HCLTech Updates Revenue Guidance Amidst Market Changes

BENGALURU: In a recent update, HCLTech has adjusted its revenue growth guidance for FY26 to 3-5 per cent in constant currency, up from the previous forecast of 2-5 per cent. This revision reflects the company's optimism about improving demand in the market.

Quarterly Performance Highlights

The June quarter saw a 3.7 per cent year-on-year growth in constant currency revenue, with a slight sequential increase of 0.8 per cent. Despite a minor dip in services revenue by 0.1 per cent, there was a notable year-on-year growth of 4.5 per cent.

Challenges and Strategic Investments

CEO C Vijayakumar addressed challenges such as skill-location mismatches and a one-time impact from a client bankruptcy. Emphasizing the company's commitment to innovation, Vijayakumar highlighted ongoing investments in GenAI as a key area of focus.

Revised Margin Outlook

Margin guidance has been adjusted to 17-18 per cent, down from 18-19 per cent, attributed to unexpected impacts in Q1, continuous AI investments, and restructuring efforts. The June quarter margins were reported at 16.3 per cent, a decrease from previous quarters.