HCLTech Reports 4% Rise in Q4 Net Profit to Rs 4,488 Crore, Misses Analyst Estimates

HCLTech Reports Smaller-Than-Expected Revenue and Net Profit in Q4 FY26

HCLTech, the country's third-largest IT services firm, posted a smaller-than-expected fourth-quarter revenue and net profit on April 21, as clients held back tech spends due to geopolitical headwinds. The company's consolidated net profit rose by 4% to Rs 4,488 crore for the quarter ended March 31, 2026, falling short of analysts' expectations of Rs 4,657 crore.

The IT services firm's consolidated revenue for the January-March quarter stood at Rs 33,981 crore, marking a 12.3% rise. However, this was lower than analysts' average expectation of Rs 34,236 crore, which also took into account the 4% fall of the Indian rupee against the US dollar in the January-March quarter.

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The company also declared an interim dividend of Rs 24 per share of Rs 2 face value. The record date for the payment of the interim dividend has been set as April 25, 2026, with the payment date scheduled for May 5, 2026.

In a statement, HCLTech's CEO and Managing Director, C Vijayakumar, attributed the company's performance to uncertain demand environment, softness in certain parts of the business, and delayed decision-making. However, the company's new AI-led service offerings are gaining traction, with annualized Advanced AI revenues crossing $620 million in Q4.

The IT major reported an increase in its workforce in the March quarter of FY26, despite tempering fresher hiring amid slowing demand conditions. HCLTech added a net 802 employees during the quarter, taking its total employee base to 2,27,181 at the end of Q4FY26. The sequential increase came despite the company adding 1,712 freshers during the quarter, indicating selective hiring rather than a broad-based push.

Voluntary attrition stood at 12.5 percent on a last-twelve-month basis, down from 13 percent a year ago, signaling improving employee retention.

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In its FY26 guidance, HCLTech slashed growth guidance to 1% to 4% YoY in constant currency (CC) terms for FY27, from 4% to 4.5% YoY CC in FY26. The company's estimated EBIT margin is expected to be in the range of 17.5-18.5 percent, with EBIT margin expected to be between 17.5% and 18.5%.