HCL Technologies shares declined 2% after the company reported disappointing Q1 FY26 results and trimmed its EBIT margin outlook for the full year. As of 9:17 AM, the shares were trading 1.47% lower at Rs 1,596.00.
The IT major posted a consolidated net profit of ₹3,843 crore for the June quarter, marking a 10% year-on-year decline from ₹4,257 crore and a 10.8% drop from ₹4,307 crore in the previous quarter. The profit figure missed analyst estimates, which were pegged at around ₹4,224 crore.
Revenue from operations stood at ₹30,349 crore, showing no major change sequentially but growing about 7% year-on-year. In U.S. dollar terms, revenue rose 1.4% quarter-on-quarter to $3,545 million. However, constant currency revenue declined 0.8%, faring slightly better than the projected 1.1% drop.
EBIT for the quarter came in at ₹4,942 crore, down from ₹5,442 crore in the March quarter. EBIT margin contracted sharply to 16.3% from 17.9%, mainly due to lower employee utilisation and increased spending on generative AI and market expansion efforts.
As a result, HCLTech revised its FY26 EBIT margin guidance to 17–18%, down from the earlier range of 18–19%. On the positive side, it raised the lower end of its revenue growth forecast to 3–5%, up from 2–5%, which is in line with analyst expectations.
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