In a significant pay-structure reform, HCLTech has merged quarterly variable pay with fixed salary for all its employees to provide greater income stability.
Ram Sundararajan, chief people officer, made the announcement during the earnings call on October 13 for the quarter ending on September 30th quarter.
“We have also taken a decision to move the quarterly variable pay and convert that into fixed pay and merge it with fixed salary for all our employees,” Sundararajan said.
Sundararajan also added that the company has decided to roll out the increments, effective from October, given the strong performance that it had this quarter.
“These are two significant decisions that we have made to support our employees who are making the contributions for the results that we are delivering,” he remarked.
The IT major added 3,489 employees during the quarter, taking its total headcount to 2,26,640, while voluntary attrition dropped to 12.6%, a reduction of 20 basis points from last quarter.
The company also onboarded 5,196 freshers in Q2, taking its total fresher addition for the first half of the fiscal to 7,180, almost double the number hired in the same period last year.
“If you look at what we have done during H1 this year, that’s almost 92% of what we did in the entire year last year. So we are on track to do what we plan to do this year in terms of fresher additions,” he said.
The company also confirmed that it is undergoing a restructuring process to address skill and location mismatches, particularly in post-acquisition integrations.
However, management clarified that the exercise is not a broad-based layoff, but rather a redeployment initiative to align resources with growth priorities.
“On the people’s side, it is largely the skill location mismatch. It’s not a capacity reduction agenda. It’s basically rebalancing the demand supply when it comes to skills and locations, and some of it is also through the acquisitions that we’ve had over the years,” the Sundararajan explained.
“It’s spread out across multiple countries, small numbers across several countries,” he added.
HCLTech reported strong Q2 FY26 results, with INR revenue at ₹31,942 crore, up 5.2% sequentially and 10.7% year-on-year. On a constant currency (CC) basis, revenue rose 2.4% QoQ and 4.6% YoY.
It revealed its advanced AI revenue crossed $100 million for the first time, accounting for approximately 3% of its revenue. The highlight was the new deal bookings topping the $2.5 billion mark, despite no mega-deals driving that growth.
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