HCL Technologies Limited has informed the Exchange regarding a press release dated July 14, 2025, titled "Investor Release Q1 FY 2026".
HCLTECH · price
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Awaiting price reaction for this filing.
HCLTech reported Q1 FY26 revenue of ₹30,349 Cr ($3,545M), up 8.2% YoY in INR but only 3.7% YoY in constant currency, with CC revenue dipping 0.8% QoQ. Net Income fell sharply to ₹3,843 Cr, down 9.7% YoY and 10.8% QoQ, as EBIT margin compressed to 16.3% (from 18.0% in Q4 FY25) due to lower utilization and higher GenAI and go-to-market investments. New deal TCV stood at $1,812M, and the company guided FY26 revenue growth of 3–5% in CC with EBIT margin of 17–18%, signaling an expected recovery from Q1 levels. Cash generation remained strong with LTM FCF/NI at 121% and ROIC improving 353 bps YoY to 38.1%, and the company declared a ₹12/share dividend, marking 90 consecutive quarters of payouts.
The sharp QoQ margin drop and YoY decline in net income may pressure the stock in the near term, especially as Q1 numbers underperformed expectations. However, the FY26 margin guidance of 17–18% points to management confidence in recovery from current lows, which could provide some support. Investors should track execution on margin restoration and deal pipeline conversion over the coming quarters.