One-Time Provision Weighs on Quarterly Earnings
IT services major HCLTech reported an 11.2 percent year-on-year decline in consolidated net profit for the October to December quarter of FY26, as a one-time provision linked to the implementation of new labour codes impacted earnings.The company posted a net profit of ₹4,076 crore for the quarter, compared with ₹4,591 crore in the corresponding period last year. HCLTech stated that excluding the one-time labour code provision, net profit would have stood at ₹4,795 crore.
According to regulatory filings, the provision related to labour codes amounted to USD 82 million or ₹719 crore, while the impact on earnings before interest and taxes was USD 109 million or ₹956 crore.
Management Flags No Further Labour Code Impact
HCLTech’s Chief People Officer, Ram Sundararajan, said the company has fully accounted for all required provisions in the current quarter’s compensation changes. The management does not expect any further material incremental costs arising from the new labour regulations going forward.Revenue Growth Driven by AI and Engineering Services
Despite the profit decline, revenue performance remained strong. Revenue from operations rose 13.3 percent year-on-year to ₹33,872 crore, compared with ₹29,890 crore in Q3 FY25.The growth was supported by a sharp 19.9 percent sequential increase in Advanced AI revenue, which reached USD 146 million. Engineering and R&D services also recorded a healthy 10.8 percent year-on-year growth.
On a quarter-on-quarter basis, profit declined 3.7 percent, while revenue increased 6 percent.
USD 15 Billion Annualised Revenue Milestone Crossed
HCLTech reported quarterly revenue of USD 3.79 billion, helping the company cross the milestone of USD 15 billion in annualised revenue. Management attributed the performance to strong demand for AI-led offerings, including physical AI, robotics, AI factory solutions, custom silicon engineering for edge inferencing, and large-scale application modernisation programmes.Guidance Tightened, Deal Wins Remain Strong
The company narrowed its FY26 revenue growth guidance to 4 to 4.5 percent in constant currency terms, compared with the earlier range of 3 to 5 percent.Net new bookings during the quarter stood at USD 3 billion, marking a 43.5 percent increase from the year-ago period. The deal pipeline included a USD 473 million mega contract with a global apparel retailer, where HCLTech will act as a long-term AI-led technology partner.
The company also entered into a multi-year partnership with The Magnum Ice Cream Company to design, build, and manage future-ready IT infrastructure, deploying its AI Force platform across digital systems.
Software Business and Hiring Updates
HCLSoftware revenue grew 28.1 percent quarter-on-quarter and 3.1 percent year-on-year in constant currency, aided by seasonal strength and demand in the data intelligence portfolio.HCLTech added 2,852 freshers during the quarter, taking year-to-date fresher hiring beyond 10,000, higher than the total additions in the previous fiscal year. Management indicated that fresher hiring will remain elevated and continue into the fourth quarter.
The company also highlighted its elite engineer hiring strategy, with select technical talent being onboarded at annual compensation levels of ₹18 lakh to ₹22 lakh. Around 15 percent of new hires now fall under this category.
Total employee strength stood at 226,379 at the end of Q3 FY26, reflecting a net reduction of 261 employees sequentially. The company clarified that the labour code-related financial impact will not affect its hiring plans.
Interim Dividend and Share Price Movement
HCLTech’s board declared an interim dividend of ₹12 per equity share of face value ₹2 for FY26. The record date has been fixed as January 16, 2026, with payment scheduled for January 27, 2026.Shares of HCLTech closed at ₹1,668.10 on the BSE, up 0.35 percent from the previous close. The financial results were announced after market hours.
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