HCLTech reports 11% fall in net at `4,076 cr in Q3

Bengaluru: HCL Tech posted a sound set of third quarter results on Monday with the company increasing the lower end of its revenue guidance for the current financial year. The company posted a net profit of Rs 4,076 crore for December quarter, which was a fall of 11 per cent over the same period last year. The fall was attributed to increased outgo owing to new labour code.

Its revenue from operations stood at Rs 33,872, up 13 per cent over Rs 29,890 crore reported in the corresponding period of the last financial year. In dollar term, revenue was at $3.79 billion, an increase of 4.2 per cent sequentially in constant currency term.

Its advanced AI revenue was at $146 million, up 19.9 per cent over the previous quarter on constant currency term.

The Noida-headquartered company has revised its FY26 revenue guidance in constant currency (CC) term. The company now expects CC revenue to grow 4–4.5 per cent, from earlier 3–5 per cent range.

“The strong revenue momentum in the quarter has enabled us to cross $15 billion in annualized revenues. Our new bookings were exceptionally high at $3 billion,” C Vijayakumar, CEO of HCLTech said.Total contract value of new deals for the company was at $3 billion, which was a rise of 17 per cent over the previous quarter.

The Shiv Nadar-promoted company’s operating margin was at 18.6 per cent, which excluded 81 basis points one-time impact of new labour codes. The company expects its operating margin to be in the range of 17-18 per cent during FY26.

“Q3 EBIT margins, excluding the one-time impact of New Labour Codes, came in at 18.6 per cent (up 111 bps QoQ). Our dedicated efforts to improve cash conversion has yielded in FCF (free cash flow)/NI (net income) (LTM basis) remaining healthy at 120 per cent and we ended the quarter with our highest ever cash balance of Rs 34,306 crore,” Shiv Walia, Chief Financial Officer of HCLTech said.