Enclosed please find an Investor Release dated April 21, 2026 on the financial results of the Company for the quarter and year ended March 31, 2026.
RESULTS
◆ Monitor Closely
MEDIUM RISK
📅 Filed on BSE: 21 Apr 2026, 06:08 PM IST · BSE ID: dab131ce-edd3-48ad-aef3-09a9ee9c7fc5
View Original BSE Filing (PDF)
💡
In Simple Terms
HCL Technologies reported FY26 results: revenue grew 11.2% but profit barely moved due to unexpected labour cost charges.
🤖 AI Summary
- FY26 INR revenue ₹130,144 Crore up 11.2% YoY; constant currency growth 3.9%
- Net income ₹17,361 Crore down 0.2% YoY; EBIT ₹22,397 Crore up 4.6%
- Labour code one-time impact: ₹956 Crore at EBIT, ₹719 Crore at net income
- Advanced AI annualized revenue crossed $620M; HCLSoftware ARR at $1.05B
- FY27 guidance: company revenue growth 1.0-4.0% constant currency; EBIT margin 17.5-18.5%
🔢 Key Numbers — exact figures from BSE filing, not rounded
FY26 INR Revenue
₹130,144 Crore
11.2%
FY26 Constant Currency Revenue Growth
3.9%
FY26 USD Revenue
$14,664M
6.0%
FY26 Net Income
₹17,361 Crore
-0.2%
FY26 EBIT
₹22,397 Crore
4.6%
FY26 EBIT Margin
17.2% (17.9% excl. restructuring)
Labour Code One-Time Impact (EBIT)
₹956 Crore
FY26 EPS (Diluted)
₹64.01
-0.1%
FY26 Full Year Dividend
₹60/share
Q4 FY26 INR Revenue
₹33,981 Crore
12.3% YoY; -3.3% QoQ CC
Advanced AI Annualized Revenue
$620M
HCLSoftware ARR
$1.05B
-0.5% CC YoY
FY26 TCV (New Deal Wins)
$9,323M
Total Headcount
227,181
3,761 net additions in FY26
LTM Attrition
12.5%
down from 13.0% in Q4 FY25
Company ROIC
40.3%
up 235 bps YoY
Services ROIC
47.0%
up 155 bps YoY
🏢 How This Affects the Company
Services segment constant currency revenue grew 4.8% YoY. Advanced AI annualized revenue reached $620M in Q4. HCLSoftware segment declined 4.1% constant currency YoY, though ARR remained stable at $1.05B. TCV (new deal wins) for FY26 totalled $9,323M.
EBIT margin at 17.2% (17.9% excluding restructuring). Net income margin 13.3% (13.8% excluding restructuring and labour code impacts). ROIC increased 235 basis points YoY to 40.3% for company and 155 basis points to 47.0% for services. FCF/NI at 107%. Full year dividend declared at ₹60/share with payout ratio 97.6%.
Headcount expanded to 227,181 with net addition of 3,761 in FY26. Added 11,744 freshers during the year. LTM attrition improved to 12.5% from 13.0% in Q4 FY25. Q4 added 1,712 freshers. Cost pressures including labour code compliance impacted margins.
Q4 revenue growth in constant currency declined 3.3% QoQ and grew only 2.4% YoY, signalling demand softness. HCLSoftware segment declined 14.1% YoY in constant currency, reflecting market headwinds. One-time labour code impact of ₹956 Crore created earnings pressure not fully offset by operational improvements.
👥 What This Means For Shareholders
✅
Action Required
Shareholders receiving dividend: ₹24/share for Q4 announced; ₹60/share total for FY26. Verify share holdings in demat before dividend record date.
👤
Who Is Affected
All equity shareholders receive ₹60/share full year dividend, representing 97.6% payout ratio of diluted EPS of ₹64.01. This is 93rd consecutive quarterly dividend.
🔍
Management Signal
Board's maintenance of 97.6% payout ratio despite profit decline and labour code charges signals confidence in cash generation. Conservative FY27 guidance reflects realistic assessment of near-term demand environment.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
Q1 FY27 results: verify if revenue sustains 1.0-4.0% constant currency guidance range
Advanced AI revenue trajectory: confirm if annualized $620M sustains and accelerates through FY27
HCLSoftware stabilization: monitor if ARR recovery materializes above $1.05B in Q1 FY27
MEDIUM RISK
Q4 constant currency decline 3.3% QoQ and HCLSoftware 14.1% YoY fall indicate demand pressures. FY27 guidance of 1.0-4.0% growth suggests management expects continued uncertainty.
💡 Investor Takeaway
HCL Technologies delivered FY26 INR revenue of ₹130,144 Crore (+11.2% YoY) but constant currency growth of 3.9% YoY reveals underlying demand softness. One-time labour code charge of ₹956 Crore masked operational improvements. ROIC expanded 235 basis points. FY27 guidance of 1.0-4.0% constant currency growth signals cautious demand environment.
⚖️ Strengths & Concerns
✅ Positives
- ROIC expansion: Company ROIC up 235 bps to 40.3%; Services ROIC up 155 bps to 47.0% YoY
- Cash generation robust: FCF/NI at 107% on LTM basis; OCF/NI at 115%; maintaining 97.6% dividend payout ratio
⚠️ Concerns
- Q4 constant currency revenue declined 3.3% QoQ, indicating business momentum loss in final quarter
- HCLSoftware segment fell 14.1% constant currency YoY; ARR down 0.5% despite stable absolute value at $1.05B
📅 Company Track Record
HCL Technologies showed FY25 INR revenue ₹117,055 Crore (+8.3%) with net income ₹15,702 Crore. FY24 revenue ₹109,913 Crore (+6.5%), FY23 ₹101,456 Crore (+13.6%), FY22 ₹85,651 Crore. Diluted EPS FY25 ₹64.09, FY24 ₹57.86, FY23 ₹54.79, FY22 ₹49.77. This is 93rd consecutive quarterly dividend.
Based on publicly available historical data. For context only.