HCL Technologies Share Price Falls Over 4% Following Q4 FY26 Results: Here’s Why?

HCL Technologies experienced a significant drop in share value, falling over 4% in today's session. Earlier this week it reported weaker than anticipated Q4 results and issuing subdued guidance for FY27.  

Q4FY26 Earnings Results and Metrics Miss 

HCL Technologies reported a net profit of ₹4,488 crore for Q4FY26, a 10.1% sequential rise and a 4.2% year-on-year increase.  

However, this was below estimates that pegged the profit at ₹4,696 crore.  

Revenue reached ₹33,981 crore, rising 0.3% quarter-on-quarter and 12.4% year-on-year, again falling short of expectations. In dollar terms, revenue was $3.68 billion against an estimate of $3.76 billion. 

Operational Challenges 

The operating performance also disappointed, with the EBIT falling 10.6% sequentially to ₹5,620 crore, causing margins to contract to 16.5% from 18.6% in the previous quarter, missing the estimate of 17.6%.  

Constant currency revenue declined 3.3% sequentially, indicating weakness in the software segment, significantly affecting overall performance. 

Attribution and Guidance 

The downturn was attributed to lower discretionary spending and delays in decision-making, especially in telecom, alongside cancellations of certain SAP programmes.  

While there was modest growth in IT and business services, along with the ER&D segments, the decline in software revenue weighed heavily. 

Read More: HCL Technologies ₹24 Interim Dividend for FY27 Record Date is Tomorrow, April 25! 

FY27 Growth Guidance 

For FY27, HCL Tech forecasted revenue growth between 1-4% in constant currency, which fell below market expectations. Service growth is anticipated at 1.5-4.5%, while the EBIT margin is expected to be between 17.5-18.5%.  

Management indicated that focus remains on opportunities linked to AI, with annualised advanced AI revenues surpassing $620 million. 

HCL Technologies Share Price Performance  

As of April 24, 2026, at 10:45 AM, HCL Technologies share price on NSE was trading at ₹1,223.80 down by 4.21% from the previous closing price. 

Conclusion 

HCL Technologies’ stock fell substantially following lower-than-expected Q4 results and a disappointing forecast for FY27. The company faced multiple challenges, such as a decline in discretionary spending and project cancellations, affecting its financial performance and market position. 

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