HCL Technologies has announced an interim dividend of ₹12 per share for the third quarter of the ongoing financial year, along with its quarterly results that showed mixed performance with declining profits but revenue growth.

Dividend Declaration Details

The IT services company has set key dates for the dividend distribution to eligible shareholders:

The total dividend payout estimation of ₹3,256 crore is based on shareholding data last updated for the quarter ended September 2025.

Q3 Financial Performance

HCLTech's third quarter results for the current financial year presented a mixed picture, with the company reporting consolidated sequential performance that fell short of profit expectations while exceeding revenue estimates.

The company's net profit declined 3.8% quarter-on-quarter to ₹4,082 crore, missing analyst estimates by approximately 13%. However, revenue performance was stronger, growing 6% to ₹33,872 crore and surpassing analyst expectations of ₹33,201 crore.

Operational Efficiency Improvements

Despite the profit decline, HCLTech demonstrated improved operational efficiency with EBIT growing 14.2% to ₹6,285 crore, exceeding analyst estimates of ₹6,054 crore. The EBIT margin expanded to 18.6% from 17.2% in the previous quarter, indicating better cost management and operational leverage.

Stock Performance and Analyst Outlook

HCLTech shares closed 0.34% higher at ₹1,155.90 on the NSE, outperforming the benchmark Nifty which rose 0.42%. However, the stock has declined 16.18% over the past 12 months, reflecting broader market challenges.

Analyst sentiment remains cautiously optimistic with coverage from 47 analysts showing:

• Buy ratings: 23 analysts
• Hold ratings: 17 analysts
• Sell ratings: 7 analysts

The average 12-month analyst price target implies a potential upside of 2.0% from current levels, suggesting modest growth expectations for the stock.

HCL Technologies , India's third-largest IT services company, delivered mixed financial results for the quarter ended December (Q3FY26), reporting strong revenue growth alongside a decline in net profit due to one-time regulatory costs.

Financial Performance Overview

The company's financial performance for Q3FY26 showed contrasting trends across key metrics:

Revenue performance exceeded expectations, with the company achieving ₹33,872 crore in Q3FY26. In constant currency terms, revenue grew 4.2% quarter-on-quarter and 4.8% year-on-year, while service revenue increased 1.8% QoQ and 5.0% YoY.

Profitability Impact and Operational Metrics

Despite strong top-line growth, net profit declined to ₹4,076 crore from ₹4,591 crore in the previous year, representing an 11.21% decrease. This decline was primarily attributed to a one-time cost of ₹956 crore related to new labor code provisions introduced during the quarter.

On the operational front, HCL Technologies demonstrated improved efficiency with EBIT reaching ₹6,285 crore, marking an 8.0% year-on-year increase. EBIT margins expanded significantly to 18.6% from 17.2% in the September quarter, indicating strong operational recovery.

Advanced AI and Software Segment Growth

The company's strategic focus areas showed remarkable performance during the quarter:

Advanced AI services emerged as a key growth driver, with revenue surging 19.9% quarter-on-quarter in constant currency terms to reach $146 million. The HCL Software division also demonstrated strong momentum with 28.1% QoQ growth and 3.1% YoY growth in constant currency.

Management Commentary and Business Milestones

C. Vijayakumar, CEO & Managing Director of HCL Tech, highlighted the quarter's achievements: "Another standout quarter on all fronts, with revenue up 4.2% QoQ in constant currency and a strong recovery of operating margins to 18.6%. The robust revenue momentum in the quarter has enabled us to cross $15 billion in annualized revenues."

Key business highlights for the quarter included:

• New bookings reached an exceptional $3 billion
• Crossed the $15 billion annualized revenue milestone
• Services revenue grew 1.8% QoQ in constant currency
• Strong positioning to address evolving AI demands across industries

Vijayakumar further emphasized the company's strategic positioning: "HCL Software revenue grew sharply by 28.1% QoQ and 3.1% YoY in constant currency, supported by seasonality and our Data Intelligence portfolio. We are well positioned to address the evolving AI demands of our clients across industries and service lines."