HCL Technologies, India’s third-largest IT services company based in Noida, Uttar Pradesh, is set to announce its Q4 results for FY25. Analysts expect muted revenue growth and a dip in net profit, weighed down by seasonal weakness and wage hikes.
HCL Technologies, one of India’s leading IT services companies based in Noida, Uttar Pradesh, is expected to announce a subdued performance for its Q4 results of FY25, which are due on April 22, 2025. Analysts predict a decline in net profit by 6% on a quarter-on-quarter (QoQ) basis, along with modest revenue growth, attributed to various internal and external pressures.
The company’s share price rose by over 4% on April 21, ahead of the earnings announcement. It is anticipated that HCL Technologies will report a 1.6% sequential increase in revenue to ₹30,356 crore in Q4FY25, up from ₹29,890 crore in Q3FY25. However, in USD terms, revenue is expected to show a minor decline of 0.8%, expected to fall to $3,505 million from $3,533 million.
Seasonal weakness, wage hikes, and a reduction in the high-margin Products & Platforms (P&P) segment are contributing to the subdued performance. Analysts are projecting a net profit of ₹4,288 crore, reflecting a 6.6% decline compared to the previous quarter.
The company’s EBIT is also expected to face significant pressure, with a decrease of 7.7% QoQ to ₹5,370 crore. The EBIT margin is projected to contract by 170 basis points, resulting in a margin of 17.8%. Kotak Institutional Equities has forecasted an EBIT of ₹5,516 crore with a 136 basis point contraction in the EBIT margin.
Looking ahead, the company’s guidance for FY26 is expected to be in the range of 3%–5% revenue growth. The EBIT margin guidance is expected to remain stable, targeting a range of 18%–19%.
Investors will be paying close attention to the management’s commentary regarding deal trends, client spending, and the outlook for the coming quarters, particularly in key verticals such as BFSI, Hi-Tech, and ER&D. As the global macroeconomic environment continues to affect market conditions, the strength of discretionary spending and new deal wins will be crucial for HCL Technologies’ future performance.
