HCL Tech Q1FY27 preview: ₹34,598 cr revenue eyed

Earnings day: HCL Tech and other names in focus

A busy earnings calendar puts HCL Technologies in the spotlight today, alongside ICICI Prudential Asset Management Company, Nuvoco Vistas Corporation, Bajaj Consumer Care, Khaitan Chemicals & Fertilizers, and Plastiblends India, which are also scheduled to announce their Q1FY27 results. After Tata Consultancy Services reported a strong June quarter, attention shifts to HCL Technologies as investors look for cues on demand, guidance, and margins.

HCL Tech is set to announce its results for the quarter ended June 2026, with brokerages largely bracing for muted near-term growth but relatively steady profitability. The company’s board will also consider the second interim dividend for FY27, while the record date is yet to be announced.

What HCL Technologies is expected to report in Q1FY27

Brokerage previews point to a quarter where rupee-reported revenue growth is helped by currency depreciation, even as constant currency (CC) growth remains under pressure. Analysts also expect a mixed set of numbers, with steady year-on-year growth but sequential weakness in revenue in constant currency terms.

Based on estimates cited in the provided information, HCL Tech’s June quarter revenue is expected at ₹34,598 crore, a 1.8% increase from ₹33,981 crore in the previous quarter. Net profit is expected to rise 1.9% sequentially to ₹4,561 crore from ₹4,476 crore.

On operating performance, EBIT is expected to increase 3.9% to ₹5,821 crore from ₹5,602 crore, with EBIT margin improving 34 bps to 16.8% from 16.5%.

Constant currency and dollar revenue: the softer undercurrent

The same previews also highlight a weaker performance in constant currency terms. Kotak Institutional Equities estimates constant currency revenue could decline 0.6%. Dollar revenue is expected to fall 0.9% QoQ to $1,682 million.

This split between rupee growth and constant currency softness is a key theme for the quarter. Brokerages attribute the rupee growth to currency depreciation, while also flagging pressure in specific verticals and parts of the software business that can weigh on constant currency growth.

Morgan Stanley, for instance, expects Q1 revenue to decline 1.8% QoQ in US dollar terms, while still growing 2% YoY. It also expects net profit to fall 2% sequentially but rise 6% year-on-year.

Guidance is the main trigger: reiteration vs an upper-end trim

Guidance commentary is expected to dominate the management discussion. Several analysts expect HCL Technologies to reiterate its FY27 guidance, while others see the possibility of a reduction to the upper end.

As per the provided text, analysts expect HCL Tech to reiterate FY27E guidance for:

• Consolidated CC dollar sales growth: 1% to 4%
• US Services sales growth: 1.5% to 4.5%
• Consolidated EBIT margin: 17.5% to 18.5%

Motilal Oswal is cited as expecting HCL Tech to trim the upper end of its FY27 revenue growth guidance by 100 basis points. Some brokerages, according to the same information, expect a cut in the upper end to 1% to 3% for the overall business and 1.5% to 3.5% for the services business, while retaining the EBIT margin guidance band.

Demand commentary: manufacturing, telecom, and software watchpoints

Brokerages have flagged pressure in the manufacturing and telecom verticals, and weakness in the software business, as factors that could pull topline growth by more than 1% to 1.5% in constant currency terms.

Motilal Oswal’s preview, as cited, expects consolidated revenue to decline 1.4% QoQ in constant currency for Q1FY27. It also expects services (IT plus ER&D) revenue to decline around 1.5% QoQ in CC.

These expectations increase the importance of management commentary on client spending, deal ramp-ups, and whether the demand environment has improved, stabilised, or stayed uncertain.

Deal wins: TCV expectations and what investors will look for

Deal momentum is another key datapoint for the quarter. Kotak Equities expects healthy total contract value (TCV) of deal wins in the $1.2 billion to $1.5 billion range.

Investors will typically look at how deal wins translate into revenue conversion timelines and whether those wins are concentrated in cost takeout work or growth programs. While the provided information does not detail the mix, it does indicate that TCV will be closely tracked.

Margin expectations: resilient, but not uniform across brokerages

On margins, brokerages expect resilience supported by currency movements and cost efficiencies. But the outlook in previews is not uniform.

Mirae Asset expects margin to improve by around 10 bps QoQ, supported by “Project Ascent-led efficiencies” and favourable currency, as cited. ICICI Securities, however, is cited as expecting a 25 bps QoQ decline due to the absence of operating leverage on revenue growth, employee restructuring costs, and AI investments.

Motilal Oswal expects a ~40 bps QoQ improvement in margins to around 16.9% for the quarter.

Dividend agenda: second interim dividend for FY27

Apart from earnings, HCL Technologies’ board will consider the second interim dividend for FY27. The record date is yet to be announced, according to the provided information.

Dividend decisions often become an additional focus on results day, especially when growth is mixed, because they offer another lens on capital allocation and confidence in cash generation.

FY26 context: where HCL Tech is starting FY27 from

The provided information also includes a snapshot of HCL Tech’s earlier reported numbers, which frame expectations going into FY27. For Q4FY26, the company reported revenue of ₹33,981 crore, with constant currency revenue down 3.3% QoQ and up 2.4% YoY, and USD revenue at $1,682 million.

For FY26, HCL Tech reported INR revenue of ₹130,144 crore, up 11.2%, and USD revenue of $14,664 million, up 6.0%. It also reported constant currency revenue growth of 3.9% for the year.

The company’s FY27 guidance, as stated in the provided text, is 1% to 4% YoY revenue growth in constant currency, with services revenue growth guided at 1.5% to 4.5% YoY, and an EBIT margin band of 17.5% to 18.5%.

Key numbers to track (estimates and guidance)

Market impact: what could move the narrative

The market reaction, if any, is likely to hinge less on the headline rupee numbers and more on the constant currency trend and management’s FY27 positioning. The key questions implied by brokerage previews are whether manufacturing and telecom pressures persist, whether the software business stabilises, and how quickly deal wins convert.

Guidance is the immediate signal investors will use to judge visibility. With some brokerages expecting a trim to the upper end of the band and others expecting a reiteration, the specific wording around demand uncertainty, pipeline, and discretionary spending will be critical.

Dividend details and the eventual record date can also influence near-term focus, but the dominant driver remains whether HCL Tech can hold margins within guidance while navigating weak constant currency growth.

Conclusion

HCL Technologies’ Q1FY27 results are set up as a test of resilience, with estimates pointing to modest sequential improvement in rupee terms, softer constant currency trends, and a close watch on FY27 guidance. Alongside the earnings numbers, the board’s consideration of a second interim dividend adds another headline item for investors to track.

The next clear milestone will be the company’s detailed commentary alongside the Q1 print, including guidance decisions and any further clarity on the record date for the interim dividend.