HCL Tech Posts Q4 Earnings: IT Stock Sees 1.5% Gain Ahead of Release, Dividend Implications

HCL Technologies Set to Announce Q4 Results Amid Positive Market Sentiment

HCL Technologies shares remain in focus ahead of the company's Q4 results announcement on Tuesday, 21 April. The IT major's board will also consider the payment of an interim dividend.

HCL Tech Share Price Trades Higher Amid Broader Market Sentiment

Ahead of the Q4 results, HCL Tech share price was trading higher on the BSE, driven by a positive broader market sentiment. This development comes as a precursor to the company's earnings announcement, which is expected to reveal its March quarter performance.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Brokerage Estimates for HCL Tech Q4 Results

Brokerages expect HCL Technologies to post around 14-15% year-on-year (YoY) growth in revenue, led by the financial services and hi-tech verticals. However, the auto vertical is expected to remain soft. Meanwhile, adjusted PAT is seen rising in the range of 6-12% YoY, according to analyst estimates.

Kotak Institutional Equities' Expectations

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Kotak Institutional Equities stated that the EBIT margin has an impact of 80 bps from the restructuring charge. Additionally, the tailwinds of rupee depreciation will likely be offset by headwinds from wage revision (50 bps). The brokerage also expects a healthy TCV of deal wins in the $2.5 billion range.

HCL Tech Guidance Expectations

In terms of revenue growth, ICICI Securities sees the company guiding for 4-6% YoY CC organic revenue growth and EBIT margin of 17-18% for FY27. For FY27, the absence of employee restructuring costs (~50bps) would be a margin tailwind, which could be offset by headwinds from large deal ramp-up.

Kotak Institutional Equities Raises Margin Guidance

KIE expects HCLT to raise the margin guidance band to 17.5-18.5% for FY2027E, up from 17-18% earlier. The FY2026 margin guidance band was impacted by 60 bps due to a restructuring charge. In addition, recent rupee depreciation will also aid margins.