HCL Technologies shares dropped more than 9% following disappointing March quarter results and cautious FY27 guidance. While year-on-year profit and revenue grew, sequential declines in constant currency and margins fell short of expectations. Brokerages including JPMorgan and HSBC cut their target prices in response.
HCL Technologies released its March quarter results, showing year-on-year growth in profit and revenue. However, sequential weakness and a decline in constant currency revenue disappointed investors on Dalal Street. The company also announced new deal wins, though market watchers raised concerns about their quality and sustainability amid geopolitical uncertainties. Analyst Aditya Shah noted that margins and constant currency growth will remain under pressure due to operational efficiency challenges. The company provided forward guidance leaning towards the lower end of projections, specifically forecasting muted growth of 1-4% for FY27. This outlook cited weak discretionary demand and client-specific headwinds as key factors. Shares of HCL Tech tanked over 9% in response to the results and guidance. Major brokerages, including JPMorgan, HSBC, and three others, trimmed their target prices on the stock. Market sentiment turned cautious as investors weighed the company's performance against broader IT sector trends.
