HCL Tech Q4 Net Profit Rises 8% to Rs 4,307 Crore; Declares Rs 18 Dividend

HCLTech, India’s third-largest IT services company, reported an 8% year-on-year increase in net profit to Rs 4,307 crore for the quarter ended March 31, 2025, up from Rs 3,986 crore in the same period last year.

“We grew the fastest among our peers for the second straight year, delivering on our FY25 guidance with 4.7% constant currency revenue growth and an 18.3% EBIT margin,” said CEO and MD C Vijayakumar in a statement. He added that HCL Software posted a 3.5% growth in constant currency, while the services business grew 0.7% sequentially, despite a volatile market environment.

Revenue from operations rose 6% year-on-year to Rs 30,246 crore in Q4FY25, compared to Rs 28,499 crore in the year-ago quarter.

The company announced a dividend of Rs 18 per share. Ahead of the earnings release, HCLTech shares closed 0.26% higher at Rs 1,486 apiece on the BSE.

HCLTech reported strong new bookings of $3 billion during the quarter, driven by its AI offerings and integrated go-to-market strategy. Vijayakumar said the company remains cautiously optimistic in the near term, while focusing on medium-term opportunities emerging from global uncertainties.

Upbeat Guidance for FY26

HCLTech has issued an optimistic outlook for FY26, projecting constant currency revenue growth of 2.0–5.0%, much higher compared to rivals like Infosys and Wipro.

HCL expects its services revenue to grow within the same range. The company anticipates an EBIT margin of 18.0–19.0% in FY26.

Vijayakumar, during the post-earnings press conference said that discretionary spending is expected to remain subdued. He added that geopolitical factors such as tariffs and deglobalisation are likely to affect IT services in the coming months.

For FY25, HCLTech reported total revenue of Rs 117,055 crore, reflecting a 6.5% increase, with constant currency revenue growth of 4.7%. EBIT rose 7.0% to Rs 21,420 crore, while net income grew 10.8% to Rs 17,390 crore.

Digital services revenue grew 8.6%, contributing 39.0% to the services segment, while the software business achieved an annual recurring revenue (ARR) of $1.03 billion, marking a 1.8% increase in constant currency terms.

As of March 31, 2025, HCLTech’s total employee count stood at 223,420, reflecting a net reduction of 4,061 due to a business divestiture, despite fresh hiring of 7,829 employees during the year. The company reported an attrition rate of 13.0% over the last twelve months.