HCL Technologies has released its Q3 financial results, showing mixed performance with revenue growth offset by declining profitability. The IT services company's latest quarterly numbers reflect the challenging operating environment in the technology sector.

Financial Performance Overview

The company's Q3 results present a contrasting picture of revenue expansion alongside profit compression. While the top-line showed healthy growth, bottom-line performance disappointed market expectations.

Revenue Growth Momentum

The company demonstrated solid revenue performance in Q3, with total revenue reaching ₹33,874.00 crores compared to ₹31,942.00 crores in the previous quarter. This sequential growth of 6.05% indicates continued business momentum despite market headwinds. The revenue figure also surpassed analyst estimates of ₹33,360.00 crores, suggesting stronger-than-expected demand for the company's services.

Profitability Challenges

Despite revenue growth, HCL Technologies faced profitability pressures during the quarter. The consolidated net profit of ₹4,076.00 crores represents a decline from the previous quarter's ₹4,235.00 crores. More significantly, the profit figure fell considerably short of analyst expectations of ₹4,747.00 crores, missing estimates by approximately 14.13%.

Market Performance Analysis

The quarterly results highlight the complex dynamics facing the IT services sector. Key performance indicators from the quarter include:

• Sequential revenue growth of 6.05% quarter-on-quarter
• Net profit margin compression with 3.75% decline in absolute profit
• Revenue performance exceeding analyst expectations
• Profit realization falling short of market consensus

The divergence between revenue growth and profit performance suggests potential margin pressures or increased operational costs during the quarter. While the company maintained its growth trajectory in terms of business volume, translating this growth into proportional profitability remained challenging.

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.