HCL Technologies Reports Strong Q3 EBIT Growth of 14.2% Quarter-on-Quarter

HCL Technologies delivered impressive financial results in Q3, demonstrating strong operational performance and exceeding market expectations. The IT services major reported significant growth in both absolute EBIT figures and margin expansion, reflecting robust business execution during the quarter.

Strong EBIT Performance

The company's Q3 EBIT performance showcased substantial growth momentum:

Metric	Q3 Performance	Previous Quarter	Analyst Estimate	Variance
EBIT	₹62.85 billion	₹55.02 billion	₹60.90 billion	+₹1.95 billion
Quarter-on-Quarter Growth	+14.24%	-	-	Beat estimate by 3.2%

The ₹62.85 billion EBIT represents a robust 14.24% increase from the previous quarter's ₹55.02 billion, significantly outperforming analyst expectations of ₹60.90 billion by ₹1.95 billion.

Margin Expansion Highlights Operational Excellence

HCL Technologies demonstrated strong margin discipline with notable improvements in operational efficiency:

Parameter	Q3 Result	Previous Quarter	Estimate	Improvement
EBIT Margin	18.56%	17.22%	18.30%	+134 basis points
Margin Beat	+26 basis points	-	vs. estimate	-

The EBIT margin expansion of 134 basis points quarter-on-quarter to 18.56% indicates effective cost management and operational leverage. The margin also exceeded analyst estimates of 18.30% by 26 basis points, highlighting the company's ability to maintain pricing discipline while optimizing operational costs.

Performance Analysis

The strong Q3 results reflect HCL Technologies' operational strength across multiple dimensions. The company's ability to exceed both revenue conversion expectations and margin targets demonstrates effective business execution. The quarter-on-quarter EBIT growth of over 14% indicates robust demand environment and successful project delivery.

The margin improvement from 17.22% to 18.56% suggests the company successfully managed cost pressures while maintaining competitive positioning. This performance indicates strong operational leverage and effective resource utilization during the quarter.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.37%	+1.67%	+0.60%	-0.38%	-13.81%	+58.05%

HCL Technologies has announced a dividend distribution of ₹12 per equity share for the current fiscal year, alongside the release of its quarterly results for the October-December 2025 period (Q3 FY26). The announcement was made on Monday as part of the ongoing earnings season.

Dividend Details

The IT major has declared the dividend for equity shares with a face value of ₹2 each. The record date for the dividend payment has been set for January 16, which will determine the eligibility of shareholders for the payout.

Parameter:	Details
Dividend Amount:	₹12 per equity share
Face Value:	₹2 per share
Record Date:	January 16
Reporting Period:	Q3 FY26 (October-December 2025)

Quarterly Results Release

The dividend announcement coincides with HCL Technologies' quarterly results for Q3 FY26, covering the October-December 2025 period. This timing aligns with the company's practice of announcing shareholder returns alongside its financial performance updates during the earnings season.

The dividend declaration reflects the company's commitment to providing returns to shareholders while maintaining its financial performance in the competitive IT services sector.