HCLTech Continues Slide Since Earnings as Investors Remain Rattled by Outlook

Mumbai, April 24: Shares of HCLTech fell as much as four percent today as India’s third-largest IT services company continued its slide that started ever since its results rolled out on April 21.

The stock is down 15 percent over three days after company reported a weaker-than-expected March quarter and issued a cautious outlook for FY27.

Double Trouble

The double disappointment has also raised concerns about the near-term trajectory of India’s $300-billion IT sector.

At the time of writing, the stock was down four percent at Rs 1,204.

HCLTech reported modest growth in the March quarter, with revenue and margins falling short of analyst expectations, even as net profit showed a slight year-on-year uptick. More importantly, the company guided for revenue growth of just 1–4% in constant currency for FY27, with its services business expected to grow 1.5–4.5%—the weakest outlook in at least six years.

Muted Future

The muted guidance has been a key overhang, signalling that demand conditions remain fragile, particularly in discretionary spending segments. Analysts have pointed to delays in project ramp-ups, client-specific challenges, and a slowdown in deal conversions as factors weighing on growth visibility. 

Shares have slid as much as 15% ever since the results dropped. Source: NSE

The market reaction has been swift and unforgiving as HCLTech’s shares have dropped as much as 15% following the results. The sell-off has also spilled over to peers such as Infosys and TCS, pulling down the Nifty IT index as concerns around sector-wide demand intensify.

Targets Cut

Brokerages have responded by cutting price targets and trimming earnings estimates, citing weaker growth prospects and margin pressures. Analysts note that the company’s historical premium valuation—built on its ability to outgrow peers—may now come under pressure as that growth differential narrows. 

Adding to the caution is the broader macro environment. Global economic uncertainty, coupled with tighter client budgets and the evolving impact of AI-led efficiency measures, is prompting companies to rethink IT spending. This has led to smaller deal sizes and slower decision-making cycles, further clouding the outlook for large IT services firms. 

While HCLTech continues to invest in emerging areas such as artificial intelligence, the near-term narrative remains dominated by weak visibility and execution challenges. For investors, the message is clear: in a market increasingly driven by forward guidance, even steady earnings are not enough if the outlook disappoints.

For now, HCLTech’s sharp fall has become emblematic of a broader shift in sentiment—where optimism around tech spending is giving way to caution, and the sector’s recovery timeline is once again being pushed further out.

Source:

• NSE
• https://www.nseindia.com/get-quote/equity/HCLTECH/HCL-Technologies-Limited