1QFY27 First Cut: Results ahead of estimates; Strong bookings

研报英文原文证据摘录

1QFY27 First Cut: Results ahead of estimates; Strong bookings

India | Computer Services & IT Consulting

HCL Technologies EquityJulyResearch13, 2026

FLASH NOTE1QFY27 First Cut: Results ahead of estimates;

RATING UNDERPERFORMStrong bookings

PRICE INR1,162.65^

HCLT's Jun-26 results beat estimates with revenues down 0.5% QoQcc and

profits up 20% YoY both ahead of estimates. HCLT has maintained its FY27 PRICE TARGET | % TO PT INR1,165 | +0%

growth guidance which implies a 0.5%-2.5% CQGR in services over the rest 52W HIGH-LOW INR1,770.00 - INR1,030.00

of FY27. FY27 margin guidance is unchanged at 17.5-18.5%. Deal wins, up FLOAT (%) | ADV MM (USD) 38.7% | 57.57

33% YoY were strong though headcount declined. More after the call at 7:30 MARKET CAP INR3.2T | $33.1B

PM IST. TICKER HCLT IN ^Prior trading day's closing price unless otherwise

noted.

All round beat: HCLT's Jun-26 (1QFY27) revenues at US$3.65bn, down 0.5% QoQcc, beat

estimates. EBIT margins at 16.9%, up 40bps QoQ was largely in line with estimates. Profits at

Rs46bn, up 20% YoY, also beat estimates due to the beat on operating performance.

IT&BS and Software segment drive revenue beat: Revenues from IT&BS segment (0% QoQcc)

were ahead of our expectations, however revenues from ER&D segment (-3.7% QoQcc) missed

estimates. Revenues from Software segment up 2.2% QoQcc were also ahead of estimates.

Among verticals, growth in Retail (+5.8% QoQcc) and BFS (+2.4% QoQcc) partly offset the

decline in Telecom (-7.8% QoQcc - annual reduction in a large client) and Tech vertical (-3%

QoQcc). Growth was broad based with all verticals barring Financial services (furloughs) and

telecom reporting QoQcc growth.

IT&BS segment drives margin expansion: HCLT's c.40bps QoQ margin expansion was entirely