HCL Technologies Reports FY2026 Revenue Up 12% and PAT Up 4%

HCL Technologies posted solid FY2026 growth, with revenue up 12% YoY and profit after tax rising 4% despite a large one‑off labour‑code charge; cash remains strong and dividend was boosted sharply.

• Revenue: ₹34,303 cr (₹33,981 cr from operations) – +12% YoY
• Profit after tax (PAT): ₹4,490 cr – +4% YoY (EPS ₹16.59, up 4.4%)
• Profit before tax: ₹5,702 cr, down 0.6% YoY due to a ₹956 cr one‑time Labour Code expense, indicating slight margin pressure.
• Operating cash flow: ₹19.98 bn, roughly 44% of PAT, underscoring robust cash generation.
• Liquidity & leverage: Cash & cash equivalents ₹8,195 cr (flat YoY); net debt ₹159 cr with a debt‑to‑equity of ~0.08, reflecting a very low leverage profile.
• Dividend: ₹54 per share for the FY (₹12 interim + ₹42 additional), a 350% increase from the prior year, highlighting confidence in cash flow.
• Segment performance:
  • IT & Business Services: Revenue ₹25,443 cr (≈73% of total) and segment profit ₹4,149 cr.
  • Engineering & R&D Services: Revenue ₹5,783 cr, profit ₹900 cr.
  • HCL Software: Revenue ₹2,755 cr, profit ₹571 cr.
    All three pillars delivered double‑digit revenue growth.
• Balance sheet: Total assets ₹116,258 cr (+10% YoY); equity ₹75,197 cr (+8% YoY).
• Outlook (qualitative guidance): Management expects mid‑single‑digit to high‑single‑digit revenue growth going forward and improving EBITDA margins now that the Labour Code expense is a one‑off. Strong cash and minimal debt provide flexibility for strategic investments or higher share buy‑backs.