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Informist, Tuesday, Apr. 21, 2026

 

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--HCL Tech Jan-Mar consol revenue INR 339.81 bln
--Analysts saw HCL Tech Jan-Mar consol revenue at INR 344.24 bln
--HCL Tech Jan-Mar consol net profit INR 44.88 bln vs INR 40.76 bln qtr ago
--HCL Tech Jan-Mar consol revenue INR 339.81 bln vs INR 338.72 bln qtr ago
--HCL Tech to pay INR 24 per share interim dividend
--HCL Tech interim dividend record date Apr 25
--HCL Tech Jan-Mar tech, svcs sales up 17.8% on yr in constant currency
--HCL Tech Jan-Mar manufacturing sales up 3.3% on yr in constant currency
--HCL Tech Jan-Mar financial svcs sales up 4.3% on yr in constant currency
--HCL Tech Jan-Mar HCLSoftware sales down 28.1% QoQ in constant currency
--HCL Tech Jan-Mar svcs revenue down 0.1% on qtr in constant currency terms
--HCL Tech won new deals worth $1.94 bln in Jan-Mar
--HCL Tech trailing 12-month attrition 12.5% vs 12.4% quarter ago
--HCL Tech total headcount 227,181 on Mar 31 vs 226,379 qtr ago
--HCL Tech Jan-Mar consol EBIT margin 16.5% vs 18.6% qtr ago
--HCL Tech Jan-Mar consol EBIT INR 56.20 bln, down 10.6% on quarter
--HCL Tech Jan-Mar consol revenue up 2.4% on year in constant currency
--HCL Tech Jan-Mar consol revenue down 3.3% on qtr in constant currency
--HCL Tech expect FY27 EBIT margin at 17.5-18.5%
--HCL Tech expects sales to rise 1-4% in FY27 in constant currency
--HCL Tech Q4 consol HCL Software sales INR 27.55 bln vs INR 36.92 bln QoQ
--HCL Tech Q4 consol engg, R&D svcs sales INR 57.83 bln vs INR 56.76 bln QoQ
--HCL Tech Q4 consol IT, ops svcs sales INR 254.43 bln vs INR 245.04 bln QoQ
--HCL Tech FY26 consol revenue INR 1.30 tln vs INR 1.17 tln year ago
--HCL Tech FY26 consol net profit INR 166.42 bln vs INR 173.90 bln year ago

 

By Anand JC

 

MUMBAI - HCL Technologies Ltd. on Tuesday said its performance in the March quarter was below its own expectations because of lower discretionary spend and delayed decision-making. The company's net profit and revenue both missed analysts' expectations for the March quarter.

 

The information technology major reported a consolidated net profit of INR 44.88 billion, lower than analysts' projections of INR 47.23 billion. The profit grew 10% on quarter and 4.2% on year.

 

HCL Tech's consolidated revenue for the March quarter was INR 339.81 billion, below Street's expectation of INR 344.24 billion. The company's top line was almost flat on quarter but grew 12.4% on year. The sequential improvement in HCL Tech's revenue in the March quarter was the slowest in seven quarters.

 

"HCLTech delivered superior revenue growth of 3.9% in constant currency [for 2025-26 (Apr-Mar)] 10 bps below our guidance and 17.2% operating margin within our guidance, in a year marked by an uncertain demand environment," HCL Tech's Chief Executive Officer and Managing Director C. Vijayakumar said in a press release. 

 

The company reported revenue growth of 2.4% on year but a 3.3?cline on quarter in constant currency terms for the March quarter. In dollar terms, its top line fell almost 3.0% on quarter and grew 5.3% on year to $3.68 billion.

 

HCL Tech's earnings before interest and tax for the March quarter were INR 56.20 billion, down almost 11% on quarter but up 3.3% on year. In dollar terms, HCL Tech's EBIT for the reporting quarter was $607 million, down from $704 million in the December quarter and $626 million in the year-ago quarter.  

 

Its EBIT margin, excluding the impact of restructuring, was 17.7%, down from 19.4% in the December quarter. Including the restructuring impact, the margin was at 16.5% for the reporting quarter, down from 18.6% a quarter ago.

 

SEGMENTAL VIEW

HCL Tech's information technology and business services segment, which accounts for the bulk of its revenue, reported a top line of INR 254.43 billion, up 15% on year and almost 4% on quarter. In constant currency terms, the segment's revenue was flat on quarter but up 4.3% on year. The EBIT margin of the segment was 16.3% for the reporting quarter, down 64 basis points on year and 7 bps on quarter.

 

Its engineering and research and development segment's revenue grew 12% on year and 2% sequentially to INR 57.83 billion. In constant currency terms, the segment's revenue fell 1.3% on quarter but grew 3.8% on year. The segment's EBIT margin was 15.5% for the reporting quarter, down 243 basis points on year and 113 bps on quarter.

 

HCL Software's revenue in the March quarter was INR 27.55 billion, down nearly 5% on year and a touch over 25% on quarter. In constant currency terms, HCL Software's revenue fell 14% on year and 28% on quarter. The segment's EBIT margin fell 496 bps on year and 1,570 bps on quarter to 19.3% for the reporting quarter. 

 

SERVICES SHOW

In the US, its services business grew 4.9% on year in constant currency terms. Contribution of the US to the segment fell to 56.3% in the March quarter from 57.4% a year ago. In Europe, the business fell 2.9% on year while contribution fell to 27.1% from 27.5% in the year-ago quarter. 

In the rest of the world, the services business grew almost 17% on year in constant currency terms. The contribution of these regions to the business grew to 13.7% in the March quarter from 12% in the year-ago quarter. In India, the business grew 5.3% on year while contribution fell to 2.9% from 3.1% in the year-ago quarter. 

Among verticals, financial services' revenue grew 4.3% on year in constant currency terms while that of manufacturing grew 3.3%. Technology and services vertical's revenue grew a staggering 18% on year, while life sciences and healthcare grew only 1.6%. Telecommunications, media, publishing, and entertainment was the only vertical to report a fall, down almost 9% on year. 

 

HCL Tech won new deals totalling $1.94 billion in the March quarter and $9.32 billion in FY26. "Our new AI-led service offerings are getting traction in the market and is reflected in annualised Advanced AI revenues crossing $620 million in Q4," Vijayakumar said. 

 

STAFFING

HCL Tech's total headcount was 227,181 as of Mar. 31, up from 226,379 as of Dec. 31 and 223,420 a year ago. The company added 802 employees in the March quarter, compared with a fall of 261 in the December quarter and 269 in the year-ago quarter.

 

HCL Tech added 1,712 freshers in the reporting quarter, much lower than 2,852 added in the December quarter and slightly lower than 1,805 added in the year-ago quarter. Its trailing 12-month attrition rate improved to 12.5% in the March quarter, down from 13% in the year-ago quarter, but only slightly worse than in the December quarter.

 

FY26 and FY27

HCL Tech reported a consolidated net profit of INR 166.42 billion in 2025-26 (Apr-Mar), down 4.3% on year. Revenue for the full financial year grew 11% to 1.30 trillion. Excluding the impact of restructuring, HCL Tech's EBIT margin for FY26 was 17.9%, compared to 18.3% in FY25.

 

Going forward, HCL Tech expects its top line to grow between 1% to 4% in constant currency terms in FY27. Additionally, it expects the EBIT margin to be between 17.5% and 18.5%. 

 

HCL Tech's board approved a dividend of INR 24 per share, bringing the total dividend issued in FY26 to INR 60. The company has set Saturday as the record date for the interim dividend and May 5 as the payment date. 

 

HCL Tech announced its March quarter earnings after market hours. Tuesday, its shares closed 0.9% higher at INR 1,441.20 on the National Stock Exchange.  END

 

Edited by Saji George Titus

 

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