HCLTech Profit Jumps 21% as AI Revenue Surges 78% and Shares Lead the Nifty

Why this matters: HCLTech beat profit expectations, raised the floor of its outlook, and showed AI work is now producing measurable revenue — and investors rewarded it immediately

October 13, 2026 — HCLTech reported a 21.2% year-on-year rise in consolidated net profit to ₹5,132 crore for the July-September quarter, while revenue rose 11.5% to ₹35,620 crore, and its shares surged 7.44% on Tuesday to lead the Nifty 50.

Image: A modern IT tower at sunrise with a rising market chart and AI network above it. Credit: AI-generated illustration / Red Eye Eagle News, original illustration.

Editor's Highlight: The headline profit beat mattered, but the detail underneath mattered more. Advanced AI revenue reached $219 million, up 78% year-on-year, margins expanded, and new deal bookings rose sharply — a combination that let HCLTech raise the lower end of its full-year revenue guidance.

Table of Contents

• Profit and Revenue in the September Quarter
• AI Becomes a Real Revenue Line
• Margins and Segments
• Guidance Raised at the Bottom End
• Market Reaction on October 13
• What to Watch Next
• Bottom Line
• FAQ
• Sources

Key Facts

Detail	Information
Company	HCLTech (HCL Technologies Ltd)
Quarter reported	Q2 FY27, July-September 2026, announced October 12, 2026
Net profit	₹5,132 crore, up 21.2% YoY and about 11% QoQ
Revenue	₹35,620 crore, up 11.5% YoY and 3% QoQ
EBIT margin	18.2%, up 131 basis points QoQ
Advanced AI revenue	$219 million, up 78% YoY
New bookings	About $3.3 billion, up 27% YoY, according to the company
Dividend and share move	Interim dividend of ₹12 per share; shares up 7.44% to ₹1,314 on Oct 13

Profit and Revenue in the September Quarter

HCLTech announced the results on Monday, October 12, for the quarter ended September 30, 2026.

Net profit compared with ₹4,235 crore a year earlier and about ₹4,624 crore to ₹4,626 crore in the June quarter, depending on the reporting basis used by outlets.

Revenue compared with ₹31,942 crore a year earlier and ₹34,579 crore in the previous quarter.

Newsroom Focus: In constant-currency terms, revenue grew 2.6% year-on-year and 2.3% quarter-on-quarter. That slower constant-currency pace is the cleaner guide to underlying demand, once currency moves are stripped out.

The company described the profit, according to reports, as its highest-ever quarterly net income — a company claim.

AI Becomes a Real Revenue Line

The most closely watched figure was Advanced AI revenue of $219 million.

That total rose 78% year-on-year and 28.4% quarter-on-quarter in constant-currency terms, according to the company reports.

AI is now a separately reported revenue line, growing much faster than total revenue.

Analysis Note: Fast AI growth does not by itself prove a lasting advantage. What matters next is whether those projects convert into larger, longer services contracts, and whether margins hold as the work scales.

Management linked the growth, according to the company, to partnerships and investment across the AI stack.

Margins and Segments

EBIT reached ₹6,465 crore and the EBIT margin was 18.2%, up 131 basis points QoQ and 71 basis points YoY, even after a restructuring-cost impact noted in reports.

Segment	Signal in Q2	Detail
IT and Business Services	Grew	Revenue up 4.4% YoY in constant currency; EBIT margin 18.6%
Engineering and R&D Services	Grew	Revenue up 2.1% YoY in constant currency; margin 15.2%
HCLSoftware	Fell	Revenue down 11.2% YoY in constant currency; margin 20.1%

Services revenue overall grew 4% year-on-year in constant-currency terms, according to the reports.

Core services grew and became more profitable, while software remained the weak spot.

Practical Takeaway: If you follow only one segment next quarter, watch HCLSoftware. A continued double-digit decline would offset more of the strength in services and AI.

Guidance Raised at the Bottom End

HCLTech now expects full-year FY27 revenue growth of 2.5% to 4% in constant-currency terms.

That compares with earlier guidance of 1% to 4%. The top end did not move, but the floor rose by 1.5 percentage points.

For services, the company expects growth of 3% to 4%. Its EBIT margin guidance was kept at 17.5% to 18.5%.

New bookings supported the more confident floor. The company reported bookings of about $3.3 billion in the quarter, up 27% year-on-year, taking first-half bookings to what it described as a record high.

One outlet put the precise figure at $3,258 million.

Market Reaction on October 13

Investors reacted the next morning. On Tuesday, October 13, HCLTech was the top Nifty gainer in the session reported by The Hindu BusinessLine.

The stock rose 7.44% to ₹1,314.00, from a previous close of ₹1,223.00. It touched an intraday high around ₹1,316.40 in mid-session reporting.

The rally spread across Indian IT: TCS rose 5.86%, Tech Mahindra 4.33%, and Infosys 2.94%.

Newsroom Focus: Breadth was weaker than the indices suggested — BusinessLine reported declines outnumbered advances on the BSE. Brokerage reaction was mixed on valuation: some raised earnings estimates after the margin beat, while others stayed cautious on whether margins can be sustained.

What to Watch Next

Watch whether the raised guidance floor holds in the December quarter, and whether Advanced AI revenue grows again from $219 million.

Watch also the dividend timetable — ₹12 per share, record date October 16, 2026, payment October 26 — and attrition, reported at 12.8% for the last twelve months.

Bottom Line

HCLTech delivered a profit beat, a stronger margin, record-level bookings according to the company, and a higher guidance floor.

What to watch next is conversion: bookings becoming revenue, AI growth continuing, and software weakness not spreading.

FAQ

When did HCLTech report its Q2 FY27 results?

The company reported on Monday, October 12, 2026, for the quarter ended September 30, 2026.

How much profit and revenue did HCLTech report?

Net profit was ₹5,132 crore, up 21.2% year-on-year. Revenue was ₹35,620 crore, up 11.5% year-on-year.

Why did HCLTech shares rise on October 13?

Shares rose 7.44% to ₹1,314 after the profit and margin beat, the AI revenue jump, and the raised lower end of FY27 revenue guidance.

What is HCLTech's new FY27 guidance?

The company expects revenue growth of 2.5% to 4% in constant currency, up from 1% to 4% at the low end, and kept EBIT margin guidance at 17.5% to 18.5%.

What dividend did HCLTech declare?

An interim dividend of ₹12 per share, with a record date of October 16, 2026 and payment scheduled for October 26, 2026, according to reports.

Sources

• Upstox — HCLTech Q2 results, profit, AI revenue, guidance and dividend details: https://upstox.com/news/market-news/earnings/hcltech-q2-results-net-profit-soars-11-percent-revenue-jumps-3-percent-dividend-declared/article-201706/
• ANI via Industries News — HCLTech Q2 net profit rises over 21% YoY, segment and margin details: https://engineering.industriesnews.net/news/279368528/hcltech-q2-net-profit-rises-over-21-yoy-to-rs-5132-crore-revenue-grows-11-to-rs-35620-crore
• DataBizTimes — HCLTech Q2 profit rises 21.2%, guidance and bookings, published Oct 13: https://databiztimes.com/hcltech-q2-net-profit-rises-21-2-to-%e2%82%b95132-crore-in-fy27/
• The Hindu BusinessLine — Sensex, Nifty live updates Oct 13, HCLTech surging 7.44% to ₹1,314 as top Nifty gainer: https://www.thehindubusinessline.com/markets/sensex-nifty50-today-stock-market-live-updates-13-october-2026/article71574859.ece
• Image source — original AI-generated illustration created for Red Eye Eagle News for this article.