HCL Technologies reported a modest increase in profitability for the March quarter (Q4FY26), even as demand conditions remained uneven across segments. The company posted a consolidated net profit of Rs 4,488 crore for the quarter, marking a 4.20 per cent increase compared with Rs 4,307 crore in the year-ago period. On a sequential basis, profit rose 10.11 per cent from Rs 4,076 crore recorded in the December quarter (Q3FY26), reflecting improved operational performance over the previous quarter. The board of directors has also announced an interim dividend of Rs 24 per equity share of face value Rs 2 each, according to the company’s release.
Revenue from operations stood at Rs 33,981 crore in Q4FY26, registering a 12.35 per cent year-on-year increase from Rs 30,246 crore in the corresponding period last year. However, on a quarter-on-quarter basis, growth remained largely flat, with revenue only slightly higher than Rs 33,872 crore reported in Q3FY26.
In constant currency (CC) terms, revenue increased 2.4 per cent year-on-year but declined 3.3 per cent sequentially, indicating pressure from global macroeconomic uncertainties and cautious client spending.
Demand Softness Weighs On Performance
“HCL Tech delivered superior revenue growth of 3.9 per cent in constant currency, 10 bps below our guidance and 17.2 per cent operating margin within our guidance, in a year marked by an uncertain demand environment,” said C Vijayakumar, CEO and Managing Director, HCL Tech.
“During the quarter, our performance came below our expectations due to softness in certain parts of our business, due to lower discretionary spend and delayed decision making. Our new AI-led service offerings are getting traction in the market and are reflected in annualised Advanced AI revenues crossing $620 million in Q4. Our number one priority in FY27 is to ensure the company is positioned right to take advantage of AI opportunities for multi-decade value creation,” Vijayakumar said.
Despite near-term headwinds, the company’s investments in artificial intelligence-led services appear to be gaining traction. The firm reported that its annualised Advanced AI revenue crossed $620 million in the fourth quarter, signalling growing adoption of next-generation digital solutions.
