HCLTech Shares Slide After Weak FY27 Outlook
HCLTech shares came under pressure after the company reported a softer-than-expected March quarter and issued a cautious FY27 outlook, triggering a negative market reaction. The stock fell sharply as investors focused on weaker guidance, slower client spending and delayed project ramp-ups across parts of the business.
HCLTech Share Price Falls After Q4 Results
HCLTech shares dropped sharply after the results, making it one of the sharpest reactions seen in the IT sector this earnings season. The selloff followed both a fourth-quarter miss on market expectations and concern that near-term growth may remain under pressure. The weak reaction also weighed on the broader IT sector sentiment.
HCLTech FY27 Guidance Disappoints Investors
The main trigger was the company’s FY27 revenue growth guidance, which came in at 1% to 4% in constant currency, below what many analysts had expected. HCLTech also pointed to a highly fluid business environment, with lower discretionary spending, delayed decision-making and project scale-downs from two American clients affecting visibility. These comments reinforced concerns that demand recovery in the IT sector may take longer than hoped.
AI Deals Strong But Near-Term Pressure Remains
Despite the weak guidance, HCLTech highlighted continued traction in AI-led services and said its annualised AI services revenue rose sharply in the quarter. For FY26, the company reported revenue of Rs 1,30,144 crore, up 11.2% year-on-year, with EBIT of Rs 22,397 crore and net income of Rs 17,361 crore. Even so, investors appear more focused right now on slower ramp-ups, sector-wide caution and the possibility of further target-price cuts by brokerages.
