HCL Tech Q3 Results: PAT Drops By 11.2% YoY, Advanced AI Revenue Strong; FY26 Guidance Hiked - Key Highlights

HCL Technologies' net profit for the third quarter of FY26 dropped by over 11% YoY and 3.75% QoQ as the company set aside the statutory impact of new labour codes. In Q3FY26, the consolidated net profit attributed to owners is Rs 4,076 crore. On the other hand, revenue climbed by 13.32% YoY and 6.04% QoQ to Rs 33,872 crore in the quarter under review.

HCL Tech posted a net profit of Rs 4,235 crore in Q2FY26 and Rs 4,591 crore in Q3FY25. Meanwhile, its revenue stood at Rs 31,942 crore in Q2FY26 and Rs 29,890 crore in Q3FY25.

One of the key reasons why profitability was dented in Q3FY26 is that HCL recorded one-time impact of new labour codes to the tune of Rs 956 crore. EBIT margins expanded to 18.6% in Q3FY26 from 17.5% in Q2FY26 but was down from 19.5% in Q3FY25.

On the top-line front, the company's constant currency revenue growth stood at 4.2% QoQ and 4.8% YoY. While USD revenue climbed by 4.1% QoQ and 7.4% YoY to $3,793 million. Additionally, the company's Services revenue growth came in at 1.8% QoQ & up 5.0% YoY in constant currency, while Digital CC Revenue up 17.7% YoY which contributed 43.2% of the services. Its advanced AI revenue jumped by 19.9% QoQ constant currency to $146 million.

In the quarter, HCL reported total TCV deals of $3,006 million, registering a growth of 17.0% QoQ and 43.5% YoY.

"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," said Roshni Nadar Malhotra, Chairperson at HCL Tech.

Highlighting about the Q3 performance, C Vijayakumar, CEO & Managing Director of HCL Tech said, "Another standout quarter on all fronts, with revenue up 4.2% QoQ in constant currency along with a strong recovery of operating margin to 18.6%. The strong revenue momentum in the quarter has enabled us to cross $15B in annualized revenues. Our new bookings were exceptionally high at $3 billion."

He further added, "Our 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, driven by seasonality and data Intelligence portfolio. We are well positioned to address evolving AI demand of our clients across industries and service lines."

For the financial year 2025-26 guidance, HCL raised its revenue growth guidance to 4.0% - 4.5% YoY in CC, while services Revenue growth expected to be between 4.75% - 5.25% YoY in CC. Further, EBIT margin to be between 17.0% - 18.0%.