Mumbai, Jan 12 : HCL Technologies, the countryâ??s third-largest IT services company, on Monday reported 11.14 per cent decline year-on-year (YoY) decline in its financial results for the quarter ended December (Q3 FY26) after-market hours.

According to the stock exchange filing, the net profit for the 3rd quarter stood at Rs 4,082 crore, down from Rs 4,594 crore in the same quarter previous financial year (Q3 FY25).

The drop was mainly due to a one-time cost of Rs 956 crore linked to new labour code provisions that came into effect during the quarter.

The companyâ??s revenue for the December quarter rose to Rs 33,872 crore -- marking a 6 per cent increase compared to the previous quarter and a 13.3 per cent rise from a year ago.

In constant currency terms, revenue grew 4.2 per cent quarter-on-quarter and 4.8 per cent year-on-year.

Total income of the company in Q3 was Rs 34,257 crore, up by 12.8 per cent from Rs 30,367 crore in year-ago period, the IT firm said in its filing.

Service revenue also showed steady growth, increasing 1.8 per cent sequentially and 5 per cent annually in constant currency terms.

A key highlight of the quarter was strong growth in advanced technologies. Revenue from Advanced AI jumped nearly 20 per cent quarter-on-quarter in constant currency terms to $146 million.

On the operational side, the company reported earnings before interest and tax (EBIT) of Rs 6,285 crore, which was 8 per cent higher compared to the same period last financial year.

Operating margins also improved, with EBIT margin expanding to 18.6 per cent from 17.2 per cent in the September quarter.

â??We are well positioned to address evolving AI demand of our clients across industries and service lines,â?? C Vijayakumar, CEO & Managing Director, HCLTech stated.

/IANS