HCL Technologies (HCLTECH) Q4 24/25 earnings summary

Executive summary

• FY 2025 revenue reached $13.84 billion (INR 117,055 crore), up 4.7% in constant currency and 6.5% YoY, with both services and software contributing to growth.

• Net income grew 10.8% YoY to INR 17,399 crore, with EBIT at INR 21,420 crore (18.3% margin).

• Strong deal bookings with $9.4 billion TCV for the year and $3 billion net new bookings in Q4.

• AI and GenAI are integral to nearly every deal, driving significant adoption and transformation.

• Board approved audited results and declared a total FY25 dividend of INR 60/share (93.5% payout ratio).

Financial highlights

• Services revenue for FY 2025 was $12.46 billion, up 4.8% YoY; software revenue was $1.42 billion, up 3.5%.

• Q4 FY25 revenue was $3.50 billion (INR 30,246 crore), up 2.0% YoY; Q4 EBIT at INR 5,442 crore (18.0% margin).

• Net income for FY25 was $2.04 billion (INR 17,399 crore, 14.9% margin); diluted EPS at INR 64.09, up 10.8% YoY.

• Operating cash flow for the year was $2.63 billion; free cash flow was $2.5 billion; FCF/NI at 123%.

• ROIC for the year was 37.9%, with services ROIC at 45.5%.

Outlook and guidance

• FY 2026 revenue growth guidance is 2%-5% in constant currency; EBIT margin guidance is 18%-19%.

• Guidance reflects macro uncertainty, with lower end assuming recessionary or discretionary spending declines.

• AI-led modernization and efficiency expected to drive demand, but discretionary spending remains subdued.