HCL Technologies (HCLTECH) Q4 25/26 earnings summary

Executive summary

• FY26 marked the 50th anniversary, with recognition on Fortune's World's Most Admired Companies and S&P Global Sustainability Yearbook; audited consolidated and standalone results for FY26 were approved with unmodified audit opinions.

• FY26 revenue reached ₹130,144 crore ($14.7B), up 11.2% YoY; advanced AI annualized revenue crossed $620M.

• EBIT margin for FY26 was 17.2% (17.9% excluding restructuring), within guidance, despite a challenging demand environment.

• Net income for FY26 was ₹17,361 crore (consolidated net profit: ₹16,652 crore, impacted by one-time items); EPS at ₹64.01.

• Interim dividend of ₹24/share declared for FY27; FY26 dividend payout was ₹60/share (97.6% of net income).

Financial highlights

• Q4 FY26 revenue was ₹33,981 crore ($3.7B), up 12.3% YoY; Q4 net income was ₹4,488 crore.

• FY26 services revenue was $13.3B, up 4.8% YoY; software revenue was $1.4B, down 4.1% YoY.

• Net income margin for FY26 was 13.3%; FCF/NI was 107%.

• ROIC for FY26 was 40.3% (services: 47%, software: 42.6%).

• Cash and cash equivalents at year-end stood at ₹8,195 crore (consolidated); net cash position was ₹33,288 crore ($3,510M).

Outlook and guidance

• FY27 revenue growth guidance: 1%-4% YoY in constant currency; services: 1.5%-4.5%.

• EBIT margin guidance: 17.5%-18.5%.

• Guidance excludes pending acquisitions due to regulatory delays and assumes continued softness in discretionary spend.

• The company continues to monitor regulatory changes, including new labour codes.