BENGALURU: IT services company HCLTech on Monday reported an 11% year-on-year (YoY) drop in consolidated net profit for the December quarter, impacted by one-time costs related to the implementation of India’s new labour codes.
The company posted a consolidated net profit of Rs 4,076 crore in Q3 FY26, compared with Rs 4,591 crore in the same period last year. On a sequential basis, net profit declined 3.8%.
Revenue from operations rose 13.3% YoY to Rs 33,872 crore in the quarter ended December 31. On a quarter-on-quarter (QoQ) basis, revenue increased 6%.
During the quarter, profitability was affected by one-time costs arising from the adoption of new labour codes. Earnings before interest and tax (EBIT), excluding the one-time labour code impact, were reported at Rs 6,285 crore, with an operating margin of 18.6%. The EBIT margin also included an 81 basis point impact from restructuring costs.
Chief executive officer and managing director C Vijayakumar said; “Another standout quarter on all fronts, with revenue up 4.2% QoQ in constant currency along with a strong recovery of operating margin to 18.6%. The strong revenue momentum in the quarter has enabled us to cross $15B in annualised revenues. Our new bookings were exceptionally high at $3B.”
Deal wins remained strong during the quarter, with total contract value of new deals at $3 billion, up 17% sequentially and 43.5% YoY. Advanced AI services revenue rose 20% sequentially in constant currency (CC) terms.
On a CC basis, services revenue growth in India rose 16% YoY, Europe rose 4.6% and the US increased 1.5%. Revenue from the rest of the world grew 22.1%.
The company announced a dividend of Rs 12 per equity share.
Total headcount stood at 226,379 at the end of the quarter, with a net reduction of 261 employees. Trailing twelve-month attrition declined to 12.4%, compared with 13.2% a year earlier.
Ram Sundararajan, Chief People Officer, said that the company has so far added over 10,000 freshers in the fiscal year 2026, which is higher than about 8,000 hired in FY25