HCL Technologies reported a marginal decline in its workforce during the December quarter of FY26, with total headcount falling by 261 employees to 2,26,379 despite continued hiring of fresh graduates. The Noida-headquartered IT services firm announced these figures on January 12, highlighting the complex dynamics shaping workforce management in the current demand environment.

Workforce Movement Details

The sequential decline occurred even as the company added 2,852 freshers during Q3FY26, indicating that overall workforce movement was influenced by natural attrition and selective rationalisation rather than a comprehensive hiring freeze.

Quarterly Hiring Trends

The Q3FY26 decline follows a strong hiring quarter in Q2FY26, when HCLTech had added 3,489 employees on a net basis. This came after the company reported a net decline of 269 employees in Q1FY26. During the September quarter, the company had onboarded 5,196 freshers, bringing total fresher additions in the first half of FY26 to 7,180.

Improved Employee Retention

Voluntary attrition showed continued improvement, falling to 12.4% on a last-twelve-month basis compared to 13.2% a year ago. This suggests the company is successfully retaining employees even as net headcount remained in negative territory during the quarter.

Industry Context and Strategic Focus

HCLTech's headcount movement contrasts with sharper workforce reductions seen at industry peers. The company has maintained a relatively stable employee base while continuing to invest in talent aligned to growth areas such as artificial intelligence and digital services. In Q2FY26, Tata Consultancy Services reported a net decline of 19,755 employees after announcing plans to reduce around 2% of its workforce.

Financial Performance Context

The headcount trend unfolded during a quarter when HCLTech reported strong revenue growth and margin recovery, though restructuring costs and one-time impact of new labour codes partly affected profitability. In the December quarter, the company reported year-on-year decline in net profit due to one-time items, even as revenue grew in double digits. The company also announced an interim dividend of ₹12.00 per share.

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.