HCL Tech Share Price Today Falls Over 3% In the Early Trade A Day After Q1 Results – Should You Buy, Sell Or Hold?

 HCL Technologies shares slipped over 3% on Tuesday morning, reacting to the company’s weaker-than-expected first-quarter earnings for FY26.

On the BSE, the stock opened at Rs 1,590.10 and fell to a low of Rs 1,568.80 before recovering slightly to Rs 1,570.05 at 9:48 am, down 49.90 pts or 3.08%.

HCL Tech Share Price Today
A similar trend was seen on the NSE, where the stock hit a low of Rs 1,568.00 and traded at Rs 1,568.20, down 51.60 pts or 3.19%.

What's behind the fall?

The fall came after HCL Tech reported a 10% year-on-year decline in consolidated net profit at Rs 3,843 crore in Q1FY26, compared to Rs 4,257 crore in the same quarter last year. Although revenue from operations grew 8% YoY to Rs 30,349 crore—slightly above Street estimates of Rs 30,340 crore—the profit drop and margin pressures spooked investors.

Sequentially, revenue was up only 0.3% from Rs 30,246 crore in Q4FY25. The company has declared an interim dividend of Rs 12 per share, with a record date of July 18 and a payment date of July 28.

Guidance and Margin Pressures
HCL Tech revised its FY26 constant currency revenue growth guidance to 3–5% YoY for both the company and its Services business. EBIT margin guidance was cut by 100 basis points to 17–18%, reflecting the impact of weaker Q1 performance, higher sales and marketing (S&M) investments, lower utilisation, and restructuring costs.

HCL Tech Share Price Target
In a note, EMkay Global Financial Services said HCL Tech’s Q1 operating performance was "weaker than estimate, largely due to a miss on margin, though revenue came in-line."
“Revenue dipped 0.8% QoQ in constant currency due to Services seasonality and weak growth in Software. Services and Software revenue fell 0.1% and 7.1% QoQ, respectively,” the brokerage stated.

The EBIT margin (EBITM) fell by 170 basis points quarter-on-quarter to 16.3%, missing EMkay's expectations. The miss was attributed to lower employee utilization, higher investments in Gen AI and S&M, a less favourable business mix, and a one-off impact.

Deal momentum also slowed, with total contract value (TCV) of new deal wins at $1.8 billion, down sequentially. However, the company signed a vendor consolidation deal in the BFSI sector, which is expected to contribute to revenues over the next two years. Management also expects to close a few large deals in Q2 and remains optimistic about its deal pipeline.
“We cut FY26–28E EPS by 3%–7%, factoring in the Q1 show and margin guidance cut; retain ‘REDUCE’ on HCLT while cutting our TP ~5% to ₹1,660, at 23x Jun-27E EPS,” EMkay added.

Looking Ahead
While revenue growth has remained steady, the company’s profitability and operational efficiency remain key concerns for analysts and investors. The management’s confidence in a margin rebound by FY27 offers some reassurance, but near-term pressures could weigh on the stock.

As of now, HCL Tech share price today remains under pressure, reflecting investor caution amid softer margins and slower-than-expected deal ramp-ups.
 

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