HCLTech Q3 Results: AI Revenue Surges 20%, Headcount Drops
HCLTech, India’s third-largest IT services provider, announced its financial results for the third quarter of FY26 on January 12, 2026.
The company crossed a historic milestone by hitting $15 billion in annualized revenue, driven by explosive growth in its AI portfolio and seasonal strength in its software business.
However, similar to its industry peers, the company’s bottom line took a hit due to a one-time provisioning of ₹956 crore related to India’s new Labour Codes.
Financial Performance: Revenue Hits Record Highs
HCLTech reported a consolidated revenue of ₹33,872 crore, representing a 6.0% sequential increase and a robust 13.3% year-on-year (YoY) jump.
In constant currency (CC) terms, revenue grew 4.2% QoQ, exceeding analyst expectations.
Despite the top-line surge, net profit fell to ₹4,076 crore, declining 11.2% YoY and 3.7% QoQ.
| Metric | Q3 FY25 (YoY) | Q2 FY26 (QoQ) | Q3 FY26 (Current) |
| Revenue | ₹29,890 Cr | ₹31,942 Cr | ₹33,872 Cr |
| Net Profit | ₹4,591 Cr | ₹4,235 Cr | ₹4,076 Cr |
| EBIT Margin | 19.8% | 17.5% | 18.6% |
| Dividend Per Share | ₹12.00 | ₹12.00 | ₹12.00 |
The company narrowed its FY26 revenue growth guidance to 4.0%–4.5% in constant currency, up from the earlier range of 3%–5%.
HCLTech Headcount and Attrition: Selective Rationalization
HCLTech’s total headcount stood at 226,379 at the end of December 2025, reflecting a marginal net reduction of 261 employees.
This follows a strong Q2 where the company had added over 3,400 people.
The technical workforce saw a slight dip, while sales and support roles increased, indicating a shift toward front-end growth.
| Workforce Metric | Q3 FY25 | Q2 FY26 | Q3 FY26 |
| Total Headcount | 224,756 | 226,640 | 226,379 |
| LTM Attrition | 13.2% | 12.8% | 12.4% |
The company’s voluntary attrition continued its downward trend, reaching 12.4%, one of the lowest in the Indian IT sector.
New Partnerships and AI Breakthroughs
The quarter was defined by an “exceptionally high” booking of $3 billion in Total Contract Value (TCV).
- AI Dominance: Advanced AI revenue surged by 19.9% QoQ, reaching $146 million.
- Strategic Wins: HCLTech signed a landmark deal with Magnum Ice Cream for digital infrastructure modernization and a major agreement with a European food giant to build an AI-powered digital setup.
- Software Surge: HCLSoftware revenue grew 28.1% QoQ in CC terms, fueled by the data intelligence portfolio.
HCLTech Hiring Plans: Calibrated Freshers Onboarding
While the net headcount was negative, CEO C Vijayakumar clarified that the company is not in a hiring freeze.
HCLTech onboarded 2,852 freshers in Q3, though this was a 45% drop from the 5,196 freshers hired in Q2.
Management indicated that they will continue to hire selectively, focusing on “high-demand skills” in AI and Engineering Services, while using the current bench more effectively to maintain productivity.
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