IT services major HCL Technologies is all set to report its Q1FY26 results today (July 14). “The company will announce the first quarter FY 2026 results, ended June 30, 2025, on Monday, July 14, 2025, post-closing of Indian stock markets.” it said in a regulatory filing. After the release of the Q1 numbers, the leadership team will address a press conference at 8:00 pm for 60 minutes to discuss the results followed by the detailed question-answer session.
According to analysts, HCLTech is likely to post a modest sequential revenue decline due to the seasonal softness in the IT services business. The seasonal softness, analysts said, may have been exacerbated by weak demand amid persistent tariff-related uncertainty. The consensus points to a currency-constant (CC) revenue decline of around 0.8 per cent quarter-on-quarter, driven by weakness in both the services and products segments, each expected to drop about 0.8 per cent QoQ.
HCL Tech Q4FY25 performance
For the fourth quarter of FY25, HCLTech had posted a profit growth of 8.05 per cent at Rs 4,307crore in comparison to Rs 3,986 crore recorded during the corresponding quarter of previous financial year. It had posted revenue from operations at Rs 30,246 crore, recording a growth of 6.13 per cent as against Rs 28,499 crore reported during the fourth quarter of FY24.
The company board had also declared an interim dividend of Rs 18 per equity share of Rs 2 each of the company for the financial year 2025-26, bringing the total to Rs 60/share for FY25.
HCLTech had also revised its FY26 revenue growth guidance to be between 2.0- 5.0 per cent YoY in CC terms.
During the post earnings call, CEO and MD C Vijayakumar had said, “We haven’t seen any specific impact so far. We see this playing out much faster in consumer and manufacturing segments. But if tariffs play foul, I don’t think any vertical would be left behind…all industries would be impacted.”
HCLTech Q1 results: Key expectations
HCLTech, according to analysts, is expected to reflect typical weakness associated with the June quarter. In an analysis report, Nomura said, “We expect revenue to decline by 1.5 per cent QoQ in CC in a seasonally weak quarter for products and stable services business, and annual productivity return to customers in services business.” Despite this, a cross-currency tailwind of approximately 214 basis points is anticipated to partially offset the decline when measured in USD terms.
InCred Equities said, “CC revenue to decline by 0.8 per cent QoQ as the traction in FSI, hi-tech and telecom verticals could be offset by subdued demand in the discretionary portfolio, automotive vertical and Europe geography.”
HCL Tech is expected to record a decent revenue growth on a year-on year basis while it may remain muted on a sequential basis. Adjusted profit after tax (PAT) may also remain muted yearly and, in fact, may decline quarterly.
EBIT margin, Kotak Institutional Equities said, will likely decline by 60 bps QoQ, in sync with decline in services business and the usual productivity pass resets. On YoY comparison however, EBIT margin will increase by 20 bps. JM Financial projected a 120bps EBIT margin decline led by impact of productivity pass-back and lower software sales. Analysts said that the EBIT margin will decline due to revenue weakness and INR appreciation.
Apart from key numbers, brokerage firms said that HCL Tech’s revenue growth and EBIT margin guidance for FY26 will remain unchanged. Nuvama said, “We anticipate HCLTech to maintain FY26 revenue growth (2- 5 per cent CC YoY growth in services) and margin (18-19 per cent).
In terms of deal wins, Kotak Institutional Equities projected a healthy TCV of deal wins at $2-2.5 billion range. “HCLTech management highlighted strong pipeline and likely closures of large deals in Q1FY26,” it said.
HCLTech Q1 results: Key things to watch out for
In terms of key monitorables, brokerage firms said, investor focus is expected to be on:
(1) impact of reciprocal tariff imposed by US on directly impacted segments of manufacturing and retail,
(2) nature of deals in the pipeline and likely closure timeframe,
(3) state of discretionary spending,
(4) pace of enterprise GenAI adoption, new opportunities consequent to AI adoption and likely deflationary impact,
(5) environment required to hit the aspirational margin band of 19-20 per cent,
(6) Commentary on ERS and Auto vertical in particular; any synergy benefit from CTG integration,
(7) dividend announcement,
(8) management commentary on FY26 guidance revision.
HCLTech Q1 results: Estimates from brokerage firms:
Nuvama
Revenue
Rs 30,218.60 crore; Up 7.7% YoY
EBIT
Rs 5,356.00 crore; Up 11.7% YoY
PAT
Rs 4,312.30 crore; Up 1.3% YoY
Nomura
Revenue
Rs 30,218.80 crore; Up 7.7% YoY
EBIT margin
17.1%
Kotak Institutional Equities
Revenue
Rs 30,353.60 crore; Up 8.2% YoY
EBIT
Rs 5,240.10 crore; Up 9.3% YoY
Adjusted net profit
Rs 4,211.00 crore; Up 1.8% YoY
InCred Equities
Revenue
Rs 30,383.20 crore; Up 8.3% YoY
Profit
Rs 4,179.10 crore; Down 1.9% YoY
EBIT
Rs 5,244.60 crore; Up 9.4% YoY
HDFC Securities
Net sales
Rs 30,347.00 crore; Up 8.2% YoY
EBIT
Rs 5,343.00 crore; Up 11.4% YoY
APAT
Rs 4,351.00 crore; Up 13.7% YoY
Elara Capital
Revenue
Rs 30,244.90 crore; Up 7.8% YoY
EBIT
Rs 5,162.90 crore; Up 7.7% YoY
Adjusted net profit
Rs 4,154.10 crore; Down 2.4% YoY
JM Financial
Revenue
Rs 30,251.80 crore; Up 7.8% YoY
EBIT
Rs 5,077.20 crore; Up 5.9% YoY
Net profit
Rs 4,017.30 crore; Down 5.7% YoY