HCLTech has reported its financial results for the third quarter of FY26, revealing a mix of strong revenue growth and profit pressures. The IT services firm's revenue from operations climbed 13.32% to ₹33,872 crore in Q3 FY26, compared to ₹29,890 crore in the corresponding period last year. In US dollar terms, this crosses the $15 billion mark in annualised revenues. However, the company's consolidated net profit experienced an 11.2% decline, settling at ₹4,076 crore for the October-December quarter. This is compared to ₹4,591 crore in the same quarter of the previous fiscal year.
Sequentially, when compared to the second quarter of FY26, HCLTech's profit fell by 3.7%, while revenue increased by 6%. NDTV Profit reports a slightly different QoQ comparison, stating a 3.8% decrease in profit and a 6% increase in revenue.
The dip in net profit is partly attributed to a one-time expense of ₹956 crore related to the New Labour Codes. Despite these profit pressures, HCLTech announced an interim dividend of ₹12 per equity share for FY26, with the record date set for January 16, 2026, and payment scheduled for January 27, 2026.
HCLTech CEO and MD C Vijayakumar highlighted the company's strong revenue momentum and exceptionally high new bookings at USD 3 billion. He also noted the sharp growth in HCL Software revenue, which increased by 28.1% QoQ and 3.1% YoY in constant currency, driven by seasonality and the data intelligence portfolio. Vijayakumar stated that HCLTech is well-positioned to address the evolving AI demand of its clients across industries and service lines.
The company's Q3 FY26 EBIT margin stood at 18.6% compared to 17.2%. However, the Q3 FY26 EBIT margin includes an 81 bps impact of restructuring costs.
HCLTech also reported that its constant currency revenue was up 4.2% QoQ and 4.8% YoY. Revenue from advanced AI reached $146 million, marking a 19.9% QoQ increase in constant currency. The total contract value (TCV) of new deal wins stood at $3,006 million, up 17.0% QoQ and 43.5% YoY.
During the quarter, HCLTech added 2,852 freshers to its workforce. The company's total employee count at the end of Q3 FY26 stood at 226,379.
HCLTech's Q3 results reflect a mixed performance, with strong revenue growth offset by profit decline due to specific expenses. The company remains optimistic about its position in the market, particularly regarding AI and digital transformation opportunities.
HCLTech shares settled 0.35 per cent higher at Rs 1,668.10 on Monday.
