HCL Tech Q3 Results: Net profit drops 11.2% YoY to ₹4,076 crore, revenue rises 13.3%; here are 5 key highlights

HCL Technologies, the country’s third-largest IT company, announced its financial performance for the quarter ended December (Q3FY26) today, post market hours.

The software company reported higher-than-expected revenue of ₹33,872 crore for Q3FY26, reflecting a 6% quarter-on-quarter (QoQ) and 13.3% year-on-year (YoY) growth. In constant currency (CC) terms, revenue rose 4.2% QoQ and 4.8% YoY, while service revenue increased 1.8% QoQ and 5% YoY in CC terms.

Meanwhile, revenue from Advanced AI surged 19.9% QoQ in CC terms, reaching $146 million.

Despite reporting higher top-line growth, the company’s net profit came in lower at ₹4,076 crore, down from ₹4,591 crore—a decline of 11.21%—impacted by a one-time cost of ₹956 crore related to new labour code provisions introduced during the quarter.

On the operating front, the company reported an EBIT of ₹6,285 crore, up 8% YoY, with EBIT margins expanding (excluding the one-time impact of New Labour Codes,) to 18.6% from 17.5% in the September quarter.

C. Vijayakumar, CEO & Managing Director of HCL Tech, said, said, “Another standout quarter on all fronts, with revenue up 4.2% QoQ in constant currency and a strong recovery of operating margins to 18.6%. The robust revenue momentum in the quarter has enabled us to cross $15 billion in annualized revenues. Our new bookings were exceptionally high at $3 billion. 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, supported by seasonality and our Data Intelligence portfolio. We are well positioned to address the evolving AI demands of our clients across industries and service lines," he further added.

New deal wins jump over 43% YoY

The company secured multiple deals during the quarter, including a five-year strategic engagement with a leading global apparel retailer to serve as its long-term AI-led technology partner, with a TCV of $473 million. As a result, new deal bookings improved by 17% QoQ and 43.5% YoY to $3,006 million, according to its earnings filing.

The company expanded its client base in Q3FY26, with $100M+ clients rising to 23 and $50M+ clients reaching 56. The $10M+ and $5M+ segments grew to 268 and 421 clients, respectively, while $1M+ clients increased to 968.

Vertical-wise Performance: Technology, BFSI Lead Growth

Financial Services remaining the largest vertical at 21.1% of revenues, growing 8.1% YoY in constant currency. Technology and Services emerged as the fastest-growing segment, with its share rising to 14.2% and YoY CC growth of 14.4%.

Manufacturing was stable at 18.8%, while Telecommunications, Media & Entertainment contributed 12.5% with healthy growth. Lifesciences & Healthcare and Retail & CPG saw some pressure during the quarter, even as Public Services posted resilient growth.

Voluntary attrition dips to 12.4% in December quarter

The company’s voluntary employee attrition rate fell to 12.4% in December 2025, down from 12.6% in the September-ending quarter.

This indicates a decline in the number of employees choosing to leave the company over the past year, based on a trailing twelve-month (LTM) basis, according to the company’s regulatory filing.

Meanwhile, the attrition rate excludes involuntary departures and employees in Digital Process Operations.

HCL Tech declares ₹12 interim dividend

HCL Tech announced an interim dividend of ₹12 per share, marking the 92nd consecutive quarter of dividend payouts.

"The Board of Directors has declared an interim dividend of ₹12 per equity share of ₹2 each for the financial year 2025-26. The record date for the payment of the dividend is January 16, 2026, and the payment date is January 27, 2026," the company said in its filing today.

HCL Tech FY26 guidance

The company expects its revenue to be 4%-4.5% for the current fiscal year. It maintained that revenue from the services segment is expected to grow 4.75%-5.25% YoY in constant currency (CC) terms, with an EBIT margin projected in the range of 17.0%-18.0%.

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