HCLTech Sees Q1 Profit Slip, Revises FY26 Growth Outlook

HCLTech’s Q1 numbers show mixed signals. Net profit fell 11% quarter-over-quarter (QoQ) to ₹3,842 crore, and dropped 10% year-over-year (YoY). Revenue remained flat QoQ at ₹30,349 crore, but dipped 8% YoY. EBIT declined 9% QoQ to ₹4,942 crore, though it grew 3% YoY. Margins shrank to 16.3% from 18% last quarter and 17.1% last year, signaling some cost pressures.

Looking ahead, HCLTech has trimmed its FY26 guidance. Margin expectations have been revised down to a range of 17.0% to 18.0%, from the earlier 18% to 19%, suggesting tighter profitability due to possible market challenges or rising costs. Constant currency revenue growth is now estimated between 3% and 5%. Notably, the company has nudged up the lower end of this range from 2% to 3%, showing confidence in stabilizing demand or internal recovery strategies.

Overall, while Q1 reflects a cooling off in numbers, HCLTech appears to be recalibrating cautiously for the future. The revised guidance points to a realistic approach amid changing market dynamics, and the raised lower revenue band offers a subtle positive signal for FY26 performance. Let’s see how they power through the next quarters.