Brokerages tracked by Business Standard estimate HCLTech’s net profit at an average of ₹4,716 crore, compared with ₹4,307 crore a year ago, up 10 per cent year-on-year (Y-o-Y). Sequentially, the profit after tax (PAT) is expected to rise marginally by 0.77 per cent from ₹4,680.6 crore in Q3FY26.
The company’s revenue for the quarter is expected to rise around 14 per cent Y-o-Y to ₹34,398.7 crore, on average, from ₹30,246 crore a year ago. On a quarter-on-quarter (Q-o-Q) basis, revenue is likely to grow 4 per cent from ₹33,872 crore in Q3FY26.
Investors and analysts will monitor management’s commentary on:
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FY2027E revenue guidance -
Pace of new revenues pools possible with Generative Artificial Intelligence (GenAI) that can offset revenue deflation. -
How the company has baked in recent deterioration in macro in the guidance. -
Profitability in cost take-out and vendor consolidation deals. -
GenAI risks to products business. -
Demand environment required for growth to accelerate to high single digit. -
CY26 IT budget and any impact from increased macro and geopolitical uncertainties on the pace of decision making and tech spending. -
AI-led productivity impact and demand trends across banking, financial services and insurance (BFSI) and Engineering Research and Development (ER&D).
How will HCLTech perform in Q4FY26:
Kotak Institutional Equities: The brokerage expects revenue in constant currency (CC) to decline 1.7 per cent Q-o-Q, but to grow 4.4 per cent Y-o-Y. Growth will be led by information technology (IT) business (+1.1 per cent), offset by a seasonal decline in product revenue.
Expect reported Earnings before interest and tax (Ebit) margin of 17.7 per cent and underlying Ebit margin of 18.5 per cent. Ebit margin has an impact of 80 basis points (bps) from the restructuring charge. Tailwinds of Rupee depreciation will likely be offset by headwinds from wage revision (50 bps).
The IT company is anticipated to record a healthy total contract value (TCV) of deal wins in $2.5 billion range. The company forecasts company to guide for 3-5 per cent revenue growth excluding acquisition of Hewlett Packard Enterprise’s (HPE’s) telco solutions group. Services business revenue growth guidance is likely to be in 4-6 per cent range. Margin guidance band is likely to be raised to 17.5-18.5 per cent for FY2027E, from 17-18 per cent earlier. FY2026 margin guidance band was impacted by 60 bps due to restructuring charge. In addition, recent Rupee depreciation will also aid margins.
Emkay Global Financial Services: Analysts have build in 1.2 per cent Q-o-Q USD revenue decline after factoring in 40 bps CC tailwinds and adverse software business seasonality. Ebit margin is likely to be narrowed by 130 bps sequentially on the back of software business seasonality. The company is expected to guide 3-6 per cent CC revenue growth (including Jaspersoft and HPE’s Telco solution business), with Ebit margin guidance of 17.5-18.5 per cent.
Motilal Oswal Financial Services: The brokerage expects Service (IT + ER&D) revenue growth to remain decent, supported by deal momentum and no major deflation seen. It anticipates 1.5 per cent Q-o-Q CC services growth.
Consolidated HCL revenue may decline 0.9 per cent Q-o-Q CC, mainly due to product seasonality (-23 per cent Q-o-Q), dragging overall growth. Margins may contract 140 bps Q-o-Q, driven by 50–60 bps wage hikes, restructuring headwinds, and products & platforms (P&P) decline.
We believe BFSI and Hi-tech should perform better, while Manufacturing (auto) and ER&D may remain under pressure. FY27 services growth is anticpated at 3–6 per cent Y-o-Y CC with stable Ebit margin of 17–18 per cent.
Nuvama Institutional Equities: The brokerage expects HCLTech to report a revenue decline of -1.6 per cent Q-o-Q in CC and -1.2 per cent QoQ in USD—primarily driven by P&P (-17 per cent Q-o-Q). Services segment is likely to report 0.4 oer cent CC Q-o-Q growth.
Ebit margin may to decline 130 bps Q-o-Q, impacted by software business seasonality, wage hike and restructuring expense. HCLTech is expected to provide FY27 revenue growth (3–6 per cent CC Y-o-Y) in IT Services and margin (17.5–18.5 per cent) guidance.
Disclaimer: Views and outlook shared belong to the respective brokerages and analysts and are not endorsed by Business Standard. Readers are advised to exercise discretion.