HCL Technologies Posts Robust Profit Growth on Improved Margins
HCLTech's Q1 profit jumped 20.3% year-on-year, significantly outpacing revenue growth as net profit margin expanded.
HCL Technologies reported strong Q1 FY27 earnings, with profit growth of 20.3% YoY exceeding revenue growth. The company's net profit margin improved to 13.4%.
HCL Technologies started its new fiscal year with a strong earnings performance, delivering robust profit growth that comfortably outpaced its revenue increase. The company's net profit margin expanded, indicating improved operational efficiency and profitability.
Revenue for the quarter ended June 2026 grew 13.9% year-on-year to ₹34,579 crore. Profit after tax saw an even stronger surge, rising 20.3% to ₹4,626 crore. This profit growth was supported by a 70 basis point expansion in the net profit margin, which reached 13.4% compared to 12.7% in the same quarter last year. Sequentially, both revenue and profit continued their upward trajectory, growing 1.8% and 3.0% respectively from the March quarter.
The company's performance over the last five quarters shows a clear trend of consistent growth and margin improvement.
Revenue (₹ cr)
Profit (₹ cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period Ended | June 2026 | March 2026 | June 2025 |
| Revenue (₹ cr) | 34,579YoY +14% | 33,981 | 30,349 |
| Profit (₹ cr) | 4,626YoY +20% | 4,490 | 3,844 |
| Net Profit Margin (%) | 13.4YoY +5.5% | 13.2 | 12.7 |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 13.0%, with TTM profit at ₹17,434 crore.
- The company maintains a strong balance sheet with zero debt and a robust return on equity of 23.13%.
- Over the past year, the stock price has declined 8.7%, while the three-year return shows a 16.1% gain, translating to a 5.1% annualized return.
Despite the recent stock price pressure, HCLTech's latest earnings demonstrate a healthy underlying business with expanding profitability. The current valuation reflects a premium to the industry, trading at a P/E of 21.9 compared to the sector average of 18.7.
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· HCLTECH
(BSE)
ISIN: INE860A01027
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