IT services company HCLTech on Monday reported a 4.2% year-on-year (YoY) increase in consolidated net profit for the March quarter, with growth supported by steady revenue expansion despite a sequential decline.
HCLTech guided a revenue growth of 1.0% - 4.0% YoY in constant currency (CC) terms for FY27 and expects the services revenue growth to be between 1.5% - 4.5% YoY in CC.
The company posted a consolidated net profit of Rs 4,488 crore in Q4 FY26, compared with Rs 4,307 crore in the same period last year. On a sequential basis, net profit declined 6.4%.
Revenue from operations rose 12.3% YoY to Rs 33,981 crore in the quarter ended March 31. On a quarter-on-quarter (QoQ) basis, revenue increased marginally by 0.3%.
Chief executive officer and managing director C Vijayakumar said, “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 is reflected in annualized Advanced AI revenues crossing $620 million in Q4. Our #1 priority in FY27 is to ensure the company is positioned right to take advantage of AI opportunities for multi decade value creation.”
During the quarter, profitability was impacted by restructuring costs. Earnings before interest and tax (EBIT) stood at Rs 5,620 crore, with an operating margin of 16.5%. The EBIT margin included a 122 basis point impact from restructuring costs.
Deal wins remained steady during the quarter, with total contract value (TCV) of new deals at $1.9 billion.
On a constant currency (CC) basis, services revenue grew 4.2% YoY. Among geographies, the US grew 4.9%, Europe declined 2.9%, while the rest of the world rose 16.6% and India increased 5.3%.
The company announced a dividend of Rs 24 per equity share for the quarter. Total headcount stood at 227,181 at the end of the quarter, with a net addition of 802 employees. Trailing twelve-month attrition stood at 12.5%, compared with 13.0% a year earlier.
For the full financial year FY26, HCLTech reported revenue of Rs 130,144 crore, up 11.2% YoY, while net income stood at Rs 17,361 crore, down marginally by 0.2%.
Chairperson Roshni Nadar Malhotra said, “As the global economy pivots to the AI era, we are evolving our all-weather portfolio and empowering our people so that we are nimble in adapting to fast-changing technology cycles and create value for our stakeholders. We continue to invest in creating AI propositions that are well-positioned to leverage emerging long-term growth opportunities.”