HCLTech Q3 FY26 Results: Net profit rises 12.5% YoY; Declares Rs 12 interim dividend – Check record date

HCL Technologies on Monday announced its consolidated financial results for the third quarter of FY26, ended December 31, 2025.

The company reported revenue of Rs 33,872 crore, up 6 per cent quarter-on-quarter and 13.3 per cent year-on-year. Revenue in US dollars stood at $3,793 million, up 4.1 per cent QoQ and 7.4 per cent YoY.

In constant currency terms, revenue grew 4.2 per cent QoQ and 4.8 per cent YoY. HCLTech Services revenue increased 1.8 per cent QoQ and 5 per cent YoY in constant currency. Digital revenue rose 17.7 per cent YoY, contributing 43.2 per cent of services revenue.

Advanced AI revenue reached $146 million, up 19.9 per cent QoQ in constant currency. HCLSoftware revenue increased 3.1 per cent YoY, with ARR reaching $1.07 billion, up 0.6 per cent YoY.

Profitability and Margins

Profitability remained strong, with EBIT at Rs 6,285 crore, up 13.2 per cent QoQ and 8 per cent YoY, representing 18.6 per cent of revenue. Net profit rose to Rs 4,795 crore, up 13.2 per cent QoQ and 4.5 per cent YoY.

Excluding the one-time impact of new labour codes, EBIT margins improved 111 basis points QoQ. Return on invested capital on a last twelve months basis stood at 39.4 per cent for the company, up 277 basis points YoY, 45.9 per cent for Services, up 117 basis points, and 23.1 per cent for HCLSoftware, up 513 basis points.

Free cash flow to net income remained healthy at 120 per cent, and the company ended the quarter with its highest-ever cash balance of Rs 34,306 crore.

The Board of Directors declared an interim dividend of Rs 12 per equity share, marking the 92nd consecutive quarterly dividend payout. The record date for the dividend is January 16, 2026, and the payment date is January 27, 2026.

Total contract value of new deals was $3,006 million, up 17 per cent QoQ and 43.5 per cent YoY. The company’s workforce stood at 226,379, with a net reduction of 261 employees during the quarter.

HCLTech added 2,852 freshers, and attrition over the last twelve months was 12.4 per cent, down from 13.2 per cent in the same quarter last year.

Roshni Nadar Malhotra, Chairperson of HCLTech, 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.”

C Vijayakumar, CEO and Managing Director, said, “Another standout quarter on all fronts, with revenue up 4.2 per cent QoQ in constant currency, along with a strong recovery of operating margin to 18.6 per cent. Our new bookings were exceptionally high at $3 billion,” he said.

“HCL Software revenue grew sharply by 28.1 per cent QoQ and 3.1 per cent YoY in constant currency, driven by seasonality and the data intelligence portfolio. We are well-positioned to address the evolving AI demand of our clients across industries and service lines,” he added.

Shiv Walia, Chief Financial Officer, said, “HCLTech delivered an impressive financial result with Q3 FY26 revenue of Rs 33,872 crore. Our dedicated efforts to improve cash conversion have kept free cash flow healthy, and we ended the quarter with our highest-ever cash balance. Return on invested capital continues to improve across the company, Services, and HCLSoftware.”

For the full year FY26, HCL Technologies expects revenue growth of 4–4.5 per cent YoY in constant currency, services growth of 4.75–5.25 per cent, and an EBIT margin of 17–18 per cent.