HCLTech reported its financial results for the quarter ended June 30, 2025, showing a 3.7% year-over-year increase in revenue (constant currency), with total revenue in USD reaching $3.55 billion—up 5.4% from the same quarter last year. The operating margin (EBIT) stood at 16.3%.
Digital Services continued to be a major growth driver, recording a 15.2% YoY rise in revenue (CC) and accounting for 41.6% of total Services revenue. Engineering and R&D Services followed closely, growing by 11.8% YoY (CC). HCLSoftware’s annual recurring revenue reached $1.06 billion, showing a modest 1.3% increase (CC). New deal wins remained strong, totaling $1.8 billion for the quarter.
The board declared a ₹12 per share dividend, maintaining the company’s long-standing track record of uninterrupted payouts for 90 consecutive quarters. Revenue growth guidance for FY26 was raised to 3.0%-5.0%, while the EBIT margin forecast was updated to a range of 17.0%–18.0%.
CEO & MD C Vijayakumar commented, “Our 3.7% growth in constant currency reflects healthy demand, particularly in our Services segment, which saw 4.5% growth. While investments in advanced technologies and go-to-market initiatives impacted margins slightly, client interest in our AI-driven offerings remains strong. Our deal pipeline remains healthy, and we continue to be recognized for our client-centric delivery.”
The Technology and Services sector led industry vertical growth at 13.7% YoY (CC), followed by strong momentum in Telecommunications, Media & Entertainment at 13.0%, Retail & Consumer Packaged Goods at 8.2%, and Financial Services at 6.8%. Geographically, the Rest of the World region saw the highest growth at 15.0% YoY (CC), followed by Europe with a 9.6% YoY increase.
The company added 1,984 freshers during the quarter. The last twelve months’ attrition stood at 12.8%, among the lowest across the sector.
CFO Shiv Walia added, “Our INR revenue for Q1 FY26 rose 8.2% YoY, supported by strong cash conversion. Operating cash flow stood at 129% of net income, while free cash flow reached 121%—highlighting our focus on financial discipline. Our return on invested capital also improved significantly.”
In the first quarter of FY26, HCLTech secured several high-value strategic engagements across industries, reflecting its growing influence as a technology partner of choice. One of the most notable wins was with a leading U.S. hospital network, which selected HCLTech to upgrade its IT infrastructure. The initiative is aimed at enhancing operational efficiency and delivering better patient outcomes by leveraging cutting-edge digital solutions and automation.
Another significant partnership was formed with a global payments technology company. This collaboration is focused on accelerating the client’s digital transformation efforts and elevating the user experience across its global platforms. HCLTech’s role involves deploying scalable, domain-specific solutions that drive agility and customer satisfaction in an increasingly competitive market.
The company also expanded its long-standing relationship with a major consumer goods enterprise. This renewed engagement includes the implementation of SAP S/4HANA and a suite of enterprise applications designed to streamline business operations and enhance value delivery. The partnership underscores HCLTech’s strength in large-scale ERP deployments and business transformation services.
In the media and sports domain, HCLTech joined forces with an international sports body to co-create an AI-powered platform that enhances live match commentary. Built using the company’s proprietary AI framework, the solution delivers real-time, context-aware insights to enrich broadcasting and viewer engagement. This collaboration marks a bold step forward in applying advanced technologies to sports media and fan experience.
Beyond its commercial success, HCLTech was recognized with several prestigious industry accolades. It earned a place among Asia’s Most Honored companies in Extel’s 2025 Executive Team rankings, with top positions in multiple leadership and investor relations categories. CEO C Vijayakumar and CFO Shiv Walia both secured #1 rankings, while the Investor Relations team topped the Buy-Side and Overall categories.
Additionally, Chairperson Roshni Nadar Malhotra was celebrated by the American India Foundation for her leadership and philanthropic contributions. The company also took home top honors at the AWS GenAI Premier League Awards 2025 for its achievements in innovation, productivity, and industry transformation.
Headquartered in India, HCLTech employs over 223,000 professionals across 60 countries, delivering services in digital engineering, cloud platforms, and artificial intelligence. Its client base spans key industries including financial services, manufacturing, healthcare, semiconductors, telecom, retail, and the public sector. As of the 12-month period ending March 2025, HCLTech reported consolidated revenues of $13.8 billion.
