HCL Technologies delivered mixed financial results for the December quarter, with the IT services company reporting a decline in profitability despite strong revenue growth. The company's consolidated net profit attributable to owners fell 11% year-on-year, while operational revenue demonstrated robust double-digit expansion.

Financial Performance Overview

The company's Q3 FY26 financial metrics present a contrasting picture of growth and margin pressure:

The profit after tax figure represents earnings attributable to the owners of the company, indicating the core profitability available to shareholders after accounting for all expenses and taxes.

Revenue Growth Momentum

HCL Technologies demonstrated strong top-line performance with revenue from operations reaching ₹33,872.00 crore in Q3 FY26, marking a significant 13% increase from the ₹29,890.00 crore recorded in the corresponding quarter of the previous financial year. This revenue expansion reflects the company's ability to maintain business momentum and client engagement despite challenging market conditions.

Dividend Distribution

The company has announced shareholder returns through an interim dividend declaration for the current financial year:

The interim dividend announcement demonstrates the company's commitment to returning value to shareholders despite the quarterly profit decline. The record date of January 16, 2026, will determine shareholder eligibility, with actual payment scheduled for January 27, 2026.

Market Implications

The quarterly results highlight the complex operating environment facing IT services companies, where revenue growth and profitability pressures can coexist. HCL Technologies' ability to maintain strong revenue expansion while managing cost structures will be crucial for future performance. The dividend declaration signals management confidence in the company's cash generation capabilities and commitment to shareholder returns.

HCL Technologies announced its Q3 FY26 financial results on January 12, reporting a mixed performance with revenue growth offset by declining profitability. The IT services major's consolidated net profit fell 11% year-on-year to ₹4,076 crore for the quarter ending December 31, while revenue showed strong growth of 13.3% to ₹33,872 crore.

Financial Performance Analysis

The company's Q3 results presented a contrasting picture of revenue expansion alongside profit contraction. The following table summarizes the key financial metrics:

The results fell short of market expectations, with net profit coming in significantly below the CNBC-TV18 poll estimate of ₹4,747 crore. However, revenue marginally exceeded analyst projections of ₹33,360 crore.

Dividend Declaration

Alongside the quarterly results, HCL Technologies announced an interim dividend of ₹12 per equity share for FY26. The dividend distribution timeline is structured as follows:

Shareholders who hold shares as of the record date of January 16 will be eligible to receive the dividend, which will be paid on January 27.

Market Performance

HCLTech shares demonstrated resilience ahead of the results announcement, gaining 0.34% to close at ₹1,667 on NSE. However, the stock has faced headwinds over the longer term, declining more than 16% in the past year. The company currently maintains a market capitalisation of ₹4.51 lakh crore.

Key Takeaways

The Q3 FY26 results highlight several important aspects of HCL Technologies' current business trajectory:

• Strong revenue momentum with 13.3% year-on-year growth
• Profitability challenges reflected in 11% net profit decline
• Revenue performance exceeded analyst expectations despite profit shortfall
• Continued commitment to shareholder returns through interim dividend declaration
• Stock performance remains under pressure with significant annual decline

The mixed results underscore the complex operating environment facing the IT services sector, where companies are achieving revenue growth while managing margin pressures that impact overall profitability.