Indian IT services major HCLTech announced its financial results for the October-December quarter of fiscal year 2026, presenting a mixed performance marked by strong revenue growth but a dip in profitability.
Quarterly Financial Performance: A Mixed Bag
The company reported a consolidated net profit of Rs 4,076 crore for the third quarter (Q3) of FY26. This figure represents an 11.2% decline compared to the Rs 4,591 crore profit it posted in the same period last year (Q3 FY25). On a sequential basis, profit saw a 3.7% drop from the previous quarter (Q2 FY26).
However, the story was different on the revenue front. HCLTech demonstrated robust top-line expansion, with revenue from operations climbing to Rs 33,872 crore. This is a significant 13.3% increase from the Rs 29,890 crore recorded in Q3 of the previous fiscal year. Compared to Q2 FY26, revenue grew by 6%.
Management Commentary and Key Milestones
Commenting on the quarterly performance, C Vijayakumar, Chief Executive Officer and Managing Director of HCLTech, highlighted a major achievement. "The strong revenue momentum in the quarter has enabled us to cross USD 15 billion in annualised revenues," he stated.
Vijayakumar pointed to exceptionally high new bookings worth USD 3 billion during the quarter. He also emphasised the standout performance of the software division. HCL Software revenue witnessed sharp growth of 28.1% quarter-on-quarter and 3.1% year-on-year in constant currency terms. This surge was attributed to seasonal factors and the strength of its data intelligence portfolio.
Looking ahead, the CEO expressed confidence in the company's positioning. "We are well-positioned to address evolving AI demand of our clients across industries and service lines," he added.
Workforce Expansion and Market Reaction
On the hiring front, HCLTech continued its expansion by onboarding 2,852 fresh graduates during Q3 FY26. This addition took the company's total employee headcount to 226,379 by the end of December 2024.
The financial results were declared after the closure of trading hours on Monday. On the Bombay Stock Exchange (BSE), shares of HCLTech ended the session at Rs 1,668.10 apiece, registering a marginal gain of 0.35% ahead of the earnings announcement.
The Noida-headquartered IT firm's results underscore the ongoing challenges in maintaining profitability margins amidst aggressive growth investments and a dynamic global demand environment for technology services.
