HCL Technologies Share Price Today: Shares of HCL Technologies, which is headquartered in Noida, Uttar Pradesh, tumbled on Wednesday, April 22, dropping more than 10% to ₹1,286 per share on the NSE during intra-day trading hours. This came after the IT firm reported a mixed set of Q4 FY26 numbers and issued a weak FY27 revenue growth outlook.
HCL Tech FY27 Guidance Weighs on Dalal Street Sentiment
The most significant factor behind this steep fall in the stock price was HCLTech’s revenue guidance for FY27, as the IT giant expects its revenues to increase by only 1-4% in constant currency terms, far short of market estimates.
The company has cited a difficult demand scenario as the reason, with lower tech spendings and delayed client decision-making and possible ramp-downs in certain projects in FY27.
HCL Technologies Q4 FY26 Earnings Show Mixed Performance
HCLTech posted stable net income figures but left its investors underwhelmed for the March quarter (Q4 FY26).
Net income increased by 4.2% YoY to ₹4,488 crore.
Revenue increased by 12.3% YoY to ₹33,981 crore.
In terms of operating results, the company’s margins witnessed weakness. The EBIT figure stood at ₹5,620 crore, representing a margin of 16.5% and a sequential drop of 10.6%. Operating margins without restructuring charges stood at 17.7%.
On the sequential front, net income was flat at ₹33,981 crore, with the company’s constant currency revenues declining 3.3% QoQ, despite growing 2.4% YoY. Revenues in dollars stood at $3,682 million.
HCL Technologies Business Segments Show Diverging Trends
The company’s service revenue was generally flat, having fallen marginally in terms of constant currency by 0.1% quarter-over-quarter but increasing by 4.2% year-over-year.
Nonetheless, performance across segments varied as HCL Technologies’ software (HCL Software) business fell by 14.1% YoY, while the company’s AI segment continued to perform strongly, growing by 6.1% quarter-over-quarter in constant currency to $155 million.
HCL Technologies FY26 Performance Signals Pressure on Bottom Line
FY26 saw HCLTech report:
Revenue of ₹1.30 lakh crore, up by 11.2% YoY
Net Profit of ₹16,652 crore, down by 4.3% YoY
Further, the company did miss on its guidance on constant currency revenue growth, creating more worries for shareholders.
The board has recommended an interim dividend of ₹24 per share for FY27, with the record date set for April 25, and payout due on May 5.
HCL Technologies Winning Deals & Recruitment Remains Robust
Even amidst weak sentiments, HCL Technologies maintained its deal pipeline, reporting total contract value (TCV) of $1.94 billion for Q4 FY26.
Employee attrition came out at 12.5% on a trailing twelve-months basis. Total headcount increased by 802 in the quarter to cross 2.27 lakh, while fresher recruitment numbers for FY26 exceeded 11,700.
HCL Technologies’ Weakened Outlook Drags IT Stocks Down
The poor outlook from HCLTech has triggered a widespread sell-off in IT stocks. Nifty IT has fallen by more than 4% as other big IT companies such as Tech Mahindra, Infosys, TCS, Coforge, and Persistent Systems were down.
According to market experts, the outlook from HCLTech has added to the bearish sentiments surrounding the overall IT sector, which is reliant on discretionary spending by clients in various global markets.
What’s weighing on IT stocks?
There are several factors that have resulted in poor performance of the IT sector. The biggest reason behind poor performance of the IT sector is the falling spending from clients, while at the same time decision-making delays are increasing deal cycles.
On top of all this, early pricing pressures because of AI adoption are starting to impact the profit margins in the IT sector. The macroeconomic uncertainties in key markets are leading corporates to cut down their IT spending.
Overall, all these reasons have kept the sentiment around IT sector quite bearish in the near term.
HCL Tech stock performance in April
In April, the HCLTech stock has remained under pressure, especially after the release of its quarterly earnings results. Currently, the price of the stock has declined after the previous increase, taking the overall stock price of the company lower than its value on the first day of April.
HCL Technologies market outlook remains volatile
In the coming weeks, investors will be closely tracking the upcoming quarterly results of IT stocks along with comments made by management regarding the outlook of their respective companies. Overall, volatility is expected to continue.
(Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Investors should consult a financial advisor before making any investment decisions.)
