India’s third-largest IT services firm HCL Technologies on Monday reported an 11% year-on-year decline in consolidated net profit for the December quarter, weighed down by margin pressures, even as revenue growth remained resilient.
Net profit attributable to shareholders fell to ₹4,076 crore for the quarter ended December 2025, compared with ₹4,591 crore a year earlier. On a sequential basis, profit declined nearly 4% from ₹4,235 crore reported in the September quarter.
Revenue from operations rose 13% year-on-year to ₹33,872 crore, up from ₹29,890 crore in the corresponding period last year. The company’s topline increased 6% quarter-on-quarter from ₹31,942 crore in Q2FY26, supported by steady demand for digital and AI-led services.
The company announced an interim dividend of ₹12 per equity share for the financial year 2025–26. The record date for determining eligible shareholders has been fixed as January 16, 2026, with payment scheduled for January 27, 2026.
For the full year FY26, HCL Technologies guided for revenue growth of 4%–4.5% year-on-year in constant currency (CC) terms. Services revenue is expected to grow between 4.75% and 5.25% in CC, while the company maintained its EBIT margin guidance in the range of 17%–18%.
In terms of segment performance, services revenue in constant currency terms rose 1.8% quarter-on-quarter and 5% year-on-year. Digital services continued to be a key growth driver, with CC revenue increasing 17.7% year-on-year and accounting for 43.2% of total services revenue.
Advanced AI revenue stood at $146 million during the quarter, marking a 19.9% sequential increase in constant currency terms.
HCL Software revenue in constant currency terms rose 3.1% year-on-year, while annual recurring revenue (ARR) from the software business stood at $1.07 billion, up 0.6% year-on-year in CC terms.
The company said it remains focused on disciplined execution and margin management amid a cautious global demand environment.
