HCL Tech Falls Despite Profit Surge

HCL Tech experienced a notable stock decline of over 3% on Tuesday, trading at Rs 1,183, despite announcing robust financial results for the first quarter of FY27. The IT services firm reported a 20% year-on-year increase in consolidated net profit, reaching Rs 4,624 crore, up from Rs 3,843 crore in the same quarter last year. Concurrently, revenue from operations grew by 13% year-on-year to Rs 34,579 crore.

Despite these positive figures, investor sentiment was dampened by the company's decision to maintain its FY27 constant currency guidance. HCL Tech anticipates overall revenue growth between 1-4% and services revenue growth of 1.5-4.5%, with an EBIT margin projected at 17.5-18.5%. This conservative outlook, coupled with the clarification that a significant July deal will impact revenue meaningfully only in Q1FY28, contributed to the stock's downward movement.