India’s third-largest IT services major HCLTech has decreased its revenue growth guidance for FY26 to 2 percent to 5 percent year-on-year in constant currency terms. This comes in line with the lowering growth estimates of its industry peers amidst uncertainty surrounding business environment.
HCLTech’s revised guidance represents a 250 basis point reduction at the lower end compared to its FY25 forecast. However, the company has retained its operating margin guidance at 18–19 percent for the full year of FY26.
In January, for the full year FY25, HCLTech had increased its revenue growth guidance in constant currency (CC) terms in the lower end by 100 basis points. The revenue growth ultimately stood at 4.7 percent for FY25, in line with the guidance of now 4.5-5 percent.
This has been an industry-wide situation as IT companies are grappling with declining discretionary spending by customers along with the US President Donald Trump's new tariffs, which been paused temporarily, causing further uncertainties.
Speaking at HCLTech's Q4 earnings conference, CEO and MD, C Vijayakumar said, "We haven't seen any specific tariff impact so far. But we expect tariff impact to play out much faster in consumer and manufacturing segments. But once the impact plays out, all verticals will be affected."
"However, the biggest impact will be on the cost for clients and their intentions of using generative AI to drive efficiency of every aspect of business, will become the centre stage of all the conversations. While there is uncertainty and definitely a deterioration of discretionary spend, we think AI-led efficiency will become the big theme where we expect large opportunities. We have a strong pipeline. Though there is conservatism in the way we look at the lower end of our guidance, overall this is a great chance for us to create significant opportunities in the market," he added.
Among its peers, India’s largest IT exporter, Tata Consultancy Services (TCS), does not provide guidance. Wipro has forecast a revenue decline in the range of -1.5 percent to -3.5 percent for the first quarter of FY26, ending June 30, 2025 (Q1FY26). Infosys has projected FY26 revenue growth in the range of 0–3 percent, down from its FY25 guidance of 4.5–5 percent.
HCLTech on April 22 reported 8 percent on-year rise in net profit at Rs 4,307 crore for the quarter ended March 31, 2025, up from Rs 3,986 Crore in the same quarter previous fiscal. This is a seasonally weak quarter for the company due to weakness in product business and margin pressures.
HCLTech's revenue from operations rose 6 percent to Rs 30,246 crore in Q4FY25 as against Rs 28,499 crore in Q4FY24.
For the full year FY25, revenue growth was up by 6.5 percent to Rs 117,055 crore, from Rs 109,913 crore in FY24. This was a 4.7 percent growth in constant currency (CC) terms, in line with the company’s growth guidance of 4.5-5 percent for the full year.
Net profit for FY25 grew 10.8 percent to Rs 17,390 crores, against Rs 15,702 crore in FY24.
Ebit margin for FY25 came in at 18.3 percent, in line with the guidance of 18-19 percent.
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