HCL Technologies Ltd. saw its share price fall by more than 4% after announcing its first-quarter results for FY26.
The company reported a 11% decline in first-quarter profit, which fell short of analysts' expectations. In response to the disappointing results, the company has revised its full-year revenue and margin forecasts for FY26.
The IT services giant now anticipates constant currency revenue growth of 3% to 5% year-on-year for the fiscal year ending March 2026, a slight adjustment from its previous projection of 2% to 5%. Additionally, HCLTech expects its services revenue to grow within the same range of 3% to 5%.
Moreover, the company has lowered its EBIT margin guidance to 17%–18% for the full year, down from the earlier forecast of 18%–19%. This revision reflects the challenges faced by HCLTech in maintaining profitability amidst changing market conditions.
The profit for the April-June quarter dropped by 11% on a sequential basis, missing analysts' estimates and contributing to the negative market sentiment. The revised guidance and lower-than-expected profit underscore the hurdles HCLTech must overcome to achieve its financial targets for FY26.
The IT giant reported an attrition rate of 12.8% for the April-June quarter, consistent with the same period last year and slightly lower than the 13% recorded in the previous quarter.
During this quarter, HCLTech added 269 employees, bringing the total headcount to 2.23 lakh. The company also welcomed 1,984 freshers, a significant increase from the 1,078 freshers added in the same quarter last year and 1,805 in the previous quarter.
The attrition rate, which measures the rate at which employees leave the company, remained stable. A lower attrition rate is generally seen as a positive indicator of employee retention and company health.
Additionally, the percentage of women employees at HCLTech stood at 28.8% for the current quarter, showing a slight increase from 28.7% in the year-ago quarter.
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