HCL Tech Releases Q4 FY26 Earnings: Margins and Software Segment in Spotlight as Market Awaits FY27 Guidance
HCL Technologies Set to Report Mixed Q4 FY26 Performance
HCL Technologies is expected to report a mixed Q4 FY26 performance on Tuesday, with steady year-on-year growth but weaker sequential numbers. Street estimates from an average of seven brokerages suggest revenue growth of around 14% YoY, while profit after tax is likely to rise about 9% YoY.
The company's performance is expected to be impacted by seasonality in the high-margin software business, which is expected to drop around 22%–23% QoQ after a strong December quarter. However, the services segment, which forms the core of HCL Tech's operations, is expected to remain stable, with brokerages factoring in 1%–1.5% QoQ growth in IT services and ER&D. This is supported by steady deal execution and demand in key verticals such as BFSI and high-tech.
| Brokerage | QoQ CC Revenue Growth Estimate |
|---|---|
| Jefferies | -1.6% |
| Motilal Oswal | -0.9% |
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Margins are likely to remain under pressure due to wage hikes and restructuring costs, along with the seasonal decline in the software segment. The results also follow weak earnings from peer Wipro, adding to cautious sentiment in the IT sector.
Several other companies are scheduled to announce Q4 FY26 results today, including Nestle India, Persistent Systems, 360 ONE WAM, Tata Investment Corporation, Tata Elxsi, Central Mine Planning & Design Institute, Transformers and Rectifiers India, Powerica, Sunteck Realty, Cyient DLM, Rajratan Global Wire, NDL Ventures, Mahindra EPC Irrigation, and DB (International) Stock Brokers.
Meanwhile, Infosys, Reliance Industries, Tech Mahindra, Trent, Axis Bank, and Adani Green Energy are among the marquee companies to release their Q4 results 2026.
The ongoing Q4 FY26 earnings season will be closely watched by market participants, with a focus on earnings commentary, particularly on margins and demand outlook. Companies such as HDFC Bank, ICICI Bank, HCL Technologies, Infosys, Tech Mahindra, Havells, IndusInd Bank, M&M Finance, and Shriram Finance are scheduled to announce their results, providing valuable insights into the performance of the Indian economy.
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Investor Takeaway
Investors should focus on HCL Tech's FY27 guidance for future growth prospects.
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