New deal win TCV at $1.8 billion

LONDON and NOIDA, India, July 15, 2025 /PRNewswire/ -- HCLTech (NSE: HCLTECH) (BSE: HCLTECH), a leading global technology company, reported financial results for the first quarter ended June 30, 2025. Constant currency (CC) revenue for the quarter was up 3.7% YoY. USD revenue came in at $3.55 billion, up 5.4% YoY. EBIT margin for the quarter was 16.3%.

Digital Services revenue grew by 15.2% YoY (CC) and now contributes 41.6% of the overall Services revenue. Engineering and R&D Services grew by 11.8% YoY (CC). HCLSoftware's Annual Recurring Revenue came in at $1.06 billion, up 1.3% (CC). The deal pipeline continued to be robust and diversified, with total new deal wins for the quarter at $1.8 billion.

The company announced a dividend of 12 per share for the quarter, marking the 90^th consecutive quarter of dividend payouts. For FY26, the company has upped its revenue growth guidance to 3.0%-5.0% and revised its EBIT margin guidance to 17.0%-18.0%.

"We had healthy revenue growth of 3.7% YoY, supported by good performance in our Services business with 4.5% YoY growth in constant currency. Our operating margin came at 16.3%, impacted by lower utilization and additional GenAI and GTM investments. Our AI propositions are resonating well with our clients and have been augmented further by our partnership with OpenAI. Our pipeline continues to grow as the demand environment was stable during the quarter. As the only service provider positioned as 'Customers' Choice' in all six Gartner Voice of Customer Quadrant evaluations related to IT services*, we are well positioned to grow in the AI era," said C Vijayakumar, CEO & Managing Director, HCLTech.

Industry vertical growth was led by Technology and Services at 13.7% YoY (CC), followed by Telecommunications, Media, Publishing and entertainment at 13.0% growth YoY (CC), Retail and CPG at 8.2% YoY (CC) and Financial Services at 6.8% (CC). In terms of geographies, Rest of the World grew the fastest at 15.0% YoY (CC), followed by Europe, which grew by 9.6% YoY (CC).  

The company added 1,984 freshers during the quarter and the LTM attrition was 12.8%, among the lowest in the industry.

"HCLTech Q1 FY26 INR revenue grew an impressive 8.2% YoY. Our cash generation remains robust with OCF/NI at 129% and FCF/NI at 121%, reflecting the underlying strength of our business model. Our commitment to capital efficiency has resulted in LTM ROIC improving for the company by 353 bps YoY to 38.1% and for the Services business by 236 bps YoY to 45.2%," added Shiv Walia, Chief Financial Officer, HCLTech.

HCLTech continued to be the trusted partner for global enterprises, driven by its future-ready portfolio. This quarter, the company secured several significant deals, including:

• A leading US-based hospital chain selected HCLTech to modernize and enhance its IT operations, improve efficiency and achieve better patient outcomes with HCLTech's full-stack portfolio and innovative solutions.
• A US-based global payments technology major selected HCLTech to accelerate digital transformation and enhance customer experience across its worldwide operations and product offerings, leveraging its technology-driven domain-specific solutions.
• A US-based consumer goods company has expanded its strategic partnership with HCLTech to implement SAP S/4HANA and other enterprise application services, streamlining operations and enhancing value delivery.
• A global sports body partnered with HCLTech to develop a GenAI-powered commentary enhancement platform. Built on HCLTech AI Foundry, the platform transforms live match broadcasting by dynamically analyzing live match feeds and delivering real-time, context-aware insights.

Some of the key recognitions that HCLTech received in Q1 FY26 include: 

• Among Asia's Most Honored in Extel's 2025 Executive Team rankings. Achieved 17 Top 3 rankings (across Overall, Buy-Side and Sell-Side categories) in the Technology IT Services and Software sector, out of which 9 were #1 rankings
  - Best CEO - C Vijayakumar ranked #1 in Sell-Side and #2 Overall
  - Best CFO - Shiv Walia ranked #1 across Buy-Side, Sell-Side and Overall
  - Best IR Team - HCLTech ranked #1 Buy-Side and Overall
• HCLTech Chairperson Roshni Nadar Malhotra was honored by the American India Foundation at its annual New York gala for her exceptional leadership and philanthropic impact
• Won top honors at AWS GenAI Premier League (GPL) Awards 2025: Productivity, Industry Transformation, Innovation

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Meredith Bucaro, Americas
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James Galvin, APAC
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Nitin Shukla, India
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