Social ,23 Apr 2025

HCL Technologies Q4 FY25 Results: Resilient Performance Amid Evolving Tech Landscape

HCL Technologies (HCLTech), one of India’s top-tier IT services companies, reported its Q4 FY25 financial results, highlighting a resilient performance amid macroeconomic headwinds and a transitioning global technology environment. While the quarter reflected marginal net profit growth, the company secured robust deal wins and maintained strong cash flows, reflecting the strength of its operating model.

 

Key Financial Metrics: Q4 FY25 vs Q4 FY24

Metric	Q4 FY25	Q4 FY24	YoY Change
Revenue	₹28,499 crore	₹26,606 crore	+7.1%
Net Profit	₹3,986 crore	₹3,983 crore	~Flat
EBIT	₹5,021 crore	₹4,682 crore	+7.2%
EBIT Margin	17.6%	17.6%	Unchanged
EPS	₹14.72	₹14.71	~Flat

 

Despite modest growth in profit, HCLTech delivered consistent operational performance and saw sustained growth in revenues, underpinned by large deal wins and stable demand in key verticals.

 

FY25 Full-Year Financial Overview

1. Revenue: ₹1,09,913 crore (growth of 8.3% YoY)
2. Net Income: ₹15,702 crore (up 5.7% YoY)
3. Operating Cash Flow: $2,711 million (up 21.6% YoY)
4. Free Cash Flow: $2,584 million (up 27.7% YoY)
5. ROIC (Return on Invested Capital): 33.8% (up 341 bps YoY)

These figures underscore a robust fiscal year, with healthy growth across profitability and liquidity metrics. The company continues to maintain its reputation as a cash-generating enterprise with a commitment to shareholder returns.

 

Segment Performance Highlights

1. IT and Business Services (ITBS): The largest contributor to revenue, saw steady demand in digital transformation and cloud services.
2. Engineering and R&D Services (ERS): Strong traction in ER&D, particularly in automotive, manufacturing, and medical devices, fueled growth.
3. Products and Platforms (P&P): Revenue saw a decline, as the segment continues to transition and optimize its portfolio.

Notably, ERS emerged as a standout segment, reflecting global clients' increasing investments in product innovation and platform modernization.

 

Deal Wins & Order Book Growth

1. New Deal Wins: $3 billion in Total Contract Value (TCV) in Q4, compared to $2.1 billion in Q4 FY24—a 43% surge.
2. Notable Deals: Included major digital transformation programs across BFSI, Healthcare, and Telecom sectors.

The record TCV in Q4 underlines client confidence in HCLTech’s delivery capabilities and its ability to lead complex, multi-year transformation programs.

 

Management Commentary

C Vijayakumar, CEO & MD of HCLTech, stated:

“We delivered a solid quarter with revenue and margin growth driven by strong execution. Our deal pipeline remains strong, and we’re confident in the resilience of our business model as we enter FY26.”

The company also reaffirmed its commitment to tech-led innovation with a sharp focus on AI, cloud modernization, cybersecurity, and sustainability.

 

FY26 Guidance

1. Revenue Growth Forecast: 2% to 5% in constant currency terms
2. EBIT Margin Guidance: 18% to 19%

The guidance reflects cautious optimism amid macroeconomic uncertainty in key markets like the US and Europe, where discretionary IT spending remains tight.

 

Dividend Announcement

HCLTech’s board approved an interim dividend of ₹18 per share, reinforcing its commitment to shareholder returns. The record date is May 5, 2025, and the payout is scheduled for May 15, 2025.

 

Strategic Priorities Moving Forward

1. AI-Led Offerings: The company is investing heavily in GenAI and AI platforms across service lines.
2. Sustainability Focus: Continued investment in green IT and ESG-led frameworks.
3. Global Expansion: Deeper penetration in the Americas, Europe, and Asia Pacific.

HCLTech’s “Supercharging Progress” strategy emphasizes a balanced portfolio, tech-led innovation, and delivering stakeholder value with agility.

 

Conclusion

HCL Technologies closed FY25 with resilience and focus. While Q4 saw flat net profit, the growth in deal pipeline, cash flow, and client confidence paints a positive picture for FY26. As the global IT landscape evolves, HCLTech is well-positioned with a future-ready service portfolio and a strategic eye on emerging technologies.