HCLTech reduces FY26 growth guidance to 3-5% amid margin pressures

HCLTech

Information technology company HCLTech has reduced its revenue growth guidance for FY26, reflecting a more cautious outlook amidst ongoing margin pressures and market uncertainties.

The IT services major now expects constant currency revenue growth (CC) to range between 3 percent and 5 percent, slightly narrowing and lowering its earlier projection of 2 percent to 5 percent given at the end of FY25.

The company also tightened its operating margin guidance to 17-18 percent, down from the earlier range of 18-19 percent, which reflects near-term challenges.

In its Q1FY26 results, the IT services giant reported an operating margin of 16.3 percent, down from 18 percent in the previous quarter. This decline is possibly due to lower utilisation and continued investments in generative AI and go-to-market initiatives.

“AI has become integral to business growth of global enterprises,” said Roshni Nadar Malhotra, Chairperson, HCLTech. “Our capabilities and strategic partnerships ensure our AI-led solutions are practical and significant value creators to our clients.”

Meanwhile, the Noida-based company, on July 14, reported 10 percent decline in consolidated net profit at Rs 3,843 crore for the quarter ended June 30, 2025. The firm reported consolidated net profit of Rs 4,257 crore in the year-ago period.

HCLTech reported a net reduction of 269 employees during the June quarter (Q1FY26), bringing its total workforce to 2,23,151. Despite the marginal decline in headcount, HCLTech onboarded 1,984 freshers in Q1.

Voluntary attrition on a last twelve months (LTM) basis stood at 12.8 percent, unchanged from the same period last year.