Noida, Apr 22 (APAC Media): Shares of HCL Technologies tumbled nearly 10 per cent on April 22, 2026, after the company reported weaker-than-expected fourth-quarter results and flagged a cautious revenue outlook for FY27, sparking a broad sell-off across IT counters.
The company posted Q4 FY26 revenue of about Rs 33,981 crore, registering year-on-year growth of roughly 12 per cent, while net profit stood at Rs 4,488 crore, showing modest growth.
However, both figures missed market expectations, weighing on investor sentiment. Sequential revenue growth remained largely flat, indicating slowing momentum across key business segments.
The sharp decline in HCL Technologies shares was driven more by its forward guidance than its quarterly performance.
The company projected FY27 revenue growth of 1%–4% in constant currency, falling short of market expectations of around 3%–5%.
Management highlighted that discretionary spending remains subdued, with clients delaying decision-making.
Additionally, two client-specific ramp-downs are expected to further impact growth.
This outlook has heightened investor concerns that a recovery in IT sector demand could take longer than previously anticipated.
Several brokerages adopted a cautious stance following the latest results from HCL Technologies, highlighting concerns over growth visibility and near-term performance.
Jefferies reportedly downgraded the stock to “Underperform” and lowered its target price, pointing to subdued guidance and limited upside in the near term. Other analysts echoed similar concerns, indicating that FY27 earnings estimates may need to be revised downward if demand conditions remain weak.
Despite the cautious outlook, brokerages maintained that the company’s long-term fundamentals remain stable. However, they warned that sentiment could stay under pressure in the short term until clearer signs of growth recovery emerge.
Analysts also noted that HCLTech had outperformed several of its peers in recent months, which led to elevated market expectations ahead of the results. When a stock is priced at a premium, even a slight earnings miss or conservative guidance can result in a sharper market reaction.
The broader sell-off also reflects rising unease across the IT sector, as investors closely monitor client spending patterns in key markets such as the US and Europe, where macroeconomic uncertainty continues to weigh on technology investments.
Disclaimer: The views and opinions expressed are those of experts and do not represent APAC Media. We are not liable for any financial decisions based on this content. This is for informational purposes only and not financial advice. Readers should consult a qualified financial advisor before investing.
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