HCL Technologies Shares Fall ~3% After Q1 FY26 Profit Slips 9% YoY to $450 Mn
By Shishta Dutta | Published at: Jul 15, 2025 01:05 PM IST
Mumbai, July 15, 2025 – HCL Technologies Ltd (NSE: HCLTECH, BSE: 532281) witnessed its shares plummet nearly 3% in morning trade to ₹1,569.50 on Tuesday (12:15 PM), after touching a new intraday low for the session. The fall in the share price is attributed to the Q1 FY26 performance, where the company posted a 9.3% year-on-year decline in consolidated net profit to $450 million, down from $496 million in Q1 FY24, even as revenue grew modestly by 5.4%. The net profit decline is due to two critical reasons: a higher operating expense ratio and one-off client bankruptcy, as reported by the company.
Market Performance
As a major Nifty 50 constituent, HCL’s decline partly offset gains from other sectors, affecting the overall index performance in the early hours. The Nifty 50 opened in green, rising ~0.23% to 25,138 early in the day. However, the index reached 25,193.30 by 12:15 PM (0.44% higher than the previous close), largely due to the stellar performance of top gainers like Hero MotoCorp, Bajaj Auto, and Sun Pharma that pushed it forward.
The stock opened at ₹1,590 and declined steadily, hitting the day’s low of ₹1,555 by 9:59 AM IST. By 12:15 PM IST, the share reached ₹1,569.50 (3.11% down from the previous day’s close).
Key Q1 FY26 Consolidated Financials (USD Millions)
| Particulars | Q1 FY26 (Jun 2025) | Q1 FY25 (Jun 2024) | YoY Growth |
|---|---|---|---|
| Revenue | 3,545 | 3,364 | 5.4% |
| Operating Profit | 578 | 575 | 0.5% |
| Profit Before Tax | 607 | 670 | -9.4% |
| Net Profit | 450 | 496 | -9.3% |
| Basic EPS (USD) | 0.17 | 0.18 | -5.6% |
Segment-wise Revenue Performance:
| Segment | Q1 FY26 Revenue | Q1 FY25 Revenue | YoY Growth |
|---|---|---|---|
| IT & Business Services | 2,623 | 2,507 | 4.6% |
| Engineering & R&D | 604 | 534 | 13.1% |
| HCL Software | 318 | 323 | -1.5% |
The strong performance in Engineering and R&D services was offset by flat growth in the HCL Software segment and muted growth in IT services.
Market Snapshot (as of 12:15 IST, July 15, 2025)
| Metric | Value |
|---|---|
| Last Traded Price | ₹1,569.50 |
| % Change | -3.11% |
| Previous Close | ₹1,619.80 |
| Day High / Low | ₹1,621.40 / ₹1,555.00 |
| 52-Week High / Low | ₹2,012.20 / ₹1,302.75 |
| Volume (Shares) | 58.74 lakh |
| Traded Value | ₹930.56 crore |
| Market Cap | ₹4,22,029 crore |
The sell quantity (3.37 lakh shares) outweighed the buy quantity (2.44 lakh shares), indicating continued pressure from institutional sellers.
Dividend & Payouts
Despite the dip in quarterly profit, the board declared an interim dividend of ₹12 per share, continuing its 22-year track record of quarterly payouts.
Management Commentary
There was no earnings call or explicit management commentary available at the time of publication, but segment-level data suggests pricing pressures and slower ramp-ups in software licenses have weighed on profitability, even as Engineering and R&D outperformed.
Strategic & Financial Position
- Cash and cash equivalents stood at $994 million, with an additional $1.64 billion in other bank balances.
- Debt remained stable with $268 million in borrowings.
- Free float market capitalisation stood at ₹1.64 lakh crore.
Company Overview
HCL Technologies Ltd, listed on NSE and BSE, is a leading global technology firm offering services in IT & Business Services, Engineering and R&D, and IP-led HCL Software solutions. The company is part of the NIFTY 50 index and has maintained uninterrupted dividend payouts for over two decades.
REF: https://nsearchives.nseindia.com/corporate/HCLTECH_14072025174700_IFRS.pdf
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