HCLTech Shares Dip as FY27 Guidance Disappoints Despite Q1 Profit Growth

Shares of HCLTech experienced a more than 3% decline following the release of its first-quarter Fiscal Year 2027 earnings report. This downturn occurred despite the IT services giant reporting a robust 20% year-over-year increase in consolidated net profit, reaching Rs 4,624 crore. Revenue for the quarter also saw a significant rise, climbing 13% to Rs 34,579 crore. Investor sentiment was primarily impacted by HCLTech's retained constant currency guidance for FY27, which was perceived as conservative. The company reiterated its full-year revenue growth projection in the range of 1% to 4%. Services revenue growth is expected to fall between 1.5% and 4.5%, while the EBIT (Earnings Before Interest and Taxes) margin is forecast to be in the 17.5% to 18.5% range. These figures, consistent with prior guidance, fell short of market expectations for an upward revision, leading to the share price correction. The reaction underscores investor sensitivity to future growth outlooks, particularly within the competitive IT services sector. Despite strong headline profit and revenue gains, the reiterated guidance suggests a cautious approach from management regarding the immediate macroeconomic environment and client spending patterns. This cautious outlook by a major player in India's IT sector could have broader implications for how investors perceive the growth trajectory of the entire industry in the coming quarters.