HCL Technologies has reported an 8% year-on-year increase in consolidated net profit, amounting to ₹4,307 crore for the fourth quarter of the financial year 2025. This growth, reported on April 22, 2025, comes despite a sequential decline of 6.2% in profit compared to the previous quarter. The company’s revenue from operations also saw a positive trend, rising 6% year-on-year to ₹30,246 crore, although it increased only 1.2% quarter-on-quarter.
According to C Vijayakumar, CEO and Managing Director of HCL Tech, "HCL Tech grew the fastest among our peers for the second year in a row as we witnessed yet another year of disciplined execution. We delivered on our FY25 guidance with revenue growth of 4.7% in constant currency (CC) and EBIT margin of 18.3%." This performance highlights the company's strong operational execution amid a volatile market environment.
In terms of specific segments, HCL's services revenue in constant currency terms increased by 0.7% quarter-on-quarter and 2.7% year-on-year. The digital services segment was particularly robust, contributing 40.7% of total services revenue and growing 12.6% year-on-year. This aligns with the company's strategic focus on digital transformation and innovation, which has been a significant driver for new business.
For the entire fiscal year 2025, HCL Technologies reported a net income of ₹17,390 crore, reflecting a 10.8% increase from the previous year. The company's revenue for the full year climbed to ₹1.17 lakh crore, a 6% increase, while the constant currency revenue growth stood at 4.7%. In dollar terms, the annual revenue rose 4.3% to $13.84 billion.
HCL Tech also announced an interim dividend of ₹18 per share, with the record date set for April 28, 2025, and payment scheduled for May 6, 2025. This brings the total dividend for the fiscal year to ₹60 per share, indicating a payout ratio of 93.5% of the earnings per share (EPS).
Despite the positive growth indicators, HCL Technologies faced challenges with its employee count. The total headcount at the end of FY25 stood at 223,420, representing a net reduction of 4,061 employees over the year. This decline was largely due to the divestiture of certain business units, which accounted for a reduction of 7,398 roles. However, the company managed to add 7,829 fresh graduates during the fiscal year, indicating a continued investment in talent acquisition.
The attrition rate also saw an increase, rising to 13% from 12.4% in the same quarter last year. This trend raises concerns about employee retention in a competitive job market, especially within the tech sector.
Looking ahead, HCL Tech has set its revenue growth expectations for FY26 in the range of 2% to 5% year-on-year in constant currency. The company anticipates that services revenue growth will mirror this range, with EBIT margins projected between 18% and 19%. This cautious outlook reflects ongoing global uncertainties that could impact business performance.
HCL Technologies also reported strong new deal wins during the quarter, with a total contract value (TCV) of $2,995 million. Notable partnerships include a strategic alliance with Western Union aimed at driving innovation and transformation, as well as collaborations with a Fortune 50 telecommunications company and a leading APAC-based financial services firm. These partnerships are expected to enhance operational efficiencies and customer experiences.
In summary, HCL Technologies has demonstrated resilience and growth despite facing some operational challenges. The company's commitment to digital services and innovation continues to position it favorably in the competitive IT landscape. As it navigates the uncertainties of the global market, stakeholders will be watching closely to see how HCL Tech adapts and evolves in the coming fiscal year.
