Shares of HCL Technologies plunged more than 10 per cent after the company reported weaker fourth-quarter results and gave a cautious outlook for the coming year. The sharp fall erased nearly ₹38,000 crore from the company’s market value.
The stock was among the biggest losers in the market as investors reacted negatively to lower-than-expected earnings and slower growth guidance. It also dragged other IT shares lower during the session.
For the January-March quarter, HCL Tech posted a net profit of ₹4,488 crore. While the figure was higher than the same period last year, it was more than 6 per cent lower compared to the previous quarter. Revenue growth also came in below market expectations.
Analysts said investors were mainly concerned about the company’s outlook for FY27, which appeared weaker than expected. Several brokerages downgraded the stock and cut their target prices after the results.
Market experts said global uncertainty, cautious client spending and delays in decision-making by customers continue to weigh on the IT services sector. Some large overseas clients are reportedly reducing project sizes or postponing new contracts.
HCL Tech management said near-term demand remains mixed, especially in key markets like the United States. However, the company said long-term demand for digital transformation, cloud services and artificial intelligence remains strong.
The weak update from HCL Tech also raised concerns about the broader Indian IT industry, which has been facing slower growth due to reduced technology spending by global clients. Shares of other major IT companies also came under pressure following the announcement.
Despite the disappointing market reaction, HCL Tech declared an interim dividend of ₹24 per share for shareholders.
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