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Informist, Monday, Jan. 12, 2026

 

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--Analysts saw HCL Tech Oct-Dec consol net profit at INR 47.49 bln
--HCL Tech Oct-Dec consol revenue INR 338.72 bln
--Analysts saw HCL Tech Oct-Dec consol revenue at INR 331.86 bln
--HCL Tech Oct-Dec consol net profit INR 40.76 bln vs INR 42.35 bln qtr ago
--HCL Tech Oct-Dec consol revenue INR 338.72 bln vs INR 319.42 bln qtr ago
--HCL Tech Q3 PAT includes one-time cost INR 9.56 bln on new labour codes
--HCL Tech to pay INR 12 per share interim dividend
--HCL Tech interim dividend record date is Fri
--HCL Tech Apr-Dec consol net profit INR 121.54 bln vs INR 130.83 bln yr ago
--HCL Tech Apr-Dec consol revenue INR 961.63 bln vs INR 868.09 bln year ago
--HCL Tech Oct-Dec consol IT, business services revenue INR 245.04 bln
--HCL Tech Q3 consol IT, ops svcs sales INR 245.04 bln vs INR 236.93 bln QoQ
--HCL Tech Q3 consol engg, R&D svcs sales INR 56.76 bln vs INR 54.23 bln QoQ
--HCL Tech Q3 consol HCL Software sales INR 36.92 bln vs INR 28.26 bln QoQ
--HCL Tech revises FY26 constant currency sales growth guidance to 4-4.5%
--HCL Tech ups FY26 constant currency svcs sales growth guidance to 4.75-5.25%
--HCL Tech retains FY26 EBIT margin guidance of 17-18%
--HCL Tech wins new deals worth $3.01 bln Oct-Dec
--HCL Tech: FY26 EBIT margin guidance excludes impact of new labour codes
--HCL Tech Oct-Dec consol revenue up 4.2% on qtr in constant currency terms
--HCL Tech Oct-Dec consol EBIT margin 18.6% vs 17.5% qtr ago
--HCL Tech Oct-Dec consol EBIT INR 62.85 bln, up 13.2% on quarter
--HCL Tech Oct-Dec svcs revenue up 1.8% on qtr in constant currency terms
--HCL Tech Oct-Dec trailing 12-mo attrition 12.4% vs 12.6% quarter ago
--HCL Tech total headcount 226,379 as on Dec 31 vs 226,640 qtr ago
--HCL Tech Oct-Dec HCLSoftware sales up 28.1% QoQ in constant currency
--HCL Tech sales from Americas up 1.5% YoY in Oct-Dec in constant currency
--HCL Tech sales from Europe up 4.6% YoY in Oct-Dec in constant currency
--HCL Tech MD: HCLSoftware Q3 sales growth driven by seasonality
--HCL Tech MD:HCLSoftware Q3 sales growth driven by data intelligence pdts
--HCL Tech Oct-Dec fincl services sales up 8.1% on year in constant currency
--HCL Tech Oct-Dec tech, svcs sales up 14.4% on year in constant currency
--HCL Tech Oct-Dec consol employee cost INR 188.67 bln vs INR 183.01 bln QoQ

 

By Anand JC

 

NEW DELHI – HCL Technologies Ltd. reported a double-digit fall in its bottom line for the December quarter, which was even lower than analysts' estimates, even as its top line managed to beat expectations and grow at an 11-quarter high on a year-on-year basis. 

 

The consolidated net profit of HCL Technologies for the December quarter stood at INR 40.76 billion, down 3.8% on quarter and 11% on year. Analysts had expected the company to report a bottom line of INR 47.49 billion.

 

HCL Technologies also reported a one-time impact of INR 9.56 billion due to the new labour codes, which came into effect on Nov. 21. As a result, the company had to increase provision for employee benefits, which has been recognised in staff costs for the reporting period. Adding back this one-time gain, HCL Technologies' net profit improved to INR 50.32 billion, pipping analysts' estimates.

 

Its consolidated revenue for the reporting quarter was INR 338.72 billion, 13.3% higher on year and 6% higher sequentially. The tech major's top line exceeded analysts' estimates of INR 331.86 billion in revenue.

 

The company's revenue grew 4.8% on year and 4.2% on quarter in constant currency terms. In dollar terms, its revenue grew 7.4% on year and 4.1% on quarter to $3.79 billion.            

 

Its new deal wins grew 17% on quarter and 44% on year to $3 billion. HCL Technologies reported an earnings before interest and tax of INR 62.85 billion, up 8% on year and a little over 13% on quarter. In dollar terms, the company's EBIT grew to $704 million in the December quarter, up 11% on quarter and 2% on year. 

 

Its EBIT margin of 18.6% for the December quarter was an improvement over the September quarter's margin of 17.5%; however, it was lower than the 19.5% margin recorded in the year-ago quarter. The EBIT margin for the reporting quarter includes a hit of 81 basis points because of restructuring costs.

 

The company has guided for a revenue growth of 4-4.5% for 2025-26 (Apr-Mar) in constant currency terms. It has retained its EBIT margin guidance for FY26 at 17-18%. However, this includes the one-time impact due to the new labour codes.

 

SEGMENT DETAILS

HCL Technologies earned a revenue of INR 245.04 billion from its information technology and business services operations for the December quarter, up 12% on year. Revenue from engineering and research and development services for the reporting quarter grew 18% on year to INR 56.76 billion. Revenue from HCL Software for the latest quarter was INR 36.92 billion, up 12% on year. 

 

The EBIT margin of its IT and business services operations was 16.4% in the reporting quarter, up from 16.3% in the September quarter but down from 17.2% in the year-ago quarter. The engineering and R&D services business' EBIT margin fell sharply to 16.6% for the December quarter from 18.9% in the year-ago quarter and 17.5% in the September quarter.

 

GEOGRAPHIES

HCL Technologies' services revenue grew 1.8% on quarter and 5% on year in constant currency terms. The company earned 56.3% of its services revenue from the US in the December quarter, compared to 56.2% in the September quarter and 59.5% in the year-ago quarter. Revenue from the US grew 1.5% on year in constant currency terms.

 

Revenue contribution from Europe grew to 27.7% from 26.2% in the year-ago quarter, but fell from 28.3% in the trailing quarter. Revenue contribution from India remained largely unchanged. Services revenue from India grew 16% on year in constant currency terms, while that in Europe grew almost 5% on year. 

 

FOCUS ON AI

HCL Tech's revenue from digital services grew 17.7% in constant currency terms for the reporting quarter, contributing around 43% to its services revenue. Revenue from "Advanced AI" or artificial intelligence services, grew 19.9% on quarter to $146 million in constant currency terms, HCL Tech said in a release.

 

"AI continues to be a key growth driver across our portfolio, and we are sharpening our capabilities to leverage these emerging opportunities," HCL Technologies' Chairperson Roshni Nadar Malhotra said in a press release. 

 

PEOPLE METRICS

HCL Tech's total people count as of Dec. 31 was 226,379 employees, which includes technical, and sales and support staff. This is a little lower than 226,640 as of Sept. 30 but higher than 220,755 as of 2024-end. Attrition rate improved to 12.4% in the reporting quarter from 12.6% in the September quarter and 13.2% in the year-ago quarter.

 

The company net reduced 261 employees this quarter, compared to a net addition of 3,489 employees as of Sept. 30 and an addition of 2,134 employees as of 2024-end. HCL Tech hired 2,852 freshers in the December quarter, lower than 5,196 in the trailing quarter but higher than 2,014 in the year-ago quarter.

 

HCL Tech's board has declared an interim dividend of INR 12 per share for FY26. Friday has been set as the record date for the dividend payment, with payment date set at Jan. 27.

 

The tech major announced its December quarter results after market hours. Monday, its shares closed 0.4% higher at INR 1,667.60 apiece on the National Stock Exchange.  End

 

US$1 = INR 90.15

 

Edited by Deepshikha Bhardwaj

 

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