HCL Technologies reports FY2026 revenue up 4.2% but profit down 8%

HCL Technologies delivered a 4.2% YoY revenue rise in FY2026, but net profit slipped 8%, reflecting margin pressure from higher staffing costs and one‑time labour‑code expenses.

• Revenue: $14.664 bn (↑ 4.2% YoY) – driven by higher billed trade receivables (+$203 m) and unbilled receivables (+$100 m).
• Operating profit: $2.417 bn, down from $2.531 bn, indicating margin compression (operating margin fell to roughly 16.5%).
• Net profit (PAT): $1.878 bn (↓ 8.0% YoY); EPS fell 8% to $0.69.
• Cost pressures:
  • Cost of revenues rose to $9.763 bn (+$758 m), including a one‑time $96 m impact from new labour codes.
  • R&D expenses up to $227 m (incl. $2 m labour‑code impact).
  • SG&A increased to $1.766 bn (incl. $11 m labour‑code impact).
• Other income: Declined to $173 m from $280 m, mainly due to lower interest income and higher finance costs.
• Cash & liquidity: Cash & cash equivalents fell to $865 m (down from $964 m); operating cash flow slipped to $2.252 bn (vs $2.632 bn).
• Debt management: Short‑term borrowings cut sharply to $13 m (from $260 m) and long‑term borrowings halved to $4 m, improving the balance sheet.
• Dividend: Interim dividend reduced to ₹54 per share (previously ₹60), signalling a cautious cash‑allocation stance amid margin pressure.

Key operational highlights: Revenue growth stemmed from stronger receivables, while one‑time labour‑code costs and higher staffing expenses eroded profitability. The company trimmed acquisition spend, turning investing cash outflow to $(166) bn from $(581) bn.

No explicit management guidance was provided in the release.