HCL Infosystems FY26 Net Loss Rises to Rs 3,291 Lakhs

HCL Infosystems Limited has announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The board of directors approved the results at its meeting held on May 20, 2026. The company reported a consolidated net loss of Rs 3,291 lakhs for the financial year, compared to a net loss of Rs 2,111 lakhs in the previous year. Total income for the year stood at Rs 5,453 lakhs, a decrease from Rs 5,008 lakhs in the prior year.

Financial Performance

The loss before tax for the year increased to Rs 3,291 lakhs from Rs 2,111 lakhs. The company attributed the widened loss primarily to operational challenges and exceptional items. Exceptional items for the year included a one-time provision for New Labour Codes amounting to Rs 166 lakhs in the consolidated results. Finance costs included an interest expense of Rs 463.12 lakhs recognized on Non-Convertible Debentures (NCDs) using an Effective Interest Rate of 8% per annum.

Metric	Standalone FY26 (Rs. In Lakhs)	Consolidated FY26 (Rs. In Lakhs)
Total Income	1,912	5,453
Total Expenses	2,468	8,583
Net Loss for the period	(3,344)	(3,291)

Operational Highlights

For the fourth quarter, revenue from operations stood at Rs 528 lakhs, while other income was Rs 781 lakhs. The loss before tax for the quarter was Rs 1,317 lakhs. The company continues to face operational challenges, including delayed receipts on system integration contracts. Legal expenses related to ongoing litigations and legacy issues amounted to Rs 2,232 lakhs during the year in the consolidated financials.

Key Developments

The company issued 35,50,000 unlisted, unsecured redeemable NCDs aggregating Rs 35,500 lakhs to HCL Capital Private Limited. These NCDs carry a coupon rate of 0.001% per annum and have a tenure of 10 years, though they are classified as current liabilities due to the holder's option to demand repayment after twelve months and five days. The proceeds were utilized to repay earlier loans. Additionally, the company received a favorable arbitration award of Rs 10,281 lakhs against UIDAI, though the financial impact is not recognized pending the finality of the award.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.60%	-1.52%	-9.31%	-20.04%	-42.47%	+25.70%

HCL Infosystems has received a refund amounting to ₹26.35 crores from the Rajasthan Value Added Tax (VAT) authorities. The refund pertains to the pre-deposit made in connection with a matter relating to the taxability of batteries sold in composite packs along with mobile phones in the State of Rajasthan. The company disclosed this development through an intimation filed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Refund

The following table summarizes the key parameters of this development:

Parameter:	Details
Refund Amount:	₹26.35 crores
Issuing Authority:	Rajasthan VAT Authorities
Nature of Receipt:	Pre-deposit Refund
Matter:	Taxability of batteries sold in composite packs with mobile phones
Tax Periods:	2009-10 and 2011-12
Disclosure Regulation:	Regulation 30, SEBI LODR Regulations, 2015

Significance of the Development

The receipt of ₹26.35 crores from the Rajasthan VAT authorities reflects the resolution of a long-standing tax dispute concerning the taxability of batteries sold as part of composite packs with mobile phones in the state. VAT refunds of this magnitude can have a meaningful impact on a company's working capital and overall financial position. This outcome underscores HCL Infosystems' active engagement with state-level tax compliance and dispute resolution frameworks.