HCLTech has announced a solid financial performance for its fourth quarter, reporting a consolidated net profit of ₹4,488 crore. This marks a 4.20% increase compared to the ₹4,307 crore posted in the same period last year.
The global IT services company also saw its revenue climb significantly, reaching ₹33,981 crore for the quarter, a substantial 12.35% rise from ₹30,246 crore in the corresponding quarter of the previous year.
Operational Highlights and Employee Growth
Operationally, HCLTech demonstrated robust growth. The company's total employee headcount reached 227,181, reflecting a net addition of 3,761 employees during the quarter. Furthermore, HCLTech brought in 11,744 freshers during this period, bolstering its workforce.
The trailing twelve-month (LTM) attrition rate showed an improvement, decreasing to 12.5% from 13.0% in the prior year's fourth quarter. The company also secured new deal wins with a total contract value (TCV) of $9,323 million, underscoring its market competitiveness.
In a move to reward shareholders, HCLTech declared a dividend of ₹24 per share. This marks the 93rd consecutive quarter the company has issued a dividend payout.
CEO's Commentary and Future Outlook
C Vijayakumar, CEO and Managing Director at HCLTech, commented on the results, noting that while revenue growth of 3.9% in constant currency was slightly below guidance, the 17.2% operating margin was within expectations amidst an uncertain demand environment. He acknowledged some softness in specific business areas due to reduced discretionary spending and delayed decision-making.
Vijayakumar highlighted the traction gained by HCLTech's new AI-led service offerings, with annualized Advanced AI revenues surpassing $620 million in Q4. He emphasized that the company's primary focus for FY27 is to strategically position itself to capitalize on AI opportunities for multi-decade value creation.
Looking ahead to FY27, HCLTech has provided guidance for revenue growth in the range of 1.0–4.0% year-on-year in constant currency terms. Services revenue is anticipated to grow between 1.5–4.5% YoY in constant currency, while the EBIT margin is projected to remain between 17.5–18.5%.
Following the announcements made post-market hours, HCLTech shares closed 0.92% higher at ₹1,441.55 on the day of the results.