The IT major’s services revenue growth is projected at 1.5%–4.5%, compared to expectations of around 2%–5%. HCL Tech has guided for an EBIT margin band of 17.5%–18.5%, broadly in line with earlier brokerage estimates of 17%–19%.
The guidance comes after a muted March quarter performance, with the company missing estimates on key metrics. HCLTech reported net profit of ₹4,488 crore, up 10.1% sequentially and 4.2% year-on-year, but below the CNBC-TV18 poll estimate of ₹4,696 crore.
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Revenue came in at ₹33,981 crore, up 0.3% quarter-on-quarter and 12.4% YoY, also missing the poll estimate of ₹34,553 crore.
In dollar terms, revenue stood at $3.68 billion, rising 2.9% sequentially, but below expectations of $3.76 billion.
Operating performance was weaker, with EBIT at ₹5,620 crore, down 10.6% QoQ, compared to estimates of ₹6,040 crore. EBIT margin came in at 16.5%, declining from 18.6% in the previous quarter and below expectations of 17.6%.
Constant currency revenue declined 3.3% sequentially, steeper than the expected 1% drop, reflecting continued weakness in the software business.
Commenting on the performance, CEO and MD C Vijayakumar said the quarter came in below expectations due to “softness in certain parts of our business due to lower discretionary spend and delayed decision making.”
Segment-wise, IT and Business Services revenue rose to ₹25,443 crore, while Engineering and R&D Services saw a marginal uptick to ₹5,783 crore. However, HCL Software revenue fell sharply to ₹2,755 crore from ₹3,692 crore in the previous quarter, weighing on overall growth.
The company reported total contract value (TCV) of $1.94 billion for the quarter, while attrition stood at 12.5% on a last twelve months basis.
Vijaykumar added that the company’s AI-led offerings are gaining traction, with annualised advanced AI revenues crossing $620 million in Q4. “Our priority in FY27 is to position the company to capture AI-led opportunities for long-term value creation,” he said.
For FY26, HCLTech reported revenue of ₹1.30 lakh crore, up 11.2% YoY, while net profit declined 4.3% to ₹16,652 crore, impacted by a one-off ₹956 crore charge related to new labour codes.
The board declared an interim dividend of ₹24 per share for FY27, with April 25 as the record date and May 5 as the payment date.
Shares of the company closed 0.75% higher at ₹1,439 ahead of the Q4 earnings announcement on Tuesday. The stock has gained nearly 6% in the last month.
