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HCL Technologies just dropped its Q1FY26 results, and the stock took a hit. On Tuesday (July 15, 2025), shares slipped over 3.4 per cent in early morning trade as investors digested a 10 per cent drop in net profit. This wasn’t the bounce the Street was hoping for.
Even though revenues came in stronger than expected, it was the weak bottom line that stole the spotlight. Margins were squeezed. Execution was slower than expected. And that’s got investors wondering if the near-term story is losing steam.
Q1 FY26 results snapshot
| Metric | Q1 FY26 | Q1 FY25 | YoY change |
|---|---|---|---|
| Revenue | Rs 30,349 crore | Rs 28,057 crore | 8.1 per cent |
| Net profit (PAT) | Rs 3,843 crore | Rs 4,257 crore | - 10 per cent |
| EBIT margin | 16.3 per cent | 17.1 per cent | - 80 bps |
| EPS (basic) | Rs 62.64 | Not published | - |
| Order Book / TCV | $1,812 million | $1,960 million | - 7.5 per cent |
The market’s reaction
After the results, HCL Tech’s stock slipped to around Rs 1,558. It has now fallen about 23 per cent from its 52-week high of Rs 2,011. Investors aren’t punishing the company for poor demand. It’s execution and profitability that are under the lens.
Still, this isn't panic selling. HCL’s fundamentals remain intact, and the revenue guidance bump gives bulls something to hold onto.
About the company
HCL Technologies is one of India’s top IT services exporters. It helps global businesses build digital systems, manage cloud infrastructure and automate everything from supply chains to cybersecurity. With operations in over 60 countries and a headcount crossing two lakh it’s a heavyweight in digital transformation.
Below is a table summarising the company’s fundamentals.
| Metric | Value |
|---|---|
| Market cap | Rs 4.4 lakh crore |
| P/E ratio | 25.9 |
| P/B ratio | 6 |
| Book value | Rs 256.7 |
| EPS | Rs 62.6 |
| ROE | 23.7 per cent |
| ROCE | 31.1 per cent |
| Dividend yield | 3.7 per cent |
Value Research Online ratings
- Quality score: 10/10
- Growth score: 7/10
- Valuation score: 5/10
- Momentum score: 4/10
- Overall rating: 4/5
Should investors worry?
Not yet. If you're in it for the long term, HCL Tech still checks a lot of boxes—strong ROE, global clients, high-quality score. But short-term traders looking for momentum might stay cautious until margin stability returns.
Execution will be the key monitorable in the coming quarters. If it improves, the stock might find its footing again.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and has been reviewed by human experts for accuracy and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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