HCLTech Q2 Net Profit Flat, Revenue Up 10.6%

New Delhi, Oct 13 (PTI) HCL Technology on Monday reported a flat consolidated net profit of Rs 4,235 crore for the quarter ended on September 30, 2025.

On a sequential basis, the IT company reported a 10.2 per cent growth compared to the net profit of Rs 3,843 crore in the June quarter of 2025-26.

The consolidated revenue of HCL Technologies increased by 10.6 per cent to Rs 31,942 crore during the reported quarter from Rs 28,862 crore a year ago, according to an exchange filing.

The company announced a move to merge variable pay of all employees into their salaries as fixed pay and roll out increments from October onwards.

HCLTech CEO and Managing Director C Vijayakumar said the auto segment business of the company continued to struggle, but the rest of the businesses are doing well.

"Our advanced AI revenue this quarter exceeded the USD 100 million (about Rs 8,763 crore) mark, representing approximately 3 per cent of our revenue. Our operating margin came in at 17.5 per cent. Our margins grew 116 basis points sequentially and are the result of the recovery plan we had shared with you last quarter. This quarter, we clocked in a booking of USD 2.6 billion, which was well balanced across service lines, geographies and verticals," Vijayakumar said.

The total contract value of deal win during the September 2025 quarter increased by 15.8 per cent to USD 2.56 billion or about Rs 22,500 crore, the company said.

Vijayakumar said that the company has for the first time crossed the USD 2.5 billion mark without any mega deal.

He said that the company will focus on developing IPR in the AI space.

HCL software revenue declined by 3.7 per cent YoY while subscription and support and professional services revenue grew by 8 per cent YoY on a constant currency basis. HCLSoftware annual recurring revenue increased by 0.6 per cent to USD 1.06 billion (about Rs 9,300 crore) on a constant currency basis.

HCLTech's US revenue, which accounts for 56.2 per cent of total business, increased by 2.4 per cent, Europe revenue by 7.6 per cent, and India business by 0.6 per cent.

Commenting on the recent H1B visa fee revision by the US, Vijayakumar said that the company has made a conscious effort to reduce reliance on visas by strategically strengthening the global delivery model.

"Overall we intend to increase our local hiring and training to enhance our localization," Vijayakumar said.

HCL Technologies maintained the revenue growth projection for the financial year 2026 in the range of 3-5 per cent on a year-over-year basis on a constant currency basis, the company said.

It also raised full fiscal services revenue guidance in the range of 4-5 per cent from 3-5 per cent projected earlier.

HCLTech Chief People Officer Ram Sundararajan announced that the company will roll out the increments, effective from October. Additionally, the decision has been made to move the quarterly variable pay to fixed pay and merge it with the fixed salary for all employees.

The company reported 3,489 net additions in headcount, taking the total employee base to 2,26,440 during the reported quarter. The total hiring by the company included 5,196 freshers.

"We started the year with a plan that we will do a significantly higher fresher addition this year compared to last year. So if you look at what we have done during the first half, that is almost 92 per cent of what we did in the entire year last year. We are on track to do what we plan to do this year in terms of fresher additions," Sundararajan said.

The company recorded a decline in attrition rate to 12.6 per cent during the reported quarter from 12.9 per cent recorded in the September 2024 quarter.