HCLTECH Q2 FY26 Results 2025: A Strong Quarter Fueled by AI, Services, and Steady Execution
Quick Snapshot
| Metric | Q2 FY26 | QoQ | YoY |
| Revenue | ₹31,942 Cr | +5.2% | +10.7% |
| EBIT | ₹5,550 Cr (17.4% margin) | +12.3% | +3.5% |
| Net Income | ₹4,235 Cr | +10.2% | Flat |
| Free Cash Flow / Net Income | 125% | — | — |
| Dividend | ₹12 per share | — | 91st consecutive payout |
HCLTECH Q2 FY26 Results: A Quarter of Steady Growth
HCLTECH Q2 FY26 results paint a picture of resilience and focus. Despite global uncertainty in IT spending, the company managed double-digit revenue growth year-on-year, powered by its AI-led transformation strategy and solid Services performance.
“A standout quarter on every front — marked by strong execution, growing demand for our AI-powered solutions, and Advanced AI revenue exceeding $100M this quarter,”
— C. Vijayakumar, CEO & MD, HCLTech
Revenue and Segment Performance
HCLTech’s revenue hit ₹31,942 crore, up 5.2% QoQ and 10.7% YoY in rupee terms.
In constant currency (CC), that’s a 2.4% sequential and 4.6% annual rise — a healthy sign given global macro softness.
- Services Revenue: +5.5% YoY CC
- Digital Revenue: +15% YoY, contributing 42% of overall services
- Engineering & R&D (ER&D): +13.4% YoY
- HCLSoftware: Slight dip of 3.7% YoY, but steady subscription & support growth of 8%
For the first time, HCLTech’s “Advanced AI” segment crossed the $100 million quarterly mark — a major milestone in its AI growth roadmap.
Profitability and Margins: Efficiency on Display
HCLTech’s EBIT for Q2 FY26 stood at ₹5,550 crore, reflecting a 17.4% margin, even after accounting for a 55 bps restructuring cost.
Net income came in at ₹4,235 crore, showing a 10.2% sequential rise, supported by disciplined cost control and improved operational efficiency.
Key Financial Ratios:
- ROIC (LTM): 38.6% (up 290 bps YoY)
- ROIC for Services: 45.3%
- Free Cash Flow (FCF) to Net Income: 125%
HCLTech also declared an interim dividend of ₹12 per share, continuing its 91-quarter streak of consistent shareholder rewards.
Deal Wins and Bookings: Growth Without Mega Deals
The company reported Total Contract Value (TCV) of $2,569 million in new deal wins —
up 41.8% QoQ and 15.8% YoY.
Notably, this growth did not rely on any mega-deal, underscoring HCLTech’s strong mid-market traction.
Client Metrics
- $100M+ clients: 22
- $50M+ clients: 54
- $20M+ clients: 151 (up by 14 YoY)
- DSO improved to 56 days, showing tighter cash discipline.
People First: Talent and Culture at the Core
HCLTech’s total headcount reached 226,640, with a net addition of 3,489 employees.
The company also welcomed 5,196 freshers in Q2 FY26.
Attrition continued its downward trend, standing at 12.6%, compared to 12.9% last year — a clear sign of improved retention and engagement.
“Upskilling our global talent base remains a key enabler of innovation for our clients,”
— Roshni Nadar Malhotra, Chairperson, HCLTech
The AI Momentum: From Hype to Business Reality
Artificial Intelligence isn’t just a buzzword at HCLTech — it’s turning into real business impact.
The company’s AI Force platform combines GenAI, Agentic AI, Robotics, and AI Engineering to help clients modernize faster.
Notable AI-Driven Wins
- A US-based power management firm set up AI labs with HCLTech to improve operational resilience.
- An aerospace major chose HCLTech to build simulation software using Physical AI frameworks.
- An Australian transport authority adopted HCLTech’s computer vision-based AI solution for real-time waterway safety.
These examples show how AI is becoming a core revenue stream, not just an experiment.
Outlook: Guidance for FY26
HCLTech maintained a steady outlook for the year ahead, signaling confidence in sustained demand.
| Metric | FY26 Guidance |
| Revenue Growth (CC) | 3.0% – 5.0% |
| Services Growth (CC) | 4.0% – 5.0% |
| EBIT Margin | 17.0% – 18.0% |
The management reiterated its focus on AI-driven services, efficiency, and capital discipline as key pillars for FY26.
Final Thoughts
The HCLTECH Q2 FY26 Results reflect a company that’s evolving smartly — balancing innovation with execution.
While competitors chase growth amid uncertainty, HCLTech’s consistency stands out.
Strong revenue growth, record AI earnings, solid cash generation, and a focus on people make HCLTech one of India’s most dependable tech giants heading into 2026.
“We remain committed to improving capital efficiency and delivering sustainable growth,”
— Shiv Walia, CFO, HCLTech
Key Takeaway
HCLTech’s Q2 FY26 performance reaffirms its status as a steady compounder — powered by AI, strengthened by services, and grounded in execution.
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