- Shares of HCLTech dropped nearly 8.5% after Q4FY26 earnings announcement
- HCLTech reported 10% sequential net profit growth but flat revenue in Q4FY26
- Company cited weak discretionary spending and geopolitical uncertainty in results
Shares of HCLTech Ltd. are facing immense pressure in trade on Wednesday in the wake of the company's poor earnings for the fourth quarter of the financial year ending March 2026. The stock is trading at Rs 1,323, accounting for a sharp drawdown of almost 8.5% compared to Tuesday's closing price of Rs 1,441.
This comes on the back of HCLTech's underwhelming numbers and guidance in their Q4FY26 announcement on Tuesday, after market hours. Although the IT major reported a 10% sequential increase in net profit, revenue was flat amid timid discretionary spends and geopolitical uncertainty.
This was coupled with a guidance cut for FY27, further souring the mood in Dalal Street, with brokerages having already reined in on the IT major, issuing significant target price cuts. Indeed, the likes of Morgan Stanley, Jefferies, Citi, Investec and Kotak Securities, among others, have all cut target price on the counter.
In light of the heavy selling activity, the relative strength index of HCLTech has hit 7, which suggests the stock has entered the deeply oversold territory.
ALSO READ: HCLTech Q4 Result Review: Brokerages Issue Sharp Target Price Cuts After Poor Show
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