HCLTech has raised the lower end of its FY27 revenue growth guidance to 2.5% from 1%, signalling improved confidence in its growth outlook. The IT services major now expects revenue growth of 2.5-4% in constant currency (CC) terms for the financial year, while retaining its EBIT margin guidance.
The company has set its FY27 services revenue growth guidance at 3-4% in constant currency terms. The revised outlook follows its June quarter results, when revenue declined sequentially in constant currency terms.
HCLTech reported constant currency revenue growth of 2.3% quarter-on-quarter in the latest quarter. Its advanced artificial intelligence (AI) revenue rose 28.4% sequentially to $219 million, highlighting the growing contribution of AI-related business to its performance.
HCLTech's earnings before interest and tax (EBIT) increased 10.9% quarter-on-quarter to Rs 6,465 crore from Rs 5,831 crore in the previous quarter. Its EBIT margin expanded to 18.1% from 16.7%, reflecting an improvement in operating profitability.
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The company has retained its EBIT margin outlook for FY27, although the latest quarterly improvement provides a stronger starting point for its full-year performance.
In the April-June quarter, HCLTech had maintained its FY27 revenue growth guidance at 1-4% in constant currency terms. The company had reported a 0.5% sequential decline in constant currency revenue to $3.65 billion.
HCLTech's standalone net profit rose 3% year-on-year to Rs 4,624 crore in Q1, while revenue from operations increased 1.8% to Rs 34,579 crore. EBIT stood at Rs 5,831 crore, with an EBIT margin of 16.9%, compared with 16.5% in the corresponding comparison cited in its Q1 results.
The latest guidance revision raises the minimum growth expectation by 1.5 percentage points, narrowing the downside implied by the earlier outlook. Investors will watch whether stronger AI demand and improved margins translate into sustained revenue growth through the remaining quarters of FY27.
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