Brokerages said the company's decision to maintain its constant currency revenue growth guidance of 1%-4% for FY27 suggests demand recovery is progressing slower than expected. While HCLTech reported record first-quarter deal bookings, analysts believe clients continue to defer discretionary technology spending amid macroeconomic uncertainty.

Several analysts have also lowered their expectations for India's IT services sector as global enterprises rein in non-essential technology investments. The growing adoption of advanced artificial intelligence is also seen reshaping traditional software services business models.

One foreign brokerage reiterated its 'underweight' rating, citing persistent weakness in discretionary spending and continued pressure in the telecommunications and manufacturing verticals. Another foreign brokerage maintained its 'underperform' rating, describing the unchanged revenue guidance as the key disappointment despite stronger-than-expected earnings and robust deal wins.

For the quarter ended 30 June 2026, HCL Technologies reported a consolidated net profit of Rs 4,624 crore, up 20.3% year-on-year and 3.0% quarter-on-quarter.

Revenue from operations increased 13.9% YoY and 1.8% QoQ to Rs 34,579 crore. In US dollar terms, revenue stood at $3.65 billion, rising 3.0% YoY but declining 0.9% sequentially. On a constant currency basis, revenue fell 0.5% QoQ while growing 2.6% YoY.

EBIT increased 18.0% YoY, with the EBIT margin improving to 16.9%, up 56 basis points YoY and 39 basis points QoQ. Excluding restructuring costs, EBIT margin stood at 17.5%.

The company reported its highest-ever first-quarter net new bookings of $2.4 billion, compared with $1.936 billion in the previous quarter. Revenue from advanced AI services grew 62.1% YoY and 10.6% QoQ in constant currency.

The board declared an interim dividend of Rs 12 per equity share.

HCLTech maintained its FY27 guidance of 17.5%-18.5% EBIT margin and 1%-4% constant currency revenue growth.

Among business segments, IT & Business Services, which accounted for 75.1% of revenue, grew 4.2% YoY in constant currency. Engineering & R&D Services recorded 0.3% growth, while HCLSoftware revenue declined 5.3%.

By vertical, Public Services posted the strongest constant currency growth at 12.0%, followed by Retail & CPG (10.1%), Technology & Services (7.3%), Financial Services (5.3%) and Manufacturing (3.7%). Telecommunications, Media, Publishing & Entertainment declined 10.9%.

Geographically, the United States remained the largest market, contributing 56.0% of revenue and growing 2.9% YoY in constant currency. Europe contributed 27.6% of revenue with 0.1% growth, while the Rest of the World grew 10.8%. India, which accounted for 3.3% of revenue, recorded the fastest growth at 16.9%.

Commenting on the results, CEO and managing director C. Vijayakumar said the company delivered its highest-ever first-quarter net new bookings, driven by strong demand for AI-led transformation initiatives. He added that improving operational efficiencies and margin expansion position HCLTech to outperform the market over the medium term.

HCLTech is a global technology company providing AI, digital, engineering, cloud and software services across more than 60 countries. It serves clients across industries including financial services, manufacturing, healthcare, technology, telecom, retail and public services.