HCLTech vs Time Technoplast Q3 FY26

HCLTech delivered a standout Q3 FY26 with revenue of INR 33,872 crore, up 13.3% YoY, crossing a $15 billion annualized revenue milestone. Services revenue grew 5% YoY in constant currency, led by Engineering & R&D Services (10.8% YoY) and HCLSoftware (28.1% QoQ). EBIT margin at 18.6% (excl. labor code impact) improved 111 bps QoQ. Net income was INR 4,795 crore. Management raised full-year services guidance to 4.7%-5.25% CC and overall guidance to 4%-4.5% CC. Key growth drivers include advanced AI revenue of $148 million (up 20% QoQ), strong bookings of $3 billion, and a mega $475 million AI-led deal. Risks include persistent softness in discretionary spending and potential impact from U.S. tariff policies, though management remains confident in capturing emerging AI-related spend.

Guidance read

FY26 Services Revenue Growth Guidance Raised to 4.7%-5.25% CC: Full-year services constant currency growth guidance raised to 4.7%-5.25% from previous range, reflecting strong Q3 performance and bookings. FY26 Overall Revenue Growth Guidance Raised to 4%-4.5% CC: Company-level constant currency growth guidance raised to 4%-4.5% for FY26. FY26 EBIT Margin Guidance Maintained at 17%-18%: Full-year EBIT margin guidance remains at 17%-18%, inclusive of restructuring costs but excluding one-time labor code impact. Ongoing Labor Code Cost Impact Minimal at 10-20 bps: Management expects minimal ongoing costs from new labor code, estimated at 10-20 basis points impact on margins.

Risk read

Key risks include Persistent Softness in Discretionary Spending — Traditional discretionary spending remains soft, and management is not expecting a rebound to pre-COVID levels, focusing instead on emerging AI-related spend.; U.S. Tariff and Geopolitical Uncertainty — Potential impact from U.S. tariff threats (e.g., 500% tariff) and geopolitical tensions could affect the services sector. Management declined to comment, indicating uncertainty.; Life Sciences & Healthcare Vertical Weakness — Life Sciences and healthcare vertical continues to show weakness due to U.S. healthcare sector pressure, with management expecting stabilization in a couple of quarters.; GCC Expansion Impacting Outsourcing — Rise of Global Capability Centers (GCCs) in India may structurally change outsourcing opportunities, though management sees it as a net opportunity..

Promise ledger

Of 4 tracked promises, management 0 met, 0 close, 4 missed.

TI

Time Technoplast

Q3 FY26 · Information Technology

Time Technoplast delivered a solid Q3 FY26 with revenue of ₹1,567 crore (+13% YoY) and PAT of ₹126 crore (+25% YoY), driven by 15% volume growth and a rising share of value-added products (30% of sales vs 27% last year). The composite segment grew 23%, supported by a healthy order book of ₹165 crore for Type-4 cylinders. Management reiterated a 15% revenue growth trajectory and guided for ROCE improvement to 20% in FY26 (9M: 18.6%). Key margin drivers include automation (₹75 crore capex), solar power savings (~₹10 crore annualized from FY27), and debt reduction to near-zero in 6 months, cutting finance costs from ~₹90 crore to ₹25-30 crore. Risks include potential raw material volatility and slower-than-expected ramp-up of new composite capacity.

Guidance read

ROCE target of 20% for FY26: Management targets 20% ROCE for the full year, up from 18.6% in 9M, driven by margin expansion and debt reduction. Debt-free in next 6 months: Total debt reduced to ₹266 crore; management expects to become debt-free within 6 months, cutting finance costs to ₹25-30 crore annually. 15% revenue growth trajectory for next 3 years: Company projects consolidated revenue growth above 15% for the next 2-3 years, driven by packaging (11-13%) and composite (25-30%) segments. Solar power savings of ₹10 crore from FY27: Gujarat solar power benefit started in February; annual savings of ~₹10 crore expected from next fiscal, with investment payback in one year.

Risk read

Key risks include Raw material price volatility — Polymer prices have declined, but any reversal could pressure margins. Management noted lower raw material costs impacted revenue growth vs volume.; Delays in new composite capacity ramp-up — The new composite plant in Daman is commissioning in March 2026; any delay in commercialization could affect FY27 revenue targets.; Inorganic acquisition integration risk — The proposed acquisition of Vibrant Packaging (₹250 crore revenue) is under due diligence; integration challenges or deal failure could impact growth plans..

Promise ledger

Scorecard data is being built as historical quarters are processed.