HCLTech Cuts Full Year Growth Forecast to 1-4% YoY in Constant Currency for FY27

HCLTech Cuts FY27 Revenue Growth Guidance Amid Uncertainty

HCLTech, a leading IT services company, has reduced its full year revenue growth guidance for FY27 due to uncertainty in the business environment. The company has revised its guidance to 1-4 percent YoY in constant currency (CC) terms, down from 4-4.5 percent guided for FY26.

Despite missing its full year FY26 guidance, HCLTech's revenue grew 3.9 percent in CC. In contrast, the company has increased its EBIT margin guidance for FY27 to 17.5-18.5 percent, up from 17-18 percent in FY26. Excluding restructuring costs, HCLTech's EBIT margin for FY26 was 17.9 percent.

The company posted a smaller-than-expected fourth-quarter revenue and net profit on April 21, as clients held back tech spends due to geopolitical headwinds. HCLTech's consolidated net profit rose 4 percent to Rs 4,488 crore for the quarter ended March 31, 2026, falling short of analysts' expectations of Rs 4,657 crore.

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The company's consolidated revenue for the January-March quarter was Rs 33,981 crore, a 12.3 percent rise. However, this was below analysts' average expectations of Rs 34,236 crore, which also factored in the 4 percent decline of the Indian rupee against the US dollar during the quarter.

HCLTech has declared an interim dividend of Rs 24 per share of Rs 2 face value. The record date for the payment of the interim dividend is April 25, 2026, and the payment date is May 5, 2026.

C Vijayakumar, CEO & Managing Director of HCLTech, stated that the company delivered superior revenue growth of 3.9 percent in constant currency, 10 bps below its guidance, and 17.2 percent operating margin within its guidance, in a year marked by an uncertain demand environment. The company's AI-led service offerings are gaining traction in the market, with annualized Advanced AI revenues crossing $620 million in Q4.

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HCLTech's priority for FY27 is to position the company to take advantage of AI opportunities for multi-decade value creation.