HCL Tech Shares Plummet 3% After 20.3% Surge In Profit After Tax

HCL Tech Share Price: The shares of HCL Technologies fell as much as 3.16% even after beating Q1FY27 result estimates with a  20.3% year-on-year (YoY) profit after tax (PAT) growth to Rs 4,624 crore.

The IT services major also reported a 13.9% revenue growth to Rs 34,579 crore, earnings before interest and tax (EBIT) margin at 16.86%, dollar revenue up 2.96%, whilst having announced an interim dividend of Rs 12/share.

The company continues to expect constant currency revenue growth of 1%-4% and an EBIT margin of 17.5%-18.5% for FY27.

Meanwhile, its dollar revenue came in at $3.65 billion, while its constant currency revenue declined 0.5% sequentially.

On the other hand, its revenue from operations rose 14% year-on-year (YoY) to Rs 34,579 crore from Rs 30,349 crore a year earlier. In dollar terms, revenue declined 0.9% sequentially to $3.65 billion, as compared with Street expectations of a 1.3% decline, while constant currency revenue fell 0.5% quarter-on-quarter, against estimates of a 1% decline

The Bengaluru-headquartered company's services revenue increased 14.9% year-on-year and 1.7% sequentially to Rs 31,748 crore during the June quarter. The IT and Business Services business grew 4.2% year-on-year and remained flat sequentially, while Engineering and R&D Services revenue rose 0.3% from a year ago but declined 3.7% quarter-on-quarter (QoQ).

The company also reported its highest-ever first-quarter net new bookings of $2.4 billion, excluding a mega deal signed in early July. Its bookings were well diversified across verticals, geographies and business segments, including an AI-led transformation mandate from a Europe-headquartered Fortune Global 50 company.

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CEO and MD at HCLTech, C VijayaKumar, said, " We recorded our highest ever Q1 net-new bookings of $2.4Bn and our Advanced Al business grew 10.6% QoQ and 62.1% YoY in constant currency terms. These demonstrate that enterprises are choosing us to lead their Al-led transformation."

"Combined with the operational efficiencies visible in margin expansion, this momentum gives us the confidence we're positioned to keep outpacing the market over the medium term," he said.