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Revenue to Stay Flat, FY26 Guidance Likely to Narrow to 3–5%

GenevaTimes by GenevaTimes
July 13, 2025
in Business
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Revenue to Stay Flat, FY26 Guidance Likely to Narrow to 3–5%
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HCLTech Ltd. is set to report its June quarter earnings on Monday and most brokerages expect a soft set of numbers due to seasonal weakness and subdued client spending.

While revenue and margins are likely to decline sequentially, analysts anticipate the company will narrow the lower end of its revenue growth guidance for the financial year ending March 2026.

Several brokerages including Goldman Sachs and PhillipCapital expect HCLTech to revise its revenue growth outlook for FY26 to a 3–5% range from the earlier 2–5%, while others like Motilal Oswal and HSBC see the company retaining its existing guidance.

EBIT margin is also expected to come under pressure due to weak revenue growth, lower utilisation, and adverse currency impact. Most analysts expect the FY26 EBIT margin guidance to remain unchanged at 18–19%.

Consolidated revenue for the quarter is seen largely flat at Rs 30,298 crore versus Rs 30,299 crore in the previous quarter, according to analysts’ consensus estimates tracked by Bloomberg. EBIT is expected to fall 3% sequentially to Rs 5,277 crore, according to Bloomberg estimates.

EBIT margin is projected to contract to 17.06% from 17.91% in the March quarter.

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