HCL Technologies shares declined 4% on July 15 after the company reported weaker-than-expected Q1 results for FY26, sparking concerns among investors and analysts alike.
The IT services major posted a 10% year-on-year drop in consolidated net profit, which stood at ₹3,843 crore in the June 2025 quarter, compared to ₹4,257 crore in the same period last year.
Despite the profit dip, consolidated revenue rose 8% to ₹30,349 crore, up from ₹28,057 crore in Q1FY25, signaling steady growth in its top-line performance.
Profit Down, Revenue Up – A Mixed Bag
While the profit numbers fell short of expectations, the revenue growth of 8% brought some comfort to investors, showing that the company is still expanding its core operations.
HCLTech also revised its FY26 constant currency revenue growth guidance to 3–5%, slightly raising the upper limit from its earlier range of 2–5%. This minor revision suggests moderate optimism about future performance, despite the Q1 earnings blip.
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What Are Analysts Saying?
Brokerages had mixed reactions to the results. Some viewed the fall in profits as a temporary setback, while others remained cautious due to ongoing margin pressures in the sector.
The stock’s sharp 4% fall reflects investor nervousness, especially as other IT companies show signs of revival or resilience in Q1. Whether to buy, sell, or hold HCLTech now depends on one’s risk appetite and long-term view.
Should You Buy, Sell, or Hold?
If you’re a long-term investor, the steady revenue growth and revised guidance may offer some reassurance. However, the short-term dip in profit and muted market sentiment could lead to further volatility.
HCLTech’s Q1 result is a reminder that even strong IT players face challenges, especially in a dynamic global tech environment.
