HCLTech Q3 results: Net profit declines 11% to Rs 4,076 crore, IT firm declares Rs 12 dividend

The sequential decline follows a strong hiring quarter in Q2FY26, when HCLTech had added 3,489 employees.

• HCL Tech Q3 net profit fell 11 percent YoY to Rs 4,076 crore
• Revenue up 13.3% YoY to Rs 33,872 crore; new deals increased 43% YoY
• HCL Tech announced Rs 12 interim dividend; record date is January 16

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HCL Technologies Ltd's Q3 FY26 consolidated net profit declined 11 percent on-year to Rs 4,076 crore, the IT firm announced on January 12.

Consolidated revenue increased 13.3 percent from a year earlier to Rs 33,872 crore in the quarter ending December 31. In constant currency (CC) terms, the firm's revenue grew 4.8 percent YoY.

A CNBC-TV18 poll of analyst estimates pegged HCL Tech October-December net profit at Rs 4,747 crore, and revenue at Rs 33,360 crore.

TCV, or new deal wins, meanwhile grew more than 43 percent YoY to $3,006 million.

HCLTech said its AI revenue came in at $146 million, up from $100 million in the previous quarter. Revenue from the company's banking and technology verticals rose by 8.1 percent and 14.4 percent respectively, while that from life sciences fell 2 percent during the quarter.

HCL Tech dividend:

Along with the Q3 results, HCL Tech announced an interim dividend of Rs 12 per equity share for FY26. The record date to determine the eligibility of the shareholders set to receive the dividend has been set on January 16.

The dividend will then be paid to the eligible shareholders on January 27.

Labour code impact:

The company reported Rs 956 crore as an exceptional item to cover the impact of new labour laws.

India’s new labour codes, consolidated under the Code on Wages, 2019, Industrial Relations Code, 2020, Code on Social Security, 2020 and Occupational Safety, Health and Working Conditions Code, 2020, came into effect on November 21.

The law introduces a uniform definition of wages. In practice, this stops companies from parking large chunks of pay in allowances to keep statutory payouts low. Accordingly, basic pay must comprise at least 50 percent of CTC. Several other changes like no salary delays, overtime pay rules and more were introduced as part of the new laws.

HCL Tech headcount:

HCL Tech announced that its total headcount stood at 2,26,379 at the end of December, with 261 net additions being recorded during the quarter.

The company added 2,852 freshers during Q3 FY26. Its LTM attrition stood at 12.4 percent, down from 13.2 percent in Q3 of last year.

HCL Tech FY26 guidance:

The company expects its revenue growth to be between 4 percent and 4.5 percet YoY in CC terms. Services revenue growth is expected to be between 4.75 percent and 5.25 percent YoY in CC.

EBIT margin is estimated to be in the range of 17-18 percent, excluding the one-time impact from the new labour laws.

Here's what management said:

HCLTech Chairperson Roshni Nadar Malhotra said, "We have delivered another quarter of robust performance driven by the differentiated value we bring to our clients. AI continues to be a key growth driver across our portfolio, and we are sharpening our capabilities to leverage these emerging opportunities."

The company's CEO & Managing Director C Vijayakumar meanwhile said, "Another standout quarter on all fronts, with revenue up 4.2% QoQ in constant currency along with a strong recovery of operating margin to 18.6%. The strong revenue momentum in the quarter has enabled us to cross $15B in annualized revenues. Our new bookings were exceptionally high at $3B. Our Services revenue grew 1.8% QoQ in constant currency, driven by 19.9% QoQ growth in Advanced AI services. HCL Software revenue grew sharply by 28.1% QoQ and 3.1% YoY in constant currency, driven by seasonality and data Intelligence portfolio. We are well positioned to address evolving AI demand of our clients across industries and service lines."

HCLTech share price:

HCLTech shares rose 0.34 percent today to end at Rs 1,667 on NSE, ahead of the results announcement. The stock has lost more than 16 percent in last one year, with the company's current market capitalisation of Rs 4.51 lakh crore.

Follow all LIVE updates on Q3 results here.