HCLTech shares slipped over 4% after the company reported a 2.4% QoQ drop in net profit to ₹3,834 crore in Q1FY26, missing Street estimates. Revenue came in flat at ₹27,000 crore, with EBIT margin declining by 70 bps to 18.2%, reflecting ongoing pressure on costs and execution.
The stock hit ₹1,323 intraday as investors reacted to muted demand in BFSI and discretionary tech spend, coupled with a cautious management outlook. Despite healthy order booking, deal ramp-ups remained slow.
Brokerages were quick to flag concerns:
- One report warned of a potential 12% downside, citing weak growth visibility.
- Others noted that valuation comfort exists, but near-term triggers are limited unless margins stabilize and deal conversions pick up.
Peers like Infosys and TCS are also facing similar macro challenges, but HCLTech’s miss puts it under closer scrutiny in the near term.
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