HCL Technologies Q2 FY27 Results Analysis: PAT Jumps 21%, Revenue Hits Record High (HCLTECH)
HCL Technologies Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 35,620.00 Cr (+11.51% YoY) and PAT growth of +21.15% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 12, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 35,620.00 Cr (+11.51% YoY) |
| PAT (Q2) | Rs. 5,132.00 Cr (+21.15% YoY) |
| EBITDA margin | 20.88% (+39 bps YoY) |
| EPS (Q2) | Rs. 18.96 (+21.30% YoY) |
| Market cap | Rs. 328,814.79 Cr |
| CMP | Rs. 1,211.70 |
Quarter Snapshot
Revenue from operations rose 11.51% YoY to Rs.35,620 Cr, the highest quarterly print in HCLTECH's history, with segment EBIT margin expanding 129 bps QoQ to 18.15% — the middle of management's 17.5–18.5% FY27 guidance band. PAT grew 21.15% YoY to Rs.5,132 Cr, helped by an ETR decline to 20.64% from 25.71%, while IT & Business Services delivered 13.70% YoY revenue growth with margins up 237 bps YoY. HCL Software (revenue -4.14% YoY, margin -653 bps YoY) and ER&D (margin -226 bps YoY) remain the drag segments as the subscription transition and US telco cuts play out.
Key Investment Insights
Key Positives
- Revenue from operations reached Rs.35,620 Cr, the highest quarterly print in HCLTECH's history, up 3.01% QoQ and 11.51% YoY — fifth consecutive quarter of sequential growth
- Segment EBIT margin expanded 129 bps QoQ to 18.15% and 77 bps YoY, within the FY27 guidance band of 17.5–18.5%
- PAT grew 21.15% YoY to Rs.5,132 Cr; diluted EPS rose to Rs.18.93 from Rs.15.61
- IT & Business Services revenue grew 13.70% YoY with EBIT margin up 237 bps YoY to 18.54%, the highest in at least four quarters
- $1.14B mega deal signed Jul 3 contributed partial-quarter revenue; three acquisitions (Jaspersoft, Guardian India Operations, HPE Telco Solutions) closed for Rs.3,635 Cr
- Employee costs grew 0.69% QoQ against 3.01% QoQ revenue growth; total expenses grew 10.11% YoY vs 11.51% revenue growth
- Borrowings of Rs.954 Cr against net worth of Rs.76,092 Cr (D/E 0.0125x) with cash and cash equivalents of Rs.10,046 Cr
- H1FY27 PAT of Rs.9,758 Cr is already 58.6% of FY26 full-year PAT of Rs.16,652 Cr
Risk Factors
- HCL Software revenue declined 4.14% YoY and 4.61% QoQ to Rs.2,709 Cr, with segment EBIT margin down 653 bps YoY to 20.86% amid the subscription transition
- ER&D EBIT margin compressed 226 bps YoY to 15.15% and fell QoQ from 15.61%, reflecting the two US telco discretionary cuts
- Finance costs more than doubled QoQ to Rs.194 Cr (+130.95%) on acquisition-related borrowings; outsourcing costs rose 19.42% YoY to 15.00% of revenue
- H1 CFO/PAT of 0.79x (vs 1.19x in H1FY26) on working capital deployment for the mega deal ramp-up
- Q2 ETR of 20.64% vs 25.71% YoY — part of the 21.15% PAT growth is tax-rate driven
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.