HCL Tech Q4 Result: From profit, revenue, to guidance— 6 key highlights of IT player’s Q4 earnings

HCL Tech Q4 Result: HCL Technologies on Tuesday, April 22, reported an 8 per cent year-on-year (YoY) rise in consolidated net profit to ₹4,307 crore for the last financial year’s March quarter (Q4FY25). Revenue from operations increased 6 per cent YoY to ₹30,246 crore for the quarter under review.

“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 per cent in constant currency (CC) and EBIT margin of 18.3 per cent,” said C Vijayakumar, CEO and Managing Director, HCL Tech.

“HCL Software growth continues to accelerate as it grew 3.5 per cent CC this year. During this quarter, our services business delivered healthy growth of 0.7 per cent quarter-on-quarter (QoQ) CC amid volatile market conditions. We saw very strong new bookings of $3 billion this quarter, catalysed by our AI propositions and integrated GTM organisation that was set up at the start of the fiscal year,” Vijayakumar said.

HCL Tech Q4 earnings: Key takeaways

1. Profit and revenue

HCL Tech’s revenue from operations for Q4FY25 rose 1.2 per cent QoQ and 6.1 per cent YoY to ₹30,246 crore. In the same quarter last year, the company’s revenue was ₹28,499 crore, while in Q3FY25, the company had seen a revenue of ₹29,890 crore.

However, in constant currency (CC) terms, revenue declined 0.8 per cent QoQ but increased 2.9 per cent YoY.

The company’s dollar revenue for the quarter declined 1 per cent QoQ and rose 2 per cent YoY to $3,498M.

Services revenue in CC increased 0.7 per cent QoQ and 2.7 per cent YoY. Digital CC revenue, which contributes 40.7 per cent of services, grew 12.6 per cent YoY.

Consolidated profit for the period rose 8 per cent YoY to ₹4,307 crore compared to ₹3,986 crore in the same quarter last year. However, sequentially, the company’s profit declined 6.2 per cent. In Q3FY25, HCL Tech’s profit was ₹4,591 crore.

2. Profitability

The IT firm’s EBIT for the quarter stood at ₹5,442 crore against ₹5,018 crore YoY and ₹5,821 crore QoQ. This means EBIT declined 6.5 per cent QoQ but increased 8.4 per cent YoY.

EBIT margin increased to 18 per cent from 17.6 per cent YoY, but declined from 19.5 per cent QoQ.

3. FY26 guidance

HCL Tech expects FY26 revenue growth to be between 2 per cent to 5 per cent YoY in CC, while services revenue growth is also expected to be between 2 per cent to 5 per cent YoY in CC. EBIT margin may be between 18 per cent to 19 per cent.

4. Headcount and attrition

During Q4FY25, HCL Tech added 2,665 employees, and its total people count stood at 2,23,420 against 2,27,481 YoY. This means the company’s headcount decreased by 4,061 for the year.

It added 1,805 freshers during the quarter against 3,096 YoY. Net additions during the quarter were 2,665 against 2,725 YoY.

Last twelve-month (LTM) attrition (excluding involuntary attrition and digital process operations) rate for the quarter stood at 13 per cent, which was up from 12.4 per cent in Q4FY24.

5. Dividend

HCL Tech declared an interim dividend of ₹18 per equity share. The record date for the payment of said interim dividend has been fixed as April 28, 2025, and the payment date is May 6, 2025.

“Our Board is pleased to declare ₹18 per share as the dividend for the quarter, bringing the total to ₹60 per share for FY25, which is 93.5 per cent of the EPS,” said Shiv Walia, Chief Financial Officer of HCL Tech.

6. Deal TCV

The total contract value (TCV) of new deal wins stood at $2,995 million in Q4FY25, while for the entire year (FY25), the figure stood at $9,268 million.

Among the key deal wins were:

(i) Western Union has formed a strategic partnership with HCLTech to drive innovation and transformation.

(ii) A Fortune 50 telecommunications company expanded its partnership with HCLTech to enhance its high-density network performance and customer experience.

(iii) A leading APAC-based financial services company selected HCLTech to accelerate its retail banking transformation.

(iv) Carrix, the world’s largest independent marine and rail terminal operator, selected HCL Tech to improve its global port operations with HCL Tech’s advanced suite of AI Engineering and AIoT offerings.

(v) A US-based financial services company selected HCL Tech as its strategic partner to streamline its data science and analytics projects using HCL Tech’s AI Foundry offering.

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