Stock Market Strategy: HCL Tech Share Price Slips After Q3 Results — Limited Upside Ahead | Buy the Dip or Exit?
HCL Tech share price dropped by more than 1% during Tuesday's trading session following the release of its Q3 results.
The IT company reported on Monday that its consolidated net profit for the December quarter declined by 11% year-on-year, totaling ₹4,076 crore compared to ₹4,591 crore from the same period last year, which may influence short-term sentiment in the Indian stock market.
In Q3FY26, the revenue from operations reached ₹33,872 crore, representing a 13% increase from ₹29,890 crore reported in the corresponding quarter of the previous financial year, strengthening the company’s long-term Stock Market Strategy outlook.
The net profit fell by almost 4% quarter-on-quarter from ₹4,235 crore, while the revenue increased by 6% sequentially compared to ₹31,942 recorded in Q2FY26, a mixed trend that could create volatility for intraday trading opportunities.
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Further, the company has projected a revenue growth of 4% to 4.5% year-on-year in constant currency (CC) for FY26, with services revenue growth anticipated to be between 4.75% and 5.25% YoY in CC. The Earnings Before Interest and Taxes (EBIT) margin is expected to be in the range of 17% to 18%.
The company declared an interim dividend of ₹12 per equity share for the financial year 2025-26. The record date for dividend payment is set for January 16, 2026, and the payment will occur on January 27, 2026.
Here's what expert says
Seema Srivastava, Senior Research Analyst at SMC Global Securities, said that HCL Technologies reported a steady Q3 FY26 performance, marked by broad-based revenue momentum, healthy deal wins and resilient margins despite one-off headwinds.
Srivastava highlighted that operating performance was solid, with EBIT rising 13.2% QoQ to ₹6,285 crore and margins recovering to 18.6%, even after absorbing an 81 bps impact from restructuring costs.
According to Seema, the IT firm reported profitability was impacted by exceptional items, including a one-time ₹956 crore charge related to new Labour Codes, which led to YoY volatility in net profit; however, underlying earnings quality remained healthy, supported by strong cash generation with FCF at 120% of net income.
Seema Srivastava added that return metrics improved meaningfully, with ROIC at 39.4% on an LTM basis, reflecting disciplined capital allocation and improved operational efficiency.
“Deal momentum was a major positive, with new deal TCV of $3.0 billion, up 43.5% YoY, strengthening revenue visibility. Attrition declined to 12.4%, and fresh graduate hiring continued, positioning the company well for future demand. Management raised FY26 revenue growth guidance while maintaining EBIT margin guidance of 17–18%, signalling confidence in growth sustainability alongside margin discipline,” said Seema Srivastava.
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