HCLTech Surpasses Expectations with 11% Net Profit Growth in Q2 FY25

HCLTech has released its financial results for the second quarter of FY25, revealing a remarkable 11% increase in net profit, which now stands at ₹4,235 crore. This growth has outperformed market expectations and showcases the company’s robust operational performance. During the July to September 2025 period, HCLTech’s revenue from operations climbed to ₹28,862 crore, reflecting an 8.2% year-on-year growth.

While the net profit saw a slight sequential decline of 0.5%, revenue increased by approximately 3% quarter-on-quarter. The company's EBIT margin for the quarter improved to 18.6%, a gain of 149 basis points sequentially. This performance underscores HCLTech's effective management and ability to navigate the evolving IT landscape.

Market analysts had predicted a more conservative revenue growth of 1.6% quarter-on-quarter, estimating the revenue to reach around ₹28,517 crore, with profit after tax (PAT) expected to drop 5.5% to ₹4,024 crore. However, HCLTech surpassed these projections across all major financial metrics, demonstrating its resilience and strategic foresight.

In response to its impressive performance, HCLTech has adjusted its revenue growth guidance for the full fiscal year. The company has increased the lower end of its guidance by 50 basis points, now projecting revenue growth of 3.5-5% in constant currency terms. Additionally, HCLTech has maintained its EBIT margin guidance between 18-19% for FY25.

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C Vijayakumar, CEO and Managing Director of HCLTech, highlighted the strong quarterly results, noting the diverse growth across various verticals, geographies, and service offerings. He emphasized the exceptional performance of HCL Software, which recorded a 9.4% year-on-year growth this quarter and 6.4% in the first half of FY25, indicating the increasing importance of its products in the digital economy.

The company's growth is supported by a robust pipeline that includes initiatives in Data & AI, Digital Engineering, and SAP migration. HCLTech's GenAI offerings, such as AI Force and AI Foundry, have been particularly well-received by clients, suggesting they will be key drivers of future efficiency, growth, and innovation.

In terms of new business, HCLTech reported net new deal wins of $2.21 billion for Q2, an increase from $1.96 billion in the previous quarter. This growth in new contracts reflects the company's strong market position and ongoing demand for its services.

HCLTech also announced an interim dividend of ₹12 per share, raising the total interim dividend for the fiscal year to ₹42 per share. Earlier, the company had declared an interim dividend of ₹18 per share in May and ₹12 per share in July. This consistent return of capital to shareholders illustrates HCLTech's commitment to delivering value to its investors.

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In summary, HCLTech's strong financial performance in Q2 FY25 showcases its ability to adapt to market challenges and capitalize on growth opportunities. With a strategic focus on innovation and a solid pipeline of projects, the company is well-positioned to maintain its upward trajectory in the coming quarters.