HCLTech is expected to report a mixed set of numbers for the fourth quarter of FY26, with modest revenue growth in rupee terms but some pressure on margins and dollar revenues, according to consensus estimates.
Analysts expect the company’s revenue in dollar terms to come in at around USD 3678 million, marking a decline of about 3.03% compared to USD 3,793 million in the previous quarter. However, in rupee terms, revenue is likely to see a marginal uptick of 0.45 per cent, reaching approximately Rs 34024 crore versus Rs 33872 crore earlier.
Profitability is expected to remain under some strain. EBIT for the quarter is estimated at Rs 5979 crore, down nearly 4.87 per cent from Rs 6285 crore in the preceding quarter. EBIT margins are also likely to contract to 17.57 per cent, compared to 18.56 per cent, reflecting a decline of 99 basis points. This remains within the company’s guided range of 17–18 per cent.
Despite this, net profit is projected to show a healthy rise. Profit after tax (PAT) is estimated at Rs 4647 crore, up 14 per cent from Rs 4076 crore in the previous quarter, indicating some resilience at the bottom line.
Looking ahead, the company is expected to provide a revenue growth guidance of 3–5 per cent for FY27. On a constant currency basis, revenues may see a sequential decline of around 1.7% in Q4, largely due to seasonal weakness in the products segment, which is expected to offset steady growth in core IT services.
Margins are likely to face near-term pressure due to restructuring-related costs. However, the company may revise its margin guidance upward for FY27 to a range of 17.5–18.5 per cent, slightly higher than the earlier band of 17–18 per cent.
Currency movements are expected to play a mixed role. While rupee depreciation could support revenue growth, this benefit may be partially offset by increased costs arising from wage revisions.
Deal wins remain a key area of focus. Total contract value (TCV) for the quarter is estimated to be around $2.5 billion, indicating sustained deal momentum.
Investors will closely watch management commentary on FY27 guidance, the conversion of a strong deal pipeline into actual revenues, and the expansion of AI-led deals, particularly traction in the company’s AI Force platform. Additionally, the pace at which enterprise AI adoption moves beyond pilot stages will be an important indicator of future growth.
