Home / Business and Economy / HCL Tech Revenue Surges, Profit Dips on One-Time Costs
HCL Tech Revenue Surges, Profit Dips on One-Time Costs
12 Jan
Summary
- HCL Technologies reported higher-than-expected Q3FY26 revenue of ₹33,872 crore.
- Net profit declined 11.21% due to a ₹956 crore one-time cost.
- Advanced AI revenue experienced a significant 19.9% QoQ surge.
HCL Technologies, India's third-largest IT firm, released its financial results for the quarter ending December 2025 (Q3FY26). The company surpassed expectations with a total revenue of ₹33,872 crore, marking a 6% increase from the previous quarter and a 13.3% rise year-on-year. This growth was bolstered by a substantial 19.9% quarter-on-quarter increase in revenue from Advanced AI services, which reached $146 million.
Despite the robust revenue performance, HCL Technologies reported a net profit of ₹4,076 crore, an 11.21% decrease compared to the previous period. The profit was impacted by a significant one-time expenditure of ₹956 crore, incurred due to the implementation of new labor code provisions. However, operating performance showed improvement, with EBIT rising 8% year-on-year to ₹6,285 crore and EBIT margins expanding to 18.6% from 17.2% in the September quarter.
The company's consistent revenue growth highlights its expanding market presence and the increasing demand for its services, particularly in the advanced AI sector. While the one-time costs presented a short-term challenge to profitability, the expansion in operating margins suggests underlying operational efficiencies and a positive outlook for future financial quarters. The fiscal year's third quarter concluded on December 31, 2025.
