“This article expresses my personal analysis based on publicly available financial data and market reports.”
HCLTech Q2 Revenue 2025 Up 11% – A Strong Topline Bounce
The headlines are eye-catching: for the quarter ending September 2025, HCLTech Q2 revenue climbed 10.7–11% year-on-year, reaching around ₹31,942 crore. That’s solid growth in a time when many IT firms are struggling to expand.
But here’s the twist – net profit remained flat, holding at ₹4,235 crore, almost unchanged from a year ago.
So what’s happening under the hood?
Why Did Profit Stall? Margin Pressure & Restructuring Costs
Revenue growth is great – but costs matter even more. In this quarter, HCLTech faced higher restructuring expenses, which trimmed its margins. The operating margin slid by ~130 basis points to 16.5%.
Also, the rising costs of talent, global delivery, and localization likely weighed in. The company is actively rebalancing resources across geographies and skill sets.
In short: revenue is improving, but efficiency and cost control are being tested.
AI & Deal Wins: Glimpses of a Brighter Future
One of the standout stories this quarter is HCLTech’s AI revenue crossing $100 million – making it one of the first Indian IT firms to report standalone AI revenue. That shows their push to monetize next-gen capabilities is bearing fruit.
Deal flow was also strong. New bookings hit $2,569 million, up nearly 42% quarter-on-quarter and 16% year-on-year.
Segments like engineering & R&D showed double-digit growth, boosted by deals in sectors like auto, energy, and cloud services.
These signals show HCLTech isn’t just riding wind – it’s trying to build its own engines.
Real-World Lens: What It Means for Investors & Employees
If you’re an investor, you might feel conflicted. The topline strength is encouraging, but flat profit means returns are muted for now. Margins must recover for positive sentiment to follow.
For employees, it’s a time of flux. As the company restructures and aligns skills to demand – especially in AI and engineering – roles may shift. But there’s also opportunity: those who ride the AI wave could be in demand.
Also notable: HCLTech declared an interim dividend of ₹12 per share, continuing its long streak of consistent payouts – 91 quarters, in fact. That’s a signal of confidence to long-term shareholders.
Outlook 2025: Can HCLTech Turn Strength into Stability?
According to The Economic Times Looking ahead, HCLTech retains FY26 growth guidance of 3–5% (constant currency), and is leaning toward the higher side given recent momentum.
The company is also working to reduce reliance on H-1B visas, shifting toward more onshore and nearshore delivery to de-risk from geopolitical or policy changes.
Still, risks are real: currency swings, global tech spending cuts, US tariffs, and margin pressure could derail momentum.
If HCLTech can regain margin discipline while scaling AI and engineering, 2025 could become a pivot year. The challenge is less about revenue – it’s about turning strength into sustainable profit.
In My View
It feels like HCLTech is straddling a gap – on one side, promising new growth engines in AI and engineering; on the other, legacy cost structures and margin drag. As a tech observer, I believe their ability to fast-track margin recovery will define their narrative in 2025. The topline is no longer the hurdle – execution is.
Conclusion
HCLTech’s Q2 tells a mixed story: revenue’s racing ahead, but profits are stuck. The silver lining? AI and deal momentum suggest it’s not a one-quarter fluke. If margins rebound, HCLTech could turn this plateau into a launchpad. Let’s watch closely – 2025 may yet be the year they rewrite their growth story.
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Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not US News Weeks. We advise investors to check with certified experts before making any investment decisions.
Source : Business Standard & The Economic Times - HCLTech Q2 Revenue up 10.7%
✍️ Written by Nikhil Singh
Market & IPO Analyst | Business News Writer | Tech-Auto Observer
Nikhil has been tracking Indian IPOs, consumer brands, tech & automobile overview and financial trends since 2019. His writing style blends market insight with a relatable human voice — making complex data simple for everyday investors.
