HCLTech Q4 results today: Check date, time, expectations, dividend

HCLTech Q4 preview 2025: The IT major is expected to post a 5.4 per cent decline in net profit for the fourth quarter sequentially to ₹4,341.8 crore

HCLTech Q4 preview 2025: After a slew of information technology (IT) majors reported muted sequential top and bottom-line growth, HCL Technologies is likely to follow suit, weighed down by seasonal weakness and margin pressures.  

The IT firm will report its earnings for the quarter ended March on April 22, Tuesday.

 

HCL Technologies' revenue is expected to rise slightly by 1.28 per cent quarter-on-quarter (Q-o-Q) to ₹30,273.2 crore, according to analysts tracked by Business Standard. Seasonal weakness in products and macro uncertainties will likely impact the IT bellwether's revenues, analysts said.

 

However, the company is expected to post a 5.4 per cent decline in net profit for the fourth quarter sequentially to ₹4,341.8 crore. On a year-on-year (Y-o-Y) basis, the net profit is expected to grow at an average of 8.9 per cent. Analysts expect that within IT services, growth in banking, financial services and insurance (BFSI) and Hi-Tech will be offset by reduced business from Verizon, increased offshoring, and currency headwinds.

 

 

HCLTech had posted a net profit of ₹4,591 crore in the third quarter (October-December) of FY25. Profits were up 5.5 per cent Y-o-Y and 8.4 per cent sequentially. 

 

 

Here's how analysts of various brokerages expect HCL Technologies to fare in Q4:

 

Kotak Securities: The brokerage expects constant currency (CC) revenue to decline by 0.7 per cent Q-o-Q, primarily due to seasonal weakness in the products business. The services business is forecast to grow by 0.9 per cent, while organic revenue growth is expected to be marginally negative at -0.1 per cent. 

 

Earnings before interest and tax (Ebit) margin is projected at 18.2 per cent—an increase of 60 basis points year-on-year but a decline of 140 basis points quarter-on-quarter. The sequential decline is attributed to lower license revenue from the products segment. The fourth quarter also includes transition costs related to the Verizon deal. The total contract value (TCV) of net new deals is estimated at $2.2 billion, in line with recent quarters.

 

Kotak Securities expects HCL Technologies to guide for 3–5 per cent revenue growth in this fiscal year, including a 100 basis points contribution from the CTG acquisition. 

 

IDBI Capital: The brokerage expects HCL Technologies’ revenue to decline by 1.4 per cent in US dollar terms, primarily due to seasonal weakness in the products business. The brokerage also anticipates a 135 basis points decline in Ebit margin, largely due to transition costs related to the Verizon deal.

 

IDBI Capital will be closely watching several key aspects of the company’s earnings commentary. These include the outlook for the products business, updates on the deal pipeline—particularly large deals and pricing trends—and hiring patterns. It will also track the margin outlook, the performance and drivers of the engineering research and development (ER&D) segment and the impact of artificial intelligence (AI) deals on the broader IT services business. 

 

HSBC: On a quarter-on-quarter basis, HSBC forecasts an organic constant currency revenue decline of 1.7 per cent and an approximate 1 per cent decline in US dollar terms. The brokerage expects seasonally lower revenues from the products business, flat quarter-on-quarter revenue from IT services, and modest growth in the engineering R&D (ER&D) segment.

 

HSBC expects growth in the BFSI and Hi-Tech segments, along with the inorganic contribution from the HPG CTE acquisition, to be offset by the ramp-down and offshoring at Verizon, as well as negative foreign exchange impacts.

 

Operating margins are projected to decline, impacted by wage hikes, a lower software contribution, and increased investments in sales, general, and administrative (SG&A) expenses. However, this may be partially offset by the favourable impact of currency depreciation.