HCLTech, India’s third-largest IT services company, reported lower-than-expected revenue for the January-March quarter, citing global macroeconomic headwinds that continue to weigh on client demand.
The company posted a 6.1% increase in consolidated revenue, reaching ₹302.46 billion ($3.6 billion) in the fourth quarter of FY25. However, this came in slightly below analyst expectations of ₹302.75 billion, based on LSEG data.
Looking ahead, HCLTech forecasted revenue growth in the range of 2% to 5% for fiscal year 2026, beginning April 1. The guidance is more cautious compared to the 3% to 5% range projected by analysts, signaling ongoing demand uncertainty.
Net profit for the quarter rose 8.1% year-over-year to ₹43.07 billion, narrowly missing the average estimate of ₹43.56 billion.
Despite the challenges, HCLTech reported robust deal wins worth $3 billion for the quarter, up from $2.1 billion in the same period last year — a positive sign amid industry-wide caution.
India’s $283 billion IT sector is facing mounting pressure, with geopolitical tensions and economic policies — including former U.S. President Donald Trump’s tariff stance — contributing to the uncertainty.
Industry peers have also issued cautious outlooks. Tata Consultancy Services missed earnings expectations and flagged delays in discretionary spending, while Infosys forecast flat to 3% revenue growth for FY26.
