HCL Technologies reported Q1 FY27 revenue of ₹34,579 crore and record Q1 bookings of $2,407 million. Advanced AI revenue reached $171 million. The company declared a ₹12 per share dividend.
HCL Technologies Reports Strong Q1 FY27 with Record Bookings
Revenue ₹34,579 Crore; Net Income ₹4,624 Crore.
Reader Takeaway: Strong deal wins and AI growth boost performance, but restructuring costs pressure margins.
What just happened
HCL Technologies announced its financial results for the first quarter of FY27 (ending June 30, 2026). The company reported revenue of ₹34,579 crore, an increase from ₹33,981 crore in the previous quarter and ₹30,349 crore in the same quarter last year. Net income for the quarter stood at ₹4,624 crore, up from ₹4,488 crore in Q4 FY26. The company also secured a record-breaking ₹2,407 million in net-new bookings for Q1.
Why this matters
The strong revenue growth and record bookings indicate healthy demand for HCL Technologies' services, particularly in AI-led transformation. The positive performance in its Advanced AI business, which generated $171 million in revenue, highlights the company's focus on high-growth areas. The declared dividend of ₹12 per share offers a direct return to shareholders.
The backstory
In Q1 FY27, HCL Technologies achieved its highest-ever Q1 net-new bookings, reaching $2,407 million, driven by strong client demand for AI-led transformation. The Advanced AI business saw a 62.1% year-over-year increase in constant currency. The company's employee base was 223,889 as of June 30, 2026.
What changes now
While the company delivered a steady performance, the reported EBIT margin of 16.9% was impacted by restructuring costs of 62 basis points at the EBIT level and 47 basis points at the Net Income level. Management's guidance for FY27 projects company revenue growth between 1.0% - 4.0% YoY in constant currency and services growth between 1.5% - 4.5% YoY, with an expected EBIT margin of 17.5% - 18.5%.
Risks to watch
Investors should monitor the impact of restructuring costs on profitability and track whether these costs are transitional. The company needs to achieve its FY27 revenue growth guidance amidst evolving market dynamics.
Peer comparison
(No specific peer comparison data available in the filing).
Context metrics (time-bound)
- Revenue (₹ Cr): Q1 FY27: 34,579; Q4 FY26: 33,981; Q1 FY26: 30,349
- Net Income (₹ Cr): Q1 FY27: 4,624; Q4 FY26: 4,488; Q1 FY26: 3,843
- EBIT Margin: Q1 FY27: 16.9%
- Net-New Bookings (Q1): $2,407 Million (Record)
- Advanced AI Revenue: $171 Million
- Dividend: ₹12 per share
What to track next
Investors will be keen to see how HCL Technologies manages its margins in the upcoming quarters, especially concerning the impact of restructuring costs, and its progress towards meeting the FY27 revenue growth and EBIT margin guidance.