HCL Technologies shares fell by 2.21% to trade at ₹1,339.60 on Wednesday afternoon, according to latest reports from Moneycontrol.com. The stock's performance places it among the notable gainers among NIFTY 50 index constituents, despite the day's decline. The stock's current trading price of ₹1,339.60 reflects a 2.21% decline from its previous close, with the stock being a component of the NIFTY 50 index. However, the stock fell immediately after the Q1 FY27 results due to the company maintaining its unchanged FY27 revenue guidance despite posting impressive quarterly numbers.
According to latest reports, HCL Technologies reported consolidated quarterly results with consistent growth in revenue and net profit over the past year. Revenue for the quarter-ending June 2026 stood at ₹34,579 crore, an increase from ₹33,981 crore in March 2026 and ₹30,349 crore in June 2025. Similarly, net profit increased to ₹4,626 crore in June 2026, up from ₹4,490 crore in March 2026 and ₹3,844 crore in June 2025. The company achieved YoY growth of 13.9% in revenues and 20.3% in net profit in Q1 FY27. The advanced AI segment contributed US$171 million in revenue, marking a 62.1% year-over-year growth in constant currency. The Financial Services vertical became the largest growth driver with increased spend from banks and financial organizations on cloud migration, digital transformation, cybersecurity, AI-driven customer experience, and regulatory technology solutions.
One of the most notable highlights from the quarter was the new record Q1 TCV bookings at US$2.4 billion, which is the highest-ever bookings recorded by the company in its first quarter, indicating a good demand environment despite cautious discretionary spend across geographies. The company announced entry into the business of AI Data Centers by making an investment of about ₹3,500 crores for the time being and expanding the capacity of AI data center to around 50MW. This strategic decision is expected to strengthen the company's ability in AI infrastructure, though it represents a long-term investment that may affect cash flow. The company maintained its guidance for revenue growth of 1%–4% in FY27 on a constant currency basis, with Services revenue growth ranging from 1.5%–4.5% and EBIT margins guided at 17.5%–18.5%.
According to latest reports, the company stayed on track in its efforts towards efficiency during the quarter. Despite some cutback in workforce owing to certain optimization exercises undertaken by the firm, profit margins increased due to improved utilization of resources, effective cost control, and favourable business mix. The EBIT margin increased to 16.9%, despite the restructuring costs incurred by the firm during the period. The company has managed to keep its Free Cash Flow to Net Income ratio quite high at 99% for the past year, suggesting strong cash flow management. The ROIC was greater than 40%, indicating efficient capital utilization. The company declared an interim dividend of ₹12.00 per share (600%) with an effective date of July 17, 2026.
As reported by Moneycontrol.com, key financial ratios indicate a healthy financial position. The Return on Networth (ROE) was 22.14% in March 2026. Valuation ratios show a P/E of 21.83x and a P/B of 4.84x for March 2026. The company also has a history of bonus issues, with a 1:1 bonus ratio announced on October 23, 2019, March 30, 2015, and December 14, 2006. A stock split from a face value of ₹4 to ₹2 was effective on November 27, 2000. Despite being disappointed by the unchanged FY27 guidance, the company showed great results in all essential financial metrics, with revenue growth surpassing expectations, significant improvement in profitability, and deal bookings reaching record highs indicating good visibility for demand. The company's strategic focus on AI data centers enhances its positioning for the next phase of enterprise AI adoption.
