HCL Technologies is expected to remain in focus today, July 15, after it posted weaker-than-expected results for the quarter ended June 2025 and cut its EBIT margin guidance for FY26.
The company reported a consolidated net profit of ₹3,843 crore in Q1 FY26, down 10% year-on-year from ₹4,257 crore in the year-ago quarter and down 10.8% sequentially from ₹4,307 crore in the March quarter. The figure also fell short of Street estimates of about ₹4,224 crore.
Revenue from operations in rupee terms stood at ₹30,349 crore, flat on a quarterly basis and up around 7% YoY. In U.S. dollar terms, revenue rose 1.4% sequentially to $3,545 million, but constant currency revenue fell 0.8%, performing slightly better than analysts’ expectations of a 1.1% decline.
EBIT for the quarter came in at ₹4,942 crore, down from ₹5,442 crore in the previous quarter, with EBIT margin narrowing to 16.3% from 17.9%. The drop was attributed to lower utilisation rates and higher investments in generative AI and go-to-market initiatives. Consequently, the company lowered its FY26 EBIT margin guidance to 17–18%, from 18–19% earlier.
However, HCLTech raised the lower end of its FY26 revenue growth guidance to 3–5%, from 2–5% previously, aligning with analyst expectations.
The services segment revenue declined 7.6% sequentially in constant currency terms and 4.7% in reported U.S. dollar terms. Meanwhile, the Tech Solutions segment, which accounts for about 23% of overall revenue, grew 8.6% QoQ in dollar terms, rebounding strongly from a sharp decline in the previous quarter.
Management commentary highlighted increased hiring plans, a restructuring of underutilised overseas facilities over the next three quarters, and confidence in R&D services and telecom verticals driving growth ahead. Two deals delayed from Q1 are expected to close in Q2.
HCLTech’s CEO also emphasised that the company differentiates itself from big tech players by creating solutions on top of LLMs (large language models), with a focus on building intellectual property and platforms.
Investors will watch the stock today as the company’s strategic initiatives and pipeline execution unfold in the coming quarters.
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