HCLTech FY guidance stays muted despite $2.4 billion deal momentum

HCLTech reported Q1 revenue of $3,650 million (down 0.9% QoQ) with operating margin improving 40 bps to 16.9%, while net profit rose 3 percent YoY in rupee terms to ₹4,624 crore. Despite TCV rising to $2.4 billion from $1.9 billion in the prior quarter, the company kept its FY25 revenue growth guidance unchanged at 1-4 percent in constant currency, with margin band of 17.5-18.5 percent, which disappointed the street. HCLTech also announced ₹3,500 crore capex for a 50 MW datacentre facility to deliver AI solutions, similar to TCS's ₹55,000 crore datacentre investment announced last year.