Nifty IT Index Plunges 3.5%, HCL Technology Among Worst-Performing Stocks Ahead of Q4 Earnings

IT Stocks Tumble Amid Weak Q4 Numbers

The Indian IT sector took a hit on Wednesday morning, with the Nifty IT index slumping by 2.88% to 30,816.10. The decline was largely driven by weak quarterly numbers from major players in the sector.

HCL Tech Leads the Decline

HCL Tech, which reported its quarterly numbers on Tuesday, was the worst-hit among major IT stocks, tumbling by 8.90% to Rs 1,312.90. The company posted a smaller-than-expected fourth-quarter revenue and net profit due to clients holding back technology spending due to geopolitical headwinds. HCLTech reported a 4% rise in consolidated net profit at Rs 4,488 crore for the quarter ended March 31, 2026, which fell short of analysts' expectations of Rs 4,657 crore.

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Other IT Stocks Also Take a Hit

Persistent Systems declined by 4.32% to Rs 5,099.80 after softer March quarter numbers. The company's constant currency revenue growth stood at 3.4% for the quarter, marginally below estimates of 3.5-4%, while EBIT margins came in at 16.3%, missing expectations of 16.9%. Total deal wins declined by 10% sequentially to $600.8 million from $674.5 million.

Tech Mahindra slipped by 2.57% to Rs 1,462.30 ahead of its quarterly results announcement on April 22. According to CNBC-TV18 poll estimates, Tech Mahindra is expected to post a steady performance for the fourth quarter, with modest sequential revenue growth and an improvement in margins.

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Oracle Financial Services Bucks the Trend

Oracle Financial Services bucked the trend, rising by 0.73% to Rs 7,989.00. Infosys was trading 2.54% lower at Rs 1,279.90, with the IT major set to announce its earnings for the March quarter on Thursday. The company's net profit is estimated at an average of Rs 7,508.6 crore, up 4% year-on-year from Rs 7,218 crore a year ago.