HCLTech Reports Strong Q2 Results with Record $3.3 Billion in Orders

HCLTech Reports Strong Q2 Results

HCLTech, a leading global technology company, has revealed its financial results for the second quarter, showcasing a stellar performance driven by a record $3.3 billion in new orders. This marks a significant 27% increase year-over-year, contributing to an overall revenue rise of 2.2% to $3.7 billion, reflecting the company's solid growth trajectory.

Chief Executive Officer C. Vijayakumar expressed enthusiasm regarding the company's performance, emphasizing that all sectors and regions witnessed an upward trend in business. The EBIT margin improved by 131 basis points, now standing at 18.2%, demonstrating the efficiency and effectiveness of their operational strategies. The company also saw a notable demand in advanced AI services, with an annual revenue rate of $876 million, a substantial increase that indicates the growing market acceptance of their AI offers.

The growth in revenues was buoyed by a strong performance in IT services, which saw a 4.4% increase year-over-year at constant currency rates, along with engineering services, which grew by 2.1%. Highlights of the quarter include a remarkable increase in annual recurring revenue from HCL Software reaching $1.83 billion, and an average revenue per employee of $65,400, which is up by 2.4% from the previous year.

Regionally, the United States experienced a 3.5% increase year-over-year, while India led the charge with an astonishing 21.8% growth rate, highlighting the robust demand for technology services in emerging markets. The rest of the world also showed promising results with an 11.4% increase year-over-year, showcasing HCLTech's global appeal and market penetration.

In light of these promising figures, HCLTech has revised its revenue growth forecast for the fiscal year 2027 to between 2.5% and 4% year-over-year at constant currency rates, while also projecting service revenue growth between 3% and 4%. The company announced a dividend of 12 rupees per share, reinforcing its commitment to returning value to its shareholders.

During the second quarter of FY2027, HCLTech also hired 6,450 individuals, indicating its aggressive approach to scaling operations and expanding its workforce to meet demand. Notably, gender diversity within the company reached 30% this quarter, reflecting its ongoing commitment to improving workplace inclusivity.

A significant highlight of the quarter was HCLTech's strategic partnership with Anthropic, aiming to accelerate the adoption of agent-based AI across enterprises, with a focus on security and governance. This collaboration will enable HCLTech to develop sector-specific solutions and offerings underpinned by advanced AI technologies.

HCLTech secured several high-profile contracts this quarter, including partnerships with an American AI company for its