HCL Technologies, a leading IT services company, has announced its financial results for the third quarter of the fiscal year 2026 (3QFY26). The company reported a revenue of $3.8 billion, representing a quarter-over-quarter growth of 4.2%. This growth indicates a steady increase in the company’s business, driven by its diversified portfolio of services and strong client relationships.
The company’s EBIT (Earnings Before Interest and Tax) margin stood at 18.6%, which is a key indicator of its operational profitability. Additionally, HCL Technologies secured new deals with a total contract value (TCV) of $3.0 billion, demonstrating its ability to win new business and expand its existing relationships.
However, the company faces a one-time charge of ₹9.6 billion (approximately $115 million) due to the implementation of new labor codes. This charge will impact the company’s EBIT by ₹956 crore ($115 million), which may affect its profitability in the short term. Despite this, the company has stated that its hiring plans remain unchanged, indicating its confidence in its business outlook and growth prospects.
The new labor codes are expected to have a one-time impact on the company’s financials, and HCL Technologies is taking steps to adapt to the changing regulatory environment. The company’s management is focused on ensuring that its operations are compliant with the new labor codes, while also driving business growth and expansion.
Overall, HCL Technologies’ financial results for 3QFY26 demonstrate its ability to deliver steady growth and profitability, despite the challenges posed by the new labor codes. The company’s strong deal pipeline and unchanged hiring plans indicate its confidence in its business outlook, and its ability to navigate the changing regulatory environment. With a strong foundation in place, HCL Technologies is well-positioned to drive growth and expansion in the IT services industry.