The HCL Tech share price plunged more than 9% on Wednesday, April 22, after HCL Technologies reported its Q4FY26 results, which fell short of market expectations. The stock opened at ₹1,345 on the NSE, significantly lower than its previous close of ₹1,441, and slipped further to an intraday low of ₹1,301.
The decline in HCL Tech share price reflects broader concerns among investors, as the stock has already lost over 10% in the past week and 2% over the last month. On a year-to-date (YTD) basis, the HCL Tech share price is down nearly 20%, while it has fallen 12% over the past year. However, on a longer horizon, the stock has delivered approximately 25% returns in three years and 36% in five years.
For the March quarter, HCL Technologies reported a 4.20% year-on-year rise in consolidated profit to ₹4,488 crore, compared to ₹4,307 crore a year ago. Sequentially, profit grew 10.11% from ₹4,076 crore in Q3FY26. Revenue from operations increased 12.35% YoY to ₹33,981 crore, though it remained largely flat on a quarter-on-quarter basis.
Despite the growth, the HCL Tech share price came under pressure due to weaker-than-expected constant currency performance. Revenue grew 2.4% YoY but declined 3.3% QoQ, missing Street estimates. In dollar terms, revenue rose 5.3% YoY but dropped 2.9% sequentially to $3,682 million.
Weak Margins and Sequential EBIT Decline Weigh on HCL Tech Share Price
The company reported EBIT of ₹5,620 crore, up 3.3% YoY but down 10.6% QoQ, while EBIT margins stood at 17.7%, lower than 18% a year ago and 19.4% in the previous quarter. Analysts noted that these figures contributed to the negative movement in HCL Tech share price.
During the quarter, the company secured new deals worth $1,936 million, while full-year deal wins reached $9,323 million. However, the total contract value (TCV) fell short of analyst expectations. Additionally, the FY27 services revenue growth guidance of 1.5–4.5% was below projections, further impacting sentiment around the HCL Tech share price.
CEO and Managing Directo attributed the performance to weak discretionary spending and delayed decision-making by clients. He highlighted that the company’s AI-led offerings are gaining traction, with annualised advanced AI revenues crossing $620 million in Q4.
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On the shareholder front, HCL Technologies declared a dividend of ₹24 per share for the quarter, taking the total FY26 dividend to ₹60 per share. The record date is set for April 25, with payment scheduled for May 5.
Brokerage firm JM Financial downgraded the stock to ‘reduce’ with a target price of ₹1,350, citing lower growth visibility and trimming earnings estimates. The firm noted that services revenue and margins came in below expectations.
Meanwhile, Motilal Oswal maintained a ‘buy’ rating on the stock with a target price of ₹1,650, indicating a potential upside of around 15%. The brokerage highlighted strong fundamentals, including healthy cash flow and return on equity, despite near-term challenges.
As analysts remain divided, the HCL Tech share price is expected to stay volatile in the near term, influenced by earnings visibility, deal momentum, and macroeconomic factors affecting IT spending.