HCLTech Q3 profit dips 11% YoY to ₹4,082 crore; declares ₹12 dividend
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HCL Technologies (HCLTech) on Monday reported an 11.2% year-on-year (YoY) decline in its consolidated net profit, which stood at ₹4,082 crore for the third quarter ended December 31, 2025. The Noida-based IT services firm had reported a net profit of ₹4,594 crore in the corresponding quarter of the previous fiscal. Despite the dip in bottom-line performance, the company showed strong top-line momentum, with consolidated revenue rising 13.3% to ₹33,872 crore, compared to ₹29,890 crore in Q3 FY25.
Impact of new labour codes
The contraction in profit was primarily attributed to a one-time exceptional charge. HCLTech recorded a provision of ₹956 crore due to the implementation of India's New Labour Codes, effective November 21, 2025. Under accounting standards, this legislative change required the immediate recognition of past service costs for employee benefits as an expense in the current reporting period.
Segment growth and acquisitions
Growth during the quarter was broad-based across segments. The IT and Business Services division led the performance with revenue of ₹24,504 crore. The Engineering and R&D (ER&D) services segment contributed ₹5,676 crore, while HCL Software reported ₹3,692 crore.
Aimed at future growth, the company mentioned two major definitive agreements signed in December 2025:
January 2026
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Telco Solutions: The acquisition of HPE’s Telco Solutions business for $160 million (~₹1,438 crore) to strengthen its AI-led network propositions.
Business Intelligence: The acquisition of the Jaspersoft business unit for $240 million (~₹2,157 crore), providing a comprehensive reporting platform. Both transactions are expected to close within the next six months.
Workforce and guidance
As of December 31, 2025, HCLTech’s total headcount stood at 2,26,379 employees. While the company saw a slight net reduction of 261 employees during the quarter, it has added 2,852 freshers during Q3 FY26. The company's last twelve months (LTM) attrition rate improved to 12.4%, down from 13.2% a year ago.
For the full fiscal year 2026, the company maintained its revenue growth guidance of 4% to 4.5% in constant currency terms, with an EBIT margin expected between 17% and 18%.
Interim dividend
The board declared an interim dividend of ₹12 per equity share. The record date is fixed for January 16, 2026, with payment scheduled for January 27, 2026.
The shares of HCLTech ended 0.34% higher at ₹1,667 apiece on the national stock exchange on December 12. The company's shares have fallen over 16% in the last 12 months, heavily underperforming the benchmark Nifty50 index which has risen close to 12% during the period.