HCL Technologies Q4 Net Profit Up 8%, Forecasts FY26 Revenue Growth Between 2%-5%
HCL Technologies
HCL Technologies Q4: Net Profit Rises 8% YoY, FY26 Revenue Growth Expected in the Range of 2%-5%
HCL Technologies, one of India’s largest and most prominent IT services companies, delivered strong financial results for the fourth quarter of the fiscal year 2024-25 (Q4 FY25), showcasing robust year-on-year (YoY) growth in net profit and steady revenue performance despite the challenges of a volatile global economy.
On Tuesday, April 22, 2025, the company reported a net profit of ₹4,307 crore for the quarter ending March 2025.
This represents an 8.05% increase compared to ₹3,986 crore in the same period last year, reaffirming the company’s ability to generate consistent growth amidst fluctuating market conditions.
However, on a sequential basis, the company saw a slight decline of 6.18%, down from ₹4,591 crore in the preceding quarter.
This sequential drop is largely attributed to seasonality factors and macroeconomic uncertainties impacting the IT services industry.
Solid Revenue Performance
HCL Technologies posted a revenue of ₹30,246 crore for Q4 FY25, reflecting a 6.13% YoY increase. This performance is in line with the company’s ongoing efforts to expand its service offerings and deepen its relationships with clients across multiple industries.
When compared to the previous quarter (Q3 FY25), the company saw a more modest revenue growth of 1.19%.
In US dollar terms, the company reported a revenue of $3,498 million for Q4, which represents a marginal decline of 1% sequentially but a solid 2% increase compared to the same period in the previous year.
On a constant currency basis, the revenue from operations showed a small decline of 0.8% QoQ, but the company was still able to achieve a 2.9% YoY revenue growth, underscoring the strength of HCL Tech’s global client base and its strategic focus on long-term business sustainability.
Geographic and Sectoral Breakdown
Geographically, HCL Technologies continued to see its largest market contribution come from the Americas, accounting for 63.9% of its total revenue.
Europe remained a strong secondary market, contributing 29.2%, while the remaining 6.9% of revenue came from the Rest of the World.
This geographic distribution highlights HCL Tech’s balanced exposure across major global markets and its ability to adapt to regional economic dynamics.
In terms of sectoral contributions, the company’s diverse portfolio of services across various industries continues to be a key driver of its growth.
The financial services vertical emerged as the largest contributor, accounting for 21.1% of the total revenue, followed by manufacturing at 18.6%, and life sciences and healthcare at 14.7%.
The telecommunications, media, publishing, and entertainment (TMPE) sector contributed 13.9%, while technology and services accounted for 13.4% of the revenue mix.
The retail and consumer packaged goods (CPG) sector brought in 9.7%, and public services rounded out the mix with 8.6%.
This diversified revenue base reflects the company’s ongoing efforts to reduce dependency on any single vertical, while also showcasing its broad capabilities across key global industries.
Outlook for FY26
Looking ahead to the next fiscal year, HCL Technologies provided a cautious but optimistic revenue growth guidance for FY26.
The company expects its revenue to grow in the range of 2%-5%, which aligns with the broader IT services industry’s outlook in the current macroeconomic environment.
Given the ongoing challenges such as geopolitical risks, inflationary pressures, and market volatility, the company’s forecast reflects a conservative approach, with a focus on sustainable growth and cost efficiency.
The company’s services revenue is expected to grow within the same 2%-5% range, with the EBIT (Earnings Before Interest and Tax) margin forecasted to remain between 18%-19%.
This projection indicates that HCL Technologies plans to maintain healthy profitability while navigating market uncertainties.
New Deals and Strategic Growth Areas
HCL Technologies continued to secure new business during the quarter, highlighting its strong market position and its clients’ trust in its capabilities.
The company announced that it had won new deals worth a total of $2,995 million during Q4. This includes several large multi-year contracts that will contribute to the company’s revenue base in the coming years.
A key area of focus for HCL Technologies has been the integration of Artificial Intelligence (AI) and digital solutions into its service offerings.
With AI continuing to transform industries globally, HCL Tech has made significant investments in AI-powered solutions and integrated go-to-market strategies.
This has enabled the company to leverage emerging technologies and help clients drive efficiencies and innovations in their operations.
“We saw very strong new bookings of $3 billion this quarter, catalyzed by our AI propositions and the integrated GTM (Go-To-Market) organization that we established at the start of the fiscal year,” said C Vijayakumar, CEO & Managing Director of HCL Technologies.
The company’s AI offerings, which include automation, data analytics, and machine learning solutions, are expected to be key growth drivers in the years ahead, particularly as enterprises continue to prioritize digital transformation initiatives.
Dividend and Employee Growth
In addition to its strong financial performance, HCL Technologies also announced a dividend of ₹18 per share, marking the 89th consecutive quarter of dividend payouts.
This highlights the company’s commitment to delivering value to shareholders while maintaining its focus on long-term business growth.
The company also saw growth in its workforce, ending Q4 FY25 with 223,420 employees. During the quarter, HCL Technologies added 2,665 new employees, of which 1,805 were freshers, emphasizing the company’s commitment to talent acquisition and development in line with its expanding global footprint and service capabilities.
CEO’s Remarks on Performance
Commenting on the company’s performance, C Vijayakumar, CEO & Managing Director, said, “HCLTech grew the fastest among our peers for the second consecutive year, thanks to our disciplined execution and strong business strategy.
We delivered on our FY25 guidance with revenue growth of 4.7% in constant currency and an EBIT margin of 18.3%.
The strong demand for our services, coupled with a disciplined approach to cost management, has enabled us to continue growing even in challenging times.
We are optimistic about our medium-term prospects, particularly as we leverage emerging technologies like AI to drive further innovation.”
Stock Performance
Shares of HCL Technologies closed 0.26% higher at ₹1,485.90 on the day of the earnings announcement, reflecting investor confidence in the company’s financial health and long-term strategy.
