HCL Tech Q4FY26 Results: QoQ and YoY Performance
On a quarter-on-quarter basis, consolidated revenue from operations remained largely flat at ₹33,981 crore in Q4FY26, compared with ₹33,872 crore in Q3FY26. Profit after tax (PAT) rose to ₹4,488 crore from ₹4,076 crore in the previous quarter, reflecting a growth of 10% QoQ.
On a year-on-year basis, consolidated revenue from operations rose 12.3% to ₹33,981 crore in Q4FY26 from ₹30,246 crore in Q4FY25. Profit after tax increased marginally to ₹4,488 crore from ₹ 4,307 crore in the corresponding quarter last year, up 4.2% YoY.
Segment-Wise Performance
The IT and Business Services segment remained the largest contributor to revenue, generating ₹25,443 crore during the quarter. Engineering and R&D Services followed with ₹5,783 crore, while HCL Software contributed ₹2,755 crore.
Exceptional Item and Margin Pressure
The quarter was affected by a one-time exceptional item related to labour code changes from earlier periods, which weighed on operating profitability. Profit before tax for the quarter came in at ₹5,702 crore.
At the same time, total expenses increased to ₹28,601 crore, led by higher employee costs and outsourcing expenses, indicating that the company continued to invest in growth and delivery capabilities.
Revenue Guidance Remains Conservative
The IT major has guided for FY27 company revenue growth in the range of 1 to 4% in constant currency (CC). The company said the broad guidance band reflects continued market volatility, weaker discretionary spending, and two client-specific situations where some ramp-downs are expected.
What the CEO Said on AI Revenue
HCLTech CEO and MD C. Vijayakumar termed the year as one of an uncertain demand environment.
"During the quarter, our performance came below our expectations due to softness in certain parts of our business, due to lower discretionary spending, 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 #1 priority in FY27 is to ensure the company is positioned right to take advantage of AI opportunities for multi-decade value creation," he said.
The company’s advanced AI revenue stood at $155 million in Q4, he said during the company’s earnings call.
Management also indicated that AI is creating an annual deflation of 2% to 3% in traditional segments. In simple terms, deals that were earlier priced at $100 million are now being priced closer to $80 million because of AI-led efficiencies. However, the company believes rising volumes of new AI deals are helping offset part of this pressure.
"Momentum across our advanced AI offerings and overall AI portfolio remains strong, reflecting the strength of our early bets and our continued focus on AI that scales from experimentation to measurable business impact. Our pipeline remains robust and broad-based across segments, verticals, and regions, with AI increasingly integral to nearly all deal conversations," CVK said.
Deal Wins Stay Strong
HCL Tech reported Total Contract Value (TCV) of new deal wins at $1,936 million for Q4 and $9,323 million for the full year FY26.
Dividend Announcement
The Board of Directors has declared an interim dividend of ₹24 per equity share for FY27. The record date has been fixed as April 25, 2026, while the payment date is May 5, 2026.
HCL Tech FY26 Annual Performance
For the full financial year FY26, revenue from operations stood at ₹1,30,144 crore, compared with ₹ 1,17,055 crore in FY25, reflecting growth of around 11.2%.
Profit after tax for the year came in at ₹16,642 crore, compared with ₹17,390 crore in FY25.
About HCL Technologies
HCL Technologies Ltd is a leading global IT services company with offerings across IT and business services, engineering and R&D, and software solutions. The company has a presence across multiple geographies and serves clients in industries such as financial services, manufacturing, healthcare, and technology.
