HCLTech Beats Revenue Estimates, Lifts FY26 Growth Outlook

HCLTech Q3 Performance

HCL Technologies reported its third-quarter fiscal year 2026 results, revealing a robust 6% sequential increase in revenue to ₹33,872 crore. This figure slightly surpassed the ₹33,360 crore estimated by analysts surveyed by CNBC-TV18.
However, net profit saw a 3.8% decline quarter-on-quarter, settling at ₹4,076 crore. This drop fell short of the ₹4,747 crore market expectation and was largely attributed to a one-time provision of ₹956 crore associated with recently implemented labor code provisions.

Operational Resilience and Margins

Earnings Before Interest and Taxes (EBIT) reached ₹6,285 crore, exceeding the ₹6,090 crore forecast. Margins demonstrated improvement, climbing to 18.6% from 17.2% in the previous quarter. EBIT grew by 14.2% sequentially, indicating strong operational execution despite ongoing regulatory challenges.

Revised Outlook for FY26

Looking ahead, HCLTech has narrowed and raised its fiscal year 2026 constant currency (CC) revenue growth forecast. The company now anticipates CC revenue growth in the 4% to 4.5% range, a tighter band than the previous 3% to 5% projection. This signals increased confidence in its service delivery and demand pipeline.
Specifically for its services segment, HCLTech boosted its CC revenue growth guidance to 4.75%-5.25%, up from the prior 4%-5% range. This adjustment highlights sustained demand across critical service lines and business units.
The reported Q3 EBIT margin was impacted by 81 basis points due to restructuring costs, reflecting ongoing strategic adjustments aimed at optimizing future profitability.

Dividend Declared

Alongside its financial results, HCL Technologies declared an interim dividend of ₹12 per share, rewarding its shareholders.