HCL Technologies saw its stock price stumble by more than 3% during morning trade, even after the IT giant posted a healthy net profit of Rs 4,624 crore for the first quarter of FY27. While this represents a significant 20% jump compared to the previous year, market sentiment turned sour due to the company's cautious forward-looking statements.
Total revenue also climbed by 13% to reach Rs 34,579 crore. However, analysts believe the momentum fell short of the aggressive growth expectations priced into the stock. The primary point of contention remains the company's decision to maintain its existing constant currency guidance for the remainder of the fiscal year.
Key performance targets maintained by the firm include:
- Revenue growth projected between 1% and 4%
- Services revenue growth set at 1.5% to 4.5%
- EBIT margins expected to hold steady at 17.5% to 18.5%
Brokerages including Nomura and Motilal Oswal are currently reassessing their positions, balancing the company's strong operational cash flows against the stagnant growth outlook. For now, the market appears to be signaling a 'wait and see' approach as investors digest whether the company’s conservative strategy is prudent or a sign of slowing demand.
