HCLTech on Monday reported a 10.2% sequential rise in its net profit to Rs 4,235 crore for the July-September quarter, driven by operational restructuring and a surge in demand for its advanced AI-led solutions. The figure was in line with Bloomberg’s estimate of Rs 4,236 crore, while the company’s revenue came in above projections at R 31,942 crore, marking a 5.2% on-quarter increase. On a year-on-year basis, net profit was flat and revenue grew by 10.7%.
Reaffirming its full-year revenue growth guidance of 3–5% in constant currency, the company raised its outlook for services revenue to 4–5% and maintained its Ebit margin guidance at 17–18% for FY26.
The IT firm attributed its performance to consistent growth across verticals and geographies, coupled with improving margins. “A standout quarter on every front marked by strong execution, growing demand for our AI-powered solutions, and Advanced AI revenue exceeding $100 million this quarter,” C Vijayakumar, CEO and MD, HCLTech, said.
The company’s operating profit rose 8.5% sequentially to Rs 6,545 crore, translating into an Ebit margin of 20.5%, compared to 19.9% in the previous quarter. This also surpassed Bloomberg’s forecast of Rs 6,442 crore. The management said the margin expansion reflected efficiency gains and higher-value deal conversions, especially within its IT and business services divisions.
HCLTech’s Advanced AI revenues contributed around 3% to the overall topline during the quarter. These offerings include custom AI solutions, partner-led agentic systems, silicon and edge AI engineering, and AI-driven product development. The company said it continues to invest in next-generation AI platforms as demand for intelligent automation and data-centric services rises globally.
The quarter saw a mixed performance across verticals. Financial services, which account for 21.7% of total revenue, grew 11.4% year-on-year in constant currency. Technology and services also saw healthy growth of 13.9%, while telecom and media rose 5.5%. However, manufacturing declined 1.8%, and life sciences and healthcare slipped 3%, largely due to client-specific transitions and portfolio realignment.
Geographically, growth was led by Europe, which expanded 7.6% year-on-year and now contributes 28.3% to total revenue. The Americas, the firm’s largest market, contributing 56.2%, grew 2.4%, while the rest of the world reported a strong 17.9% increase, now accounting for 12.4% of overall business.
CFO Shiv Walia said the company’s focus on capital efficiency continues to yield results. “We are pleased to report a last twelve month (LTM) return on invested capital (ROIC) of 38.6%, up 290 basis points year-on-year, and 45.3% for our Services business,” he said.
Bookings also touched a record high this quarter. “For the first time, our new bookings surpassed $2.5 billion without reliance on any mega-deal,” Vijayakumar said. The company signed 17 large deals worth a total contract value (TCV) of $2.26 billion, including 10 in services and seven in software. Cumulative TCV for the first half of FY26 stood at $4.33 billion.