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Revenue
₹33,981 Cr
verified against source
Revenue YoY
2.4%
reported change
EBITDA
Pending
latest reported figure
Source
nse announcements
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
HCL Tech reported Q4 FY26 revenue of $3.68B, up 2.4% YoY but down 3.3% QoQ, missing expectations due to delayed procurement decisions and discretionary spending cuts by two large US telecom clients. Services revenue grew 4.2% YoY while software declined 14% YoY. Full-year revenue grew 3.9% in constant currency, with services up 4.8%. EBITDA margin (ex-restructuring) was 17.7%, down 20bps YoY. Management guided FY27 revenue growth of 1-4% (services 1.5-4.5%) and EBIT margin of 17.5-18.5%, reflecting headwinds from two client-specific reductions (~50bps) and continued soft discretionary spend. AI momentum remains strong with $155M quarterly advanced AI revenue (+6.1% QoQ) and a $100M+ AI factory deal. Key risk: further escalation of tariff volatility or client-specific issues could pressure growth.
Colored figures show movement against the previous available record.
Guidance to track
- Consolidated revenue growth guidance for FY27 in constant currency; services growth 1.5-4.5%.
- Operating margin guidance for FY27, excluding impact of acquisitions.
- Specific client reductions in manufacturing and retail will impact growth by about 50 basis points.
- Management expects advanced AI services (AI factory, custom silicon) to grow at 25-30% annually.
Risks flagged
- Two large US telecom clients cut discretionary spend in Q4; impact expected to continue through calendar 2026.
- Analyst questioned if deflation from AI could expand; management acknowledged risk but maintained 2-3% estimate for HCL.
- Q4 software revenue missed due to delayed US government decisions; timing of closures unpredictable.
- Management noted softness in Europe due to geopolitical escalations, which could worsen.
Key quotes
- We are seeing some of this impact already hurting the growth outlook in Europe. While there are no broad macro challenges in North America, two client specific challenges in Americas would have close to 50 basis points growth headwind in FY27.
- 40% of the industry runs the risk of being disrupted by AI and can shrink 3 to 5% faster for a few years... For our portfolio it would translate to 2 to 3%.
- We have lost some deals which are voluntary losses... we walked away from some deals which will not make sense and that would have easily contributed at least a billion dollar more to this number.
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