HCLTech reported its Q1 FY26 results with mixed signals.
The company posted a consolidated net profit of ₹3,843 crore, marking a 9.7% decline YoY from ₹4,257 crore in Q1 FY25, and a 10.7% drop QoQ from ₹4,307 crore in Q4 FY25.
The decline was attributed to lower utilization, client-specific ramp-downs, and a one-time impact from a client bankruptcy.
However, revenue from operations rose 8.1% YoY to ₹30,349 crore from ₹28,057 crore in Q1 FY25, and was marginally up QoQ from ₹30,263 crore in Q4 FY25.
Growth was driven by strong performance in technology and services (13.7%), telecom and media (13%), and retail and CPG (8.2%).
The EBIT margin fell to 16.3%, down from 17.1% in Q1 FY25 and 17.5% in Q4 FY25, prompting the company to revise its FY26 margin guidance to 17–18%, down from 18–19%.
Headcount and Attrition
HCLTech’s total headcount stood at 223,151, down by 269 employees QoQ from 223,420 in Q4 FY25.
Despite the dip, the company added 1,984 freshers in Q1 FY26 and plans a significantly higher YoY intake in the current quarter.
The hiring strategy is shifting toward specialized freshers, with compensation levels 3–4x higher than regular hires.
This elite cadre is expected to strengthen capabilities in GenAI and advanced tech services, aligning with the company’s transformation goals.
Attrition figures for Q1 FY26 were not explicitly disclosed, but the company emphasized retention through specialization and upskilling, especially in AI-related roles.
HCLTech New Partnerships and GenAI Investments
HCLTech continued its aggressive push into Generative AI, with 127,000 employees trained in foundational AI and 42,000 certified in advanced GenAI.
Of these, 12,000 are active GenAI practitioners, working on client projects.
The company also announced a strategic partnership with OpenAI, aimed at enhancing its AI-driven data lifecycle management platform.
These initiatives will drive long-term productivity gains and client engagement.
Outlook and Hiring Commentary
CEO C Vijayakumar acknowledged that Q1 has historically been a weak quarter for the company.
He expressed optimism for FY26, highlighting stable macro conditions and strong deal momentum.
The company raised its revenue growth guidance to 3–5%, up from 2–5%.
Chief People Officer Ram Sundararajan emphasized that hiring will focus on quality over quantity, with a preference for specialized talent.
HCLTech plans to build elite engineering cohorts to strengthen its AI and software divisions.
These specialized freshers will receive compensation packages up to four times higher than standard campus hires.
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