HCL Technologies will begin rolling out annual salary increments from October 2025, its Chief People Officer Ram Sundararajan confirmed after the company announced second-quarter results. The decision comes as the IT services major reported a sequential improvement in profit and revenue, even as it maintained a cautious outlook for the full year.
Sundararajan said the increments would follow the same process as last year. “We have decided to roll out the increments effective October and will follow the same procedure as last year for implementing the process,” he told reporters, Press Trust of India reported. The move signals a continued focus on employee retention in an environment where Indian IT companies face intense competition for digital and artificial intelligence talent.
For the quarter ended September 2025, HCL posted a net profit of Rs 4,236 crore, broadly unchanged from the Rs 4,237 crore recorded in the year-ago period but up 10.2% compared with the June quarter. Revenue from operations rose 5.2% quarter-on-quarter to Rs 31,942 crore, reflecting year-on-year growth of 10.7%. Total income stood at Rs 32,357 crore. EBIT rose 11.3% sequentially to Rs 5,503 crore, with operating margin improving to 17.25% from 16.3% in the previous quarter.
The company declared its third interim dividend for the financial year, setting it at Rs 12 per equity share of face value Rs 2 each. The record date has been set for 17 October, with the payout scheduled for 28 October.
Outlook unchanged
HCL kept its FY26 revenue and margin guidance steady, expecting overall revenue growth of 3%–5% in constant currency and EBIT margins between 17%–18%. Services revenue is forecast to grow between 4%–5% for the year.
Managing Director and Chief Executive C. Vijayakumar said the company has been making a “conscious effort” to reduce its reliance on H-1B visas by strengthening its global delivery model. “Over the years, we have made a conscious effort to lower our reliance on visas by strategically strengthening our global delivery model,” he said. His comments came against the backdrop of higher US visa costs, which have raised concerns over the profitability of Indian IT firms operating in the United States.
AI-led momentum
The company highlighted strong demand for its artificial intelligence-powered services. Advanced AI revenue crossed $100 million in the quarter, with digital services contributing 42% of overall services revenue, up 15% year-on-year. New deal wins reached $2.57 billion, the highest ever without reliance on a mega-deal. Net employee additions stood at 3,489, bringing the total headcount to 226,640, while attrition eased slightly to 12.6%.
Vijayakumar described Q2 as a “standout quarter on every front,” citing execution strength and growing demand for AI solutions. “For the first time, our new bookings surpassed $2.5 billion without reliance on any mega-deal,” he said.
Chairperson Roshni Nadar Malhotra emphasised that innovation and upskilling remain critical to HCL’s strategy. “We continue to perform well despite the uncertain business environment and are investing in new technologies and capabilities to unlock growth opportunities. The upskilling of our global talent base remains a key priority and an enabler of innovation for our clients,” she said in a company statement.
Balancing growth and people strategy
The confirmation of salary increments comes as Indian IT companies face a challenging mix of margin pressures, geopolitical uncertainties, and fast-changing client demand. For HCL, the pay hikes are also a message of continuity, reinforcing its effort to balance cost optimisation with employee morale. Analysts note that pay decisions at HCL and peers often set benchmarks for the wider industry.
The company’s clear signal on increments, alongside steady guidance, suggests confidence in sustaining growth even as discretionary technology spending remains under scrutiny globally. With AI revenues scaling up and local hiring reducing visa risks, HCL appears to be positioning itself for gradual but steady expansion through FY26.