HCLTech Secures UK Modernisation Deal; Q1 FY27 Profit Rises 20%

Quick Summary

HCLTech's latest business update includes a UK IT modernisation deal, while its September-quarter results approach. The company entered FY27 with double-digit revenue and profit growth, record deal wins and strong Advanced AI growth, alongside investments in AI and semiconductor capabilities.

HCLTech remains in focus after securing a new IT modernisation mandate from UK-based infrastructure services provider M Group. The development comes as the company prepares to announce its September-quarter results and follows a strong Q1 FY27 performance.

HCLTech reported 13.94% year-on-year growth in revenue from operations during Q1 FY27, while consolidated profit for the period increased 20.34% YoY. The company also recorded its highest-ever Q1 net new deal bookings of $2.4 billion.

HCLTech Wins IT Modernisation Mandate From UK’s M Group

On September 22, 2026, HCLTech announced that M Group had selected it to modernise IT operations across more than 200 locations in the UK and Ireland.

The engagement will use HCLTech's AI Force platform and AI-led managed services to streamline the infrastructure services provider's technology environment. The deal adds to HCLTech's recent pipeline of AI-led transformation engagements.

The development is particularly relevant as enterprises continue shifting technology spending towards AI, automation and modernisation. For HCLTech, larger transformation contracts can improve revenue visibility if execution remains strong.

HCLTech Expands AI and Semiconductor Capabilities

HCLTech has also stepped up investments in newer technology areas during September.

The company launched HCLTech Pulse on September 17, a dedicated business unit focused on AI-led transformation for fast-scaling enterprises with annual revenue between $500 million and $5 billion.

Earlier in September, HCLTech launched an Advanced Semiconductor Lab in Bengaluru with an investment of ₹185 Cr. The facility is designed to support semiconductor testing, validation and failure analysis, expanding the company's engineering capabilities in the semiconductor ecosystem.

These initiatives form part of HCLTech's broader effort to build businesses around AI, engineering and semiconductor services rather than relying only on traditional IT services.

HCLTech Share Price Today

HCLTech shares closed at ₹1,258.20 on September 24, 2026, according to NSE historical price data. The stock declined 0.21% during the session.

The shares have delivered approximately -22.5% YTD returns and -12.8% over the past one year, based on the September 24, 2026 closing price. The stock remains well below its 52-week high of ₹1,770 recorded earlier this year.

Data as of September 24, 2026, 3:30 PM.

HCLTech Q1 FY27 Results Show Double-Digit Growth

HCLTech reported its Q1 FY27 results on July 13, 2026, for the quarter ended June 30.

Revenue from operations increased 13.94% YoY to ₹34,579 Cr from ₹30,349 Cr in Q1 FY26. Revenue also increased 1.76% QoQ from ₹33,981 Cr in Q4 FY26.

Profit for the period stood at ₹4,626 Cr, compared with ₹3,844 Cr in Q1 FY26, representing a 20.34% YoY increase. On a sequential basis, profit increased 3.03%. EBIT rose 17.99% YoY to ₹5,831 Cr, while the EBIT margin improved to 16.86%.

Metric	Q1 FY27	Q4 FY26	QoQ %	Q1 FY26	YoY %
Revenue from Operations (₹ Cr)	34,579	33,981	1.76%	30,349	13.94%
Total Income (₹ Cr)	34,940	34,303	1.86%	30,805	13.42%
EBIT (₹ Cr)	5,831	5,620	3.75%	4,942	17.99%
EBIT Margin	16.86%	16.54%	+0.32 ppt	16.28%	+0.58 ppt
PAT (₹ Cr)	4,626	4,490	3.03%	3,844	20.34%
EPS (₹)	17.06	16.56	3.02%	14.17	20.40%

Source: HCLTech Q1 FY27 consolidated financial results.

IT and Business Services Remain the Main Growth Driver

IT and Business Services remained HCLTech's largest revenue contributor in Q1 FY27, generating ₹26,049 Cr, up 16.01% YoY.

Engineering and R&D Services revenue increased 9.97% YoY to ₹5,690 Cr, while HCLSoftware revenue rose 4.37% YoY to ₹2,840 Cr.

Segment	Q1 FY27 (₹ Cr)	Q1 FY26 (₹ Cr)	YoY %
IT & Business Services	26,049	22,454	16.01%
Engineering & R&D Services	5,690	5,174	9.97%
HCL Software	2,840	2,721	4.37%

Source: HCLTech consolidated segment disclosures.

IT and Business Services therefore remained the primary contributor to overall growth, while HCLSoftware continued to grow at a slower pace.

Record Deal Wins and Advanced AI Support Growth

HCLTech reported $2.407 billion in total contract value from new deal wins during Q1 FY27, its highest-ever Q1 net new bookings.

Advanced AI revenue reached $171 million, increasing 10.6% QoQ and 62.1% YoY in constant-currency terms. The company also maintained its FY27 revenue growth guidance of 1% to 4% in constant currency and services revenue growth guidance of 1.5% to 4.5%.

The company is also investing in AI infrastructure. HCLTech announced plans to invest up to ₹3,500 Cr to establish AI data centres, potentially expanding capacity to 50 MW.

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HCLTech Dividend and Jaspersoft Acquisition

HCLTech declared an interim dividend of ₹12 per equity share for FY27. The record date was July 17, 2026, with payment scheduled for July 27, 2026.

The company also completed the acquisition of Jaspersoft, a business unit of Cloud Software Group, on July 1, 2026, for ₹2,275 Cr. The acquisition will be accounted for from the following quarter.

Jaspersoft adds embedded analytics and reporting capabilities to HCLTech's software portfolio.

What Should Investors Watch Now?

The immediate focus will shift towards HCLTech's September-quarter performance and whether the strong Q1 deal pipeline is translating into revenue growth.

Investors should also track Advanced AI revenue, margins, large-deal conversion and the contribution from newer investments such as AI infrastructure, HCLTech Pulse and the semiconductor business.

The stock's decline of around 22.5% YTD also shows that strong earnings growth alone has not been enough to overcome broader concerns surrounding IT spending, AI-led disruption and sector valuations.

Final Takeaway

HCLTech enters the second quarter with a strong deal pipeline and expanding exposure to AI-led services. The latest M Group contract adds to its transformation business, while HCLTech Pulse and the semiconductor lab broaden its growth opportunities.

Q1 FY27 delivered 13.94% revenue growth and 20.34% profit growth, but investors now need evidence that these gains can translate into sustained growth as the year progresses.

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