[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Mr. Wadhwa [@sourabhwadhwa22](/creator/twitter/sourabhwadhwa22) on x XXX followers Created: 2025-07-18 12:14:50 UTC HCL Technologies – Q1 FY26 Concall Highlights (July 2025) X. Revenue & Segment Performance - Revenue: $XXXXX mn, +3.7% YoY CC, –0.8% QoQ. LTM revenue >$14 bn. - Services Revenue: $XXXXX mn, +4.5% YoY CC (–0.1% QoQ); Software: $XXX mn (–3% YoY). - Growth: IT/Biz Services +3% YoY, Engineering/R&D +11.8% YoY; Software weak after prior run (ARR up XXX% YoY). - Geographies: US +0.5%; Europe +9.6%; Rest of World +15%. - Verticals: Strongest in Tech & Services (+13.7%), Telecom/Media (+13%), Retail/CPG (+8.2%), BFSI (+6.8%). X. Margins & Profitability - EBIT Margin: XXXX% (–161 bps QoQ); Net Income $XXX mn (12.7% margin). - Headwinds: Lower utilization, skill mismatch, elevated AI/go-to-market investments, one-off client bankruptcy (30 bps hit). - Guidance: FY26 revenue growth raised to 3–5% CC. EBIT margin now at 17–18% (down from 18–19%+); medium-term margin target remains 19–20%. - Cash/ROIC: Net cash $XXX bn. ROIC at XXXX% (+353 bps YoY), healthy OCF/FCF conversions. X. Bookings, Pipeline & Deals - Q1 Net New Bookings: $XXX bn; X large deals slipped to Q2, boosting near-term outlook. - Large Financial Services win (not in Q1 TCV yet). Client adds in all size buckets ($1 mn+ to $XX mn+). - Pipeline: Remains strong; digital/engineering/AI-led deals gaining traction. X. AI/GenAI Strategic Focus - Central to Strategy: Heavy investments in AI/GenAI, with multi-pronged approach (ecosystem, offerings, and platforms). - Partnerships: OpenAI, UiPath, Google Cloud, NVIDIA; recognized as a leader by major analysts. - Client Wins: AI featured in marquee global wins (logistics, telecom, auto, aerospace, sports, imaging). - Offerings: Broad suite of AI solutions (AI Force, Foundry, Agentic AI, etc.); “shift from POCs to strategic, multi-million dollar partnerships.” - Pass-through of Productivity to Clients: Willing to trade revenue-for-productivity gains for higher wallet share. X. Demand Trends & Industry - Verticals: FS and Technology strong, Telecom/Public Services stable, but Manufacturing/Life Sciences/Retail soft. - Efficiency-Led and Modernization Deals: Healthy demand, with “application modernization” and embedded AI key drivers. - Cautious on Manufacturing/Auto; bright spots in engineering, digital, cloud, automation. X. Talent, Operations & Restructuring - Headcount: XXXXXXX (–269 QoQ); attrition at XXXX% LTM, trending lower. - Talent focus: Sharper specialization, entry-level recalibration; upskilling for AI roles. - Restructuring: Cost rationalization, productivity-led releases, margin headwinds factored for H1; normalization expected in FY27. X. Shareholder Return - EPS: ₹62.57 (LTM, +3.4% YoY). - Dividend: ₹12/share interim; ₹60/share LTM payout (~96% of net income). X. Management Commentary & Outlook - Temporary Margin Dip: Margin decline in FY26 is “transitory”; expect recovery to 19–20% as AI investments mature, restructuring costs wane. - Aggressive AI Push: Confident this will secure long-term growth and new deal wins. - Deal Pipeline: Management optimistic about closing large delayed deals in Q2, supporting revenue guidance. - Investor Watchpoints: Execution on deal conversion/ramp-up, acceleration in AI revenue, and margin normalization beyond FY26. Summary: HCLTech delivered modest growth in Q1 FY26 amid margin headwinds from investments and restructuring. The company doubled down on GenAI/AI as the core of its service/pipeline strategy, remained transparent about productivity trade-offs, and maintained confidence in revenue and medium-term margin recovery as investments bear fruit. Focus for investors: watch large deal conversion, AI monetization, and margin rebound through FY27. XX engagements  **Related Topics** [hcl technologies](/topic/hcl-technologies) [Post Link](https://x.com/sourabhwadhwa22/status/1946181869394932176)
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Mr. Wadhwa @sourabhwadhwa22 on x XXX followers
Created: 2025-07-18 12:14:50 UTC
HCL Technologies – Q1 FY26 Concall Highlights (July 2025)
X. Revenue & Segment Performance
- Revenue: $XXXXX mn, +3.7% YoY CC, –0.8% QoQ. LTM revenue >$14 bn.
- Services Revenue: $XXXXX mn, +4.5% YoY CC (–0.1% QoQ); Software: $XXX mn (–3% YoY).
- Growth: IT/Biz Services +3% YoY, Engineering/R&D +11.8% YoY; Software weak after prior run (ARR up XXX% YoY).
- Geographies: US +0.5%; Europe +9.6%; Rest of World +15%.
- Verticals: Strongest in Tech & Services (+13.7%), Telecom/Media (+13%), Retail/CPG (+8.2%), BFSI (+6.8%).
X. Margins & Profitability
- EBIT Margin: XXXX% (–161 bps QoQ); Net Income $XXX mn (12.7% margin).
- Headwinds: Lower utilization, skill mismatch, elevated AI/go-to-market investments, one-off client bankruptcy (30 bps hit).
- Guidance: FY26 revenue growth raised to 3–5% CC. EBIT margin now at 17–18% (down from 18–19%+); medium-term margin target remains 19–20%.
- Cash/ROIC: Net cash $XXX bn. ROIC at XXXX% (+353 bps YoY), healthy OCF/FCF conversions.
X. Bookings, Pipeline & Deals
- Q1 Net New Bookings: $XXX bn; X large deals slipped to Q2, boosting near-term outlook.
- Large Financial Services win (not in Q1 TCV yet). Client adds in all size buckets ($1 mn+ to $XX mn+).
- Pipeline: Remains strong; digital/engineering/AI-led deals gaining traction.
X. AI/GenAI Strategic Focus
- Central to Strategy: Heavy investments in AI/GenAI, with multi-pronged approach (ecosystem, offerings, and platforms).
- Partnerships: OpenAI, UiPath, Google Cloud, NVIDIA; recognized as a leader by major analysts.
- Client Wins: AI featured in marquee global wins (logistics, telecom, auto, aerospace, sports, imaging).
- Offerings: Broad suite of AI solutions (AI Force, Foundry, Agentic AI, etc.); “shift from POCs to strategic, multi-million dollar partnerships.”
- Pass-through of Productivity to Clients: Willing to trade revenue-for-productivity gains for higher wallet share.
X. Demand Trends & Industry
- Verticals: FS and Technology strong, Telecom/Public Services stable, but Manufacturing/Life Sciences/Retail soft.
- Efficiency-Led and Modernization Deals: Healthy demand, with “application modernization” and embedded AI key drivers.
- Cautious on Manufacturing/Auto; bright spots in engineering, digital, cloud, automation.
X. Talent, Operations & Restructuring
- Headcount: XXXXXXX (–269 QoQ); attrition at XXXX% LTM, trending lower.
- Talent focus: Sharper specialization, entry-level recalibration; upskilling for AI roles.
- Restructuring: Cost rationalization, productivity-led releases, margin headwinds factored for H1; normalization expected in FY27.
X. Shareholder Return
- EPS: ₹62.57 (LTM, +3.4% YoY).
- Dividend: ₹12/share interim; ₹60/share LTM payout (~96% of net income).
X. Management Commentary & Outlook
- Temporary Margin Dip: Margin decline in FY26 is “transitory”; expect recovery to 19–20% as AI investments mature, restructuring costs wane.
- Aggressive AI Push: Confident this will secure long-term growth and new deal wins.
- Deal Pipeline: Management optimistic about closing large delayed deals in Q2, supporting revenue guidance.
- Investor Watchpoints: Execution on deal conversion/ramp-up, acceleration in AI revenue, and margin normalization beyond FY26.
Summary:
HCLTech delivered modest growth in Q1 FY26 amid margin headwinds from investments and restructuring. The company doubled down on GenAI/AI as the core of its service/pipeline strategy, remained transparent about productivity trade-offs, and maintained confidence in revenue and medium-term margin recovery as investments bear fruit. Focus for investors: watch large deal conversion, AI monetization, and margin rebound through FY27.
XX engagements
Related Topics hcl technologies