HCLTech Q4 Results: Net profit grows 4.2%, FY27 growth seen at 1-4%; declares dividend

HCLTech' share price plummeted 9% in early trade after disappointing Q4FY26 results and a miss on guidance. In fact, the entire IT sector pack is under pressure after the IT services firm posted a 4% net profit in Q4. The revenue grew 12.3% year-over-year (YoY). Brokerages have trimmed their growth estimates for the IT services company on the back of the soft FY27 guidance.

The company slashed growth guidance to 1% to 4% YoY in constant currency (CC) terms for FY27, from 4% to 4.5% YoY CC in FY26. Overall growth for FY26 also missed the earlier guidance.

On the operating front, the EBIT margin is estimated to be in the range of 17.5%-18.5%, and the EBIT margin to be in the range of 17.5% and 18.5%.

HCLTech delivered resilient fourth-quarter results, posting a 2.4% year-over-year constant currency revenue increase despite ongoing macroeconomic softness. A key growth driver remains the company's strategic expansion in Artificial Intelligence and capability-led acquisitions, highlighted by its $155 million quarterly Advanced Artificial Intelligence revenue.

According to Gartner, the generative Artificial Intelligence models market is forecast to grow 107.3% in 2026 to reach $33 billion. Despite these positive indicators, the overall Information Technology industry must navigate persistent challenges, such as delayed discretionary spending and softness in traditional software product lines. As we transition into the 2027 fiscal year, providers that integrate specialized Artificial Intelligence models into core business workflows and pursue targeted, Intellectual Property-driven acquisitions are expected to secure long-term competitive advantages.

Shiv Walia, Chief Financial Officer at HCLTech, stated that the company delivered resilient FY26 results with revenues at Rs 1,30,144 crores, up 11.2 percent YoY, and EBIT at Rs 22,397 Crores, up 4.6 percent YoY.

“Net Income for the year came in at Rs 17,361 Crores (13.3% of revenue), translating to an EPS of Rs 64.01. Excluding the impact of restructuring costs, EBIT and Net Margin came in at 17.9%, and 13.8%, respectively.”

As per HCLTech's investor presentation, INR EBIT Rs 5,620 crore, down 10.6% QoQ but up 3.3% YoY. The company's total contract value (including new deal wine) for Q4 stood at $1,936 million.

HCLTech’s total headcount at the end of Q4 FY26 stood at 2,27,181, rising 1.6 percent YoY as its employee count in Q4 FY25 was 2,23,420. The company’s attrition rate in Q4 FY26 stood at 12.5 percent, compared to 13 percent in the same period last year.

According to the company's investor presentation, its CC revenue declined 3.3% QoQ but rose 2.4% YoY, its revenue from the Advanced AI stood at $155 million, up 6.1% sequentially in constant currency terms.

Commenting on the company's financial performance, C Vijayakumar CEO & Managing Director of HCLTech said “HCLTech delivered superior revenue growth of 3.9% in constant currency, 10 bps below our guidance and 17.2% operating margin within our guidance, in a year marked by uncertain demand environment."

He added, " During the quarter, our performance came below our expectations due to softness in certain parts of our business due to lower discretionary spend and delayed decision making. Our new AI-led service offerings are getting traction in the market and is reflected in annualized Advanced AI revenues crossing $620 million in Q4. Our #1 priority in FY27 is to ensure the company is positioned right to take advantage of AI opportunities for multi decade value creation.”

For FY26, HCLTech's total people count stood at 227,181. The company said it added 1,712 freshers and its attrition over the last twelve months fell sequentially at 12.5% from 13.04%

For FY27, HCLTech has given out a revenue growth guidance of 1-4% YoY in constant currency terms.

On a sequential basis, the company's consolidated net profit rose 10% at Rs 4,488 crore against Rs 4,076 reported in the previous quarter. HCLTech's revenue from operation on a sequential basis was pegged flat at Rs 33,981 crore against Rs 33,872 crore.

The Record date for the payment of the Rs 24 per share interim dividend has been fixed for Saturday, April 25, 2026, and the payment date of the said interim dividend shall be May 5, 2026.

The Board of Directors has declared an Interim Dividend of Rs. 24/- per equity share of Rs. 2/- each of the Company for the Financial Year 2026-27.

The company’s revenue from operations for the reporting quarter stood at Rs 33,981 crore, rising 12.3% YoY from Rs 33,872 crore reported in the same quarter last year.

For Q4FY26, HCLTech posted a net profit of Rs 4,488 crore crore, up 4.2% from its Q4FY26 consolidated net profit of Rs 4,307 crore crore.

HCLTech's stock closed at Rs 1,439 on Tuesday, about 0.7 percent higher in the intra-day trade. In the last 5 trading sessions, the company's stock has declined by 1.5 percent.

While in the last one month, HCLTech's stock gained 5.9 percent; in the last one year period the company's share price has declined by 2.9 percent.

Senior management's commentary over AI and its revenue generation from various segments would remain a core focus of the result. The IT major's dividend is also much awaited. While, its competitor Wipro delivered a muted performance brokerages expect a similar result from HCLTech as well, estimating a fall in its sequential profit

Nuvama pegs HCL Tech’s revenue at over Rs 34,204 crore, marking a YoY rise of 13% and a sequential growth of 1%. “Services segment is likely to report 0.4% CC QoQ growth,” it added.

The brokerage states that HCL Tech’s EBIT margin is likely to decline on a sequential basis, impacted by software business seasonality, wage hikes, and restructuring expenses. The brokerage pegs the IT firm’s EBIT at over Rs 5,890 crore, indicating a decline of more than 6% QoQ. However, on a YoY basis, it expects EBIT to rise by over 8%.

HCLTech financial results are expected to come out soon. Following the announcement of its Q4 results, the company has scheduled a conference call for 07:30 PM (IST) with the senior management, for 60 minutes to discuss the results followed by the detailed question-answer session.

The company's share price ended today's trade flat at Rs 1,439

The top‑5 IT services firms consensus earnings growth is close to the historical average for the Nifty. However, what stands out is the big valuation gap, especially after the sharp correction seen in the IT space on Ai-led disruption fear. 

Institutional ownership also remains near all‑time lows in the sector. However, lateral data supports the cyclical recovery reflected by the increased IT hiring activity, optimistic management commentary, healthy cloud revenue growth and favourable currency movement. All eyes are now on HCLTech management’s comments today after the results announcement.

For FY25, the company paid out a final dividend of Rs 10 per share. In Q3FY25, the IT major had paid out an interim dividend of Rs 14.5 per share, while for Q1FY25 it had declared an interim dividend of Rs 2.75 per share.

HCLTech recently appointed Kimsuka Narsimhan as an independent director of the company. Narsimhan has been appointed for a term of five consecutive years, his appointment came in effect from Monday, April 20.

Most brokerages expect HCLTech to report modest revenue growth in constant currency terms. According to BNP Paribas, the low base could help though the sequential improvement in revenue is likely to be moderate. 

Speaking on the broader IT services revenue across sectors, BNP Paribas pointed out that “while the overall demand commentary remains steady QoQ, telecom and tech verticals are showing signs of a recovery while manufacturing, retail & CPG, and healthcare verticals should remain muted.”

Looking at the longer time frame, HCLTech's stock has declined by more than 3% in the past six months. Over the past one year the company's stock has fallen by nearly 3%. So far in 2026, the stock has gone down by nearly 12%.

In the closing trade the company's share price stood at Rs 1,438.3, up 0.7% from its previous close. Over the past five trading sessions the company's stock has declined by 1.6%, while over the past one month it has climbed up by nearly 6%.

The tech sector continues to be in focus. HCLTech is the big stock to watch out for. The company will be declaring its fourth quarter earnings today.  The revenue outlook from the embedded AI initiatives is one of the big monitorable this quarter. In the light of the AI revenue reported by Wipro and TCS last week, this is the key focus area for the street. 

Apart from that, investors are also going to watch out for the management commentary on deal wins, outlook and the hiring expectations amid a weak rupee environment.

Some industry observers suggested that near-term recovery could be delayed by geopolitical tension, impacting deal closures and tech spending. Going forward, management commentary and macro trends will be key monitorable. 

The impact of the ongoing tension across the Middle East is another key factor for the tech companies to watch out for. According to the analysis by BNP Paribas, HCLTech could potentially guide “3.5% YoY” growth in revenue for FY27. 

For FY27, they pointed out that their guidance assumptions “are not assuming any material impact from the Middle-East conflict and could be at risk.”

Experts estimate that currency tailwinds could offer an earnings cushion for tech majors.  The IT Services sector is expected to see moderate Q4FY26 growth due to weak demand and ongoing macro uncertainties, with clients focusing on cost optimisation

BNP Paribas expects EBIT margins of tech companies across their coverage “to largely hold steady or expand.” This is mainly on the back of the rupee’s weakness against the US dollar through the Q4. However, they added that for HCLTech along with LTIMindtree and MphasiS,  margins may moderate. 

Axis Securities maintaining a 'BUY' on the IT major said that the overall growth of the Indian IT sector is expected to moderate.

"The IT Services sector is expected to see moderate Q4FY26 growth due to weak demand and ongoing macro uncertainties, with clients focusing on cost optimisation.... Near-term recovery could be delayed by geopolitical tensions, impacting deal closures and tech spending. Going forward, management commentary and macro trends will be key monitorable," the brokerage said in its report.

Anand Rathi brokerage in its report highlighted HCLTech as one of its top picks, commenting that "Leading growth among top- 5 IT services firms (median q/q USD CQGR of 1.3% vs 0.4% peer median over last 8 qtrs), supported by a diversified revenue engine across IT Services (~74%), ER&D (~17%), & HCLSoftware (~10).

Kotak estimates the company’s EBIT at over Rs 6,108 crore, reflecting a sequential decline of nearly 3% but a YoY rise of nearly 13%. The brokerage said that EBIT performance will be impacted by restructuring costs and wage revisions. It adds that the impact of higher costs may be partly balanced by gains from rupee depreciation.