HCL Tech Q3 results, dividend today: All eyes on FY26 guidance; here's earnings preview
HCL Tech Q3 results: Analysts also said investors would track commentary on discretionary spending, the pace of enterprise GenAI adoption and new opportunities arising from AI adoption.
- Jan 12, 2026,
- Updated Jan 12, 2026 8:30 AM IST
Noida-based HCL Technologies Ltd (HCL Tech) is expected to report a 5-9 per cent year-on-year (YoY) rise in net profit for the December quarter, supported by an 11-12 per cent year on year increase in net sales. Margins were seen expanding by over 100 basis points sequentially, though remaining lower on a year on year basis.
Some analysts expect HCL Technologies to narrow its guidance for FY26. They said investor focus would be on the trajectory of margin recovery towards the 18 to 19 per cent band, profitability in cost takeout and vendor consolidation deals, the deal pipeline and conversion timelines.
Analysts also said investors would track commentary on discretionary spending, the pace of enterprise GenAI adoption, new opportunities arising from AI adoption and the potential deflationary impact. In addition, drivers behind the company’s recent investments in engineering and R&D services and its products businesses were expected to be key discussion points.
Axis Securities sees HCL Tech to report a 8.7 per cent YoY rise in profit after tax at Rs 4,995 crore compared with Rs 4,594 crore in the corresponding quarter of last year. Revenue is seen climbing 11.7 per cent YoY to Rs 33,395 crore compared with Rs 29,890 crore in the same quarter last year. EBIT is seen jumping 9.6 per cent YoY to Rs 6,378 crore, with Ebit margin seen coming in at 19.1 per cent, up 187 basis points (bps) YoY but down 28 bps QoQ.
"We expect 4.5 per cent QoQ growth led by ER&D and software business seasonality. EBIT margins improve, led by currency tailwinds partially offset by wage hike.
Kotak Institutional Equities expects the IT firm to narrow overall revenue growth guidance to 3.5-4.5 per cent 3-5 per cent earlier and revise its services revenue growth to 4.5-5 per cent from 4-5 per cent for FY2026. The brokerage sees HCL tech to retain its 17-18 per cent EBIT margin guidance.
For the quarter, Kotak sees Q3 net profit rising 5 per cent YoY to Rs 4,835 crore on 11.5 per cent YoY rise in sales at Rs 33,338 crore. It sees the US deal win at $2.5 billion.
Systematix Shares and Stocks (India) Limited expects HCL Technologies Ltd to report 2.6 per cent YoY rise in net profit at Rs 4,708.10 crore for the December quarter on 11.4 per cent YoY jump in sales at Rs 33,294.80 crore. It sees Ebit rising 5.1 per cent YoY to Rs 6,116.40 crore, with Ebit margin falling 110 basis points YoY to 18.4 per cent (up 100 bps QoQ).
"HCL Tech may register a 2.1 per cent QoQ growth in its dollar revenue, attributed to continued traction in BFSI and hi-tech verticals along with seasonally strong quarters for the software business. EBIT Margin is estimated to grow by 100 bps QoQ led by positive seasonality in products business, AI led productivity benefits, and rupee depreciation," it said.
Meanwhile, HCL Tech will also consider declaring payment of fourth interim dividend for the financial year 2025-26.
Noida-based HCL Technologies Ltd (HCL Tech) is expected to report a 5-9 per cent year-on-year (YoY) rise in net profit for the December quarter, supported by an 11-12 per cent year on year increase in net sales. Margins were seen expanding by over 100 basis points sequentially, though remaining lower on a year on year basis.
Some analysts expect HCL Technologies to narrow its guidance for FY26. They said investor focus would be on the trajectory of margin recovery towards the 18 to 19 per cent band, profitability in cost takeout and vendor consolidation deals, the deal pipeline and conversion timelines.
Analysts also said investors would track commentary on discretionary spending, the pace of enterprise GenAI adoption, new opportunities arising from AI adoption and the potential deflationary impact. In addition, drivers behind the company’s recent investments in engineering and R&D services and its products businesses were expected to be key discussion points.
Axis Securities sees HCL Tech to report a 8.7 per cent YoY rise in profit after tax at Rs 4,995 crore compared with Rs 4,594 crore in the corresponding quarter of last year. Revenue is seen climbing 11.7 per cent YoY to Rs 33,395 crore compared with Rs 29,890 crore in the same quarter last year. EBIT is seen jumping 9.6 per cent YoY to Rs 6,378 crore, with Ebit margin seen coming in at 19.1 per cent, up 187 basis points (bps) YoY but down 28 bps QoQ.
"We expect 4.5 per cent QoQ growth led by ER&D and software business seasonality. EBIT margins improve, led by currency tailwinds partially offset by wage hike.
Kotak Institutional Equities expects the IT firm to narrow overall revenue growth guidance to 3.5-4.5 per cent 3-5 per cent earlier and revise its services revenue growth to 4.5-5 per cent from 4-5 per cent for FY2026. The brokerage sees HCL tech to retain its 17-18 per cent EBIT margin guidance.
For the quarter, Kotak sees Q3 net profit rising 5 per cent YoY to Rs 4,835 crore on 11.5 per cent YoY rise in sales at Rs 33,338 crore. It sees the US deal win at $2.5 billion.
Systematix Shares and Stocks (India) Limited expects HCL Technologies Ltd to report 2.6 per cent YoY rise in net profit at Rs 4,708.10 crore for the December quarter on 11.4 per cent YoY jump in sales at Rs 33,294.80 crore. It sees Ebit rising 5.1 per cent YoY to Rs 6,116.40 crore, with Ebit margin falling 110 basis points YoY to 18.4 per cent (up 100 bps QoQ).
"HCL Tech may register a 2.1 per cent QoQ growth in its dollar revenue, attributed to continued traction in BFSI and hi-tech verticals along with seasonally strong quarters for the software business. EBIT Margin is estimated to grow by 100 bps QoQ led by positive seasonality in products business, AI led productivity benefits, and rupee depreciation," it said.
Meanwhile, HCL Tech will also consider declaring payment of fourth interim dividend for the financial year 2025-26.