HCLTech Q2 profit jumps 21% to ₹5,132 crore on AI deal surge
Synopsis
HCLTech's Q2 FY27 earnings weren't just a strong quarter — they signalled a structural shift. A $1.14 billion Mercedes-Benz AI contract, 78% year-on-year growth in advanced AI revenue, and a guidance upgrade all point to HCLTech pulling ahead in the AI race among Indian IT majors, with record first-half deal bookings as the clearest proof point.
Key Takeaways
HCLTech reported a 21.2% YoY rise in net profit to ₹5,132 crore in Q2 FY27 .
Revenue from operations reached ₹35,620 crore , up 11.5% annually and 3% sequentially .
Advanced AI revenue hit $219 million , up 78% year-on-year and 28.4% sequentially .
Net new deal wins totalled $3.24 billion , including a $1.14 billion AI mega-deal from Mercedes-Benz .
FY27 revenue guidance raised to 2.5–4% from the earlier 1–4% range.
Board declared an interim dividend of ₹12 per share ; EBIT margin expanded to 18.2% .
HCL Technologies posted a 21.2 per cent year-on-year rise in consolidated net profit to ₹5,132 crore for the September quarter (Q2 FY27), powered by steady services growth, robust deal wins, and accelerating demand for artificial intelligence-led solutions. On a sequential basis, the Noida-headquartered IT major recorded an 11 per cent jump from the ₹4,626 crore logged in the preceding June quarter.
Revenue and Margin Performance
Revenue from operations for the quarter stood at ₹35,620 crore, up 3 per cent sequentially from ₹34,579 crore in Q1 FY27, and 11.5 per cent higher on an annual basis. Operating efficiency also improved, with EBIT margin expanding to 18.2 per cent — a gain of 131 basis points quarter-on-quarter and 71 basis points year-on-year — supported by cost discipline and broad-based growth across business segments.
AI Revenue Accelerates Sharply
A defining highlight of the quarter was the continued momentum in artificial intelligence. HCLTech's advanced AI revenue reached $219 million, surging 28.4 per cent over the previous quarter and 78 per cent compared to the year-ago period. The company secured a landmark $1.14 billion AI contract from Mercedes-Benz, its single largest such deal, which anchored net new deal wins of $3.24 billion. Total new bookings climbed 27 per cent year-on-year to approximately $3.3 billion, taking first-half bookings to a record level.
Guidance Raised, Dividend Declared
Buoyed by the strong performance, HCLTech raised the lower end of its FY27 revenue growth guidance to 2.5–4 per cent, up from the earlier range of 1–4 per cent. The company retained its operating margin guidance at 17.5–18.5 per cent for the full year. The board also declared an interim dividend of ₹12 per share for shareholders.
What Leadership Said
C Vijayakumar, Chief Executive Officer and Managing Director of HCLTech, said the company delivered a strong quarter with growth across geographies and verticals, noting that advanced AI offerings continued to attract strong client traction. 'Our AI propositions are resonating well with our clients, giving us confidence in our growth trajectory,' he said.
HCLTech Chairperson Roshni Nadar Malhotra said the accelerating growth in advanced AI revenue validates the company's strategy and investments across the AI technology stack. 'Through strategic partnerships and continued investments across the full AI stack, HCLTech is well-positioned to be a trusted technology partner for enterprises and governments globally,' she added.
Context and What Comes Next
The results come at a time when Indian IT firms face mixed signals — cautious enterprise spending in traditional segments on one hand, and a sharp uptick in AI-driven transformation budgets on the other. HCLTech's ability to convert AI pipeline into a record-breaking deal book sets it apart heading into the second half of FY27. Notably, this is the highest quarterly net profit the company has reported, and the Mercedes-Benz mega deal positions it for sustained AI revenue growth into FY28. Investors and analysts will next watch for guidance updates at the Q3 earnings call and any further mega-deal announcements.
Point of View
But the real story is the AI deal engine — a $1.14 billion single contract from Mercedes-Benz is not a routine win, and 78% year-on-year advanced AI revenue growth is a structural signal, not a blip. The guidance upgrade, while modest, matters because it bucks the cautious tone that has defined FY27 IT commentary so far. The risk, however, is concentration: mega-deals with long execution cycles can mask slower growth in the core services book. The next two quarters will reveal whether HCLTech's AI pipeline converts broadly, or whether one headline deal is doing most of the heavy lifting.
NationPress
12 Oct 2026
Frequently Asked Questions
What were HCLTech's Q2 FY27 earnings results?
HCL Technologies reported a 21.2% year-on-year increase in consolidated net profit to ₹5,132 crore for Q2 FY27 (July–September 2026). Revenue from operations grew 11.5% annually to ₹35,620 crore, while EBIT margin expanded to 18.2%.
What is the Mercedes-Benz AI deal that HCLTech announced?
HCLTech secured a $1.14 billion artificial intelligence contract from Mercedes-Benz during Q2 FY27, making it one of the largest single AI deals in the company's history. The deal was a key driver of net new deal wins of $3.24 billion for the quarter.
Why did HCLTech raise its FY27 revenue guidance?
HCLTech raised the lower end of its FY27 revenue growth guidance to 2.5–4% from the earlier 1–4%, citing strong deal momentum, record first-half bookings, and accelerating client demand for AI-led services. Operating margin guidance was retained at 17.5–18.5%.
How fast is HCLTech's AI revenue growing?
HCLTech's advanced AI revenue reached $219 million in Q2 FY27, growing 78% year-on-year and 28.4% sequentially. Company leadership attributed the momentum to resonating AI propositions and strategic investments across the full AI technology stack.
What dividend did HCLTech declare for Q2 FY27?
HCLTech's board declared an interim dividend of ₹12 per share for Q2 FY27. The announcement accompanied the quarterly earnings release filed with the stock exchanges.
