HCL Tech Q1 results, dividend today: Earnings preview, payout history; key things to watch

HCL Technologies Ltd, the third largest sofwar exporter, is all set to declare its June quarter results on Monday after closing of market hours. The Noida-based company's board would also consider declaration of a second interim dividend for the financial year today. Analysts are largely expecting the IT major to report double-digit year-on-year (YoY) growth in net sales and net profit for the June quarter, with a marginal rise in margin. FY27 guidance is likely to be maintained, analyst said. 

The senior management of HCL Technologies will conduct an audio conference call at 7:30 pm later in the day.  

HCL Tech Q1 results preview 

YES Securities said HCL Technologies may post Q1 revenue of Rs 34,050 crore, a growth of 12.2 per cent YoY and 0.2 per cent QoQ. In constant currency (CC) terms, growth is projected at 2.5 per cent YoY and minus 0.6 per cent QoQ. Ebitda is estimated at Rs 7,150 crore, up 18.5 per cent YoY and 6.5 per cent QoQ, with margins expected at 21 per cent. "PAT is projected at Rs 4,480 crore, implying growth of 16.6 per cent YoY and a marginal decline of 0.2 per cent QoQ.

Nuvama Institutional Equities sees Q1 net profit for HCL Tech to rise 19.8 per cent YoY to Rs 4,604 crore on 13.4 per cent YoY rise in sales at Rs 34,401 crore. Ebit margin is seen at 16.9 per cent, up 60 basis points YoY.

HCL Tech may maintain FY27 guidance
Nuvama expects HCL Tech to maintain its FY27 guidance of 1.5-4.5 per cent CC revenue growth in the Services business and an operating margin guidance of 17.5-18.5 per cent. Kotak Institutional Equities also sees HCL Tech maintaining its FY27 guidance. The hurdle rate to achieve lower end and upper end of guidance stands at 0.7-2.7 per cent from 2Q-4QFY27E, it noted.

HCL Tech dividend history

Key things to watch
Kotak said investor focus is likely to remain on the revenue mix and growth from AI-amplified and AI-native services. It expects investors to closely track the extent of deflation in AI-disrupted services, pricing pressure in the core business and the consequent impact on margins, along with factors that could accelerate growth.

The brokerage added that commentary on profitability and execution discipline in cost takeout and vendor consolidation deals, as well as HCL Tech's ability to generate new AI-led revenue streams to offset deflation, would be closely watched, particularly given its higher exposure to relatively less AI-impacted infrastructure services.