HCL Technologies Limited – FY2026 Financial Results Overview
Key Highlights (FY2026, 31 Mar 2026)
- Revenue: ₹34,303 cr (₹33,981 cr from operations) – +12% YoY
- Profit after tax: ₹4,490 cr – +4% YoY
- EPS (Basic/Diluted): ₹16.59 / ₹16.56
- Dividend: ₹54 per share for the FY (₹12 interim + ₹42 additional)
- Cash & cash equivalents: ₹8,195 cr (stable year‑on‑year)
- Net debt: ₹159 cr (borrowings ₹159 cr) – Debt‑to‑Equity ≈ 0.08
- Operating cash flow: ₹19,975 cr
- One‑time Labour Code expense: ₹956 cr (exceptional item) – non‑recurring
1. Financial Performance
| Metric | FY2026 | FY2025 | YoY Change |
|---|---|---|---|
| Revenue (operations) | ₹33,981 cr | ₹30,246 cr | +12% |
| Total income (incl. other) | ₹34,303 cr | ₹30,695 cr | +12% |
| Profit before tax | ₹5,702 cr | ₹5,735 cr | –0.6% |
| Profit after tax | ₹4,490 cr | ₹4,309 cr | +4% |
| EPS (basic) | ₹16.59 | ₹15.90 | +4.4% |
| Dividend per share (FY) | ₹54 | ₹12 (interim) | +350% |
The modest dip in profit before tax reflects the ₹956 cr exceptional charge for the new Labour Codes, offset by higher revenue and stable cost discipline.
2. 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 posted double‑digit revenue growth, with the IT & Business Services segment remaining the primary profit driver.
3. Balance Sheet & Liquidity
- Total assets: ₹116,258 cr (↑ 10% YoY)
- Equity: ₹75,197 cr (↑ 8% YoY)
- Cash & cash equivalents: ₹8,195 cr (virtually unchanged)
- Borrowings: ₹159 cr (down from ₹2,221 cr a year ago)
- Leases: Significant but manageable at ₹4,? cr (non‑current + current).
The company maintains a strong liquidity cushion and a very low leverage profile, giving it flexibility for strategic investments or share buy‑backs.
4. Cash Flow Statement
- Operating cash flow: ₹19.98 bn (≈ 44% of profit after tax)
- Investing cash flow: –₹1.47 bn (mainly capex and investment portfolio adjustments)
- Financing cash flow: –₹19.37 bn (driven by dividend payout and treasury‑share buy‑back)
- Net cash change: –₹0.87 bn, leaving cash virtually unchanged.
5. Dividend Policy
The Board approved an interim dividend of ₹12 per share and a total FY dividend of ₹54 per share, reflecting confidence in cash generation and a commitment to returning value to shareholders.
6. Regulatory Impact – New Labour Codes
- Effective 21 Nov 2025, the Government consolidated multiple labour statutes into four Labour Codes.
- HCL recognised a one‑time employee‑benefit cost of ₹956 cr (with a tax benefit of ₹237 cr) in FY2026.
- Management expects no further material one‑off impact; future cost changes will be accounted for under normal expense recognition.
7. Outlook & Guidance
- Revenue trajectory: Continued demand for digital transformation, cloud, and engineering services supports a mid‑single‑digit to high‑single‑digit revenue growth outlook.
- Profitability: With the Labour Code expense now a one‑off, EBITDA margins are likely to improve year‑on‑year.
- Capital allocation: Strong cash and low debt enable potential strategic acquisitions, increased R&D spend, or higher share buy‑backs.
- Risks: Implementation of Labour Codes could affect employee cost structures; macro‑economic slowdown in key markets may temper order inflow.
8. Bottom Line for Investors
HCL Technologies delivered a solid FY2026 with revenue growth, higher EPS, and a generous dividend despite a sizable one‑off regulatory charge. The balance sheet is robust, leverage is minimal, and cash generation remains strong. Assuming no adverse regulatory or macro‑economic shocks, the company is well‑positioned for sustained earnings growth and shareholder returns.