HCLTech Q3 Results Preview: A Look Ahead at the IT Major’s Earnings

HCLTech Ltd. is expected to report stronger sequential growth in the December quarter, with margins seen expanding on the back of software seasonality, even as wage hikes and restructuring costs weigh on profitability. The company will announce its quarterly results on Monday, and investors are eagerly awaiting the update.

Revenue and Profit Expectations

Bloomberg estimates point to a 5% quarter-on-quarter rise in revenue and an 8% increase in operating profit. Revenue is seen 5% higher at Rs 33,262 crore versus Rs 31,820 crore, while EBIT is seen 8% higher at Rs 6,020 crore versus 5,562 crore. EBIT margin is seen at 18.09% versus 17.47%, and profit is seen 11% higher at Rs 4702 crore versus Rs 4244 crore.

Analyst Expectations

Analysts will focus on the extent of margin expansion after factoring in the impact of wage hikes and restructuring costs, alongside any changes to FY26 revenue growth guidance and commentary on demand visibility for calendar year 2026. Here’s what analysts are expecting from HCLTech Q3 results:

• Jefferies expects revenue to grow 2.9% quarter-on-quarter in constant currency, driven by seasonality in the software business and partly offset by furloughs.
• Investec expects 2.4% quarter-on-quarter growth in constant currency and 2.3% growth in US dollar terms, driven by the products and platforms business, with services revenue growth of about 1% sequentially.
• UBS expects margin to expand due to strong software performance, though growth investments may cap upside.
• Nuvama expects revenue growth of 2.4% quarter-on-quarter in constant currency and 2.2% growth in US dollar terms, driven by products and platforms growth of about 15% and services growth of around 1%.

Key Takeaways

Investors should keep an eye on the following key takeaways from HCLTech’s Q3 results:

• FY26 guidance revision
• Calendar year 2026 budgets
• Deal wins
• Discretionary spending
• H-1B visa fee hike

Conclusion

HCLTech’s Q3 results are expected to be a significant event for investors, with expectations of stronger sequential growth and expanding margins. While wage hikes and restructuring costs may weigh on profitability, the company’s software seasonality is expected to drive growth. Investors should keep an eye on the key takeaways from the results, including FY26 guidance revision, calendar year 2026 budgets, deal wins, discretionary spending, and the impact of the H-1B visa fee hike.

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