $1.05 bn, reflecting a shift to subscription models.
• Cash Generation: Free‑cash‑flow‑to‑NI 107%; operating cash flow to NI 115%, underscoring strong cash conversion.
• Dividend: FY26 dividend ₹60 per share (97.6% payout) plus ₹24 per share for Q4.
• ROIC: Company‑wide 40.3% (+235 bps YoY); Services 47.0% (+155 bps YoY).

Key Operational Highlights

• Headcount grew to 227,181 (+3,761 YoY) with attrition improving to 12.5%; added 11,744 freshers to support AI‑centric delivery.
• Launched AI Force 2.0, VisionX 2.0, and secured collaborations with NVIDIA, Google Gemini, AWS, and MIT Media Lab.
• Recognized in Fortune’s World’s Most Admired Companies 2026 and other ESG rankings.

Management Guidance (FY27)

• Revenue growth: Expected 1‑4% YoY in constant currency (services 1.5‑4.5% CC).
• EBIT margin target: 17.5‑18.5%.

Risks highlighted include slower discretionary spend, softness in the software segment, and potential regulatory cost surprises.