India’s 3rd Largest IT Firm HCLTech Shares Slide on Revenue Miss, Profit Tops Estimates

HCL Technologies Ltd (NS:HCLT), India’s third-largest IT services provider, saw its shares fall on Tuesday following third-quarter results that missed revenue forecasts. The company reported a 5.1% rise in consolidated revenue to ₹298.9 billion ($3.45 billion), slightly below analysts' expectations of ₹300.68 billion.

Despite the revenue miss, HCLTech posted a 5.5% increase in net profit to ₹45.91 billion, marginally beating market estimates. The company also announced new deals worth $2.1 billion during the quarter, signaling continued business momentum.

Following the earnings report, several brokerages downgraded HCLTech's stock and revised price targets, reflecting concerns about the revenue shortfall. The stock's decline contributed to a 0.7% drop in the Nifty IT index.

The Indian IT sector has faced slower growth amid inflation and global economic uncertainties. However, North America, which accounts for over 40% of sector revenue, remains a key growth market, supported by U.S. pro-business policies.

Despite weakness in IT stocks, broader Indian markets showed resilience. The Nifty 50 gained 0.5%, and the BSE Sensex 30 rose 0.4%, buoyed by gains in other sectors.

HCLTech’s performance highlights challenges in the Indian IT industry while showcasing its potential for future growth through robust deal wins. The company’s outlook remains tied to global economic trends and North American market opportunities.