HCLTech profit rises 20.34% YoY, but stock falls 4.46%
Costs grew slower than revenue, while a lower YoY tax rate supported profit; the initial stock decline was unusually large against its results history.
Filed 13 Jul 2026, 17:41 IST · after market close · HCL Technologies Ltd (HCLTECH)
Key takeaways
- Consolidated net profit rose +20.34% YoY as revenue growth outpaced expenses and operating margin widened 1.36 percentage points.
- The stock fell -4.46% in the first session after results, far exceeding HCLTech's 0.77% median absolute move after its previous eight results.
- Operating margin recovered 0.69 percentage points QoQ to 19.32%, but remained below Q3FY26's 20.83%.
Price around the results
Revenue growth widened HCLTech's operating margin
Consolidated revenue grew +13.94% YoY and +1.76% QoQ, while operating profit rose +22.59% and +5.56%, respectively. Expenses grew +12.04% YoY and +0.89% QoQ, slower than revenue in both comparisons. That cost discipline lifted operating margin by 1.36 percentage points YoY and 0.69 percentage points QoQ.
Lower tax and interest costs supported profit growth
Net profit increased +20.34% YoY and +3.03% QoQ. The YoY tax rate fell 1.66 percentage points, while interest expense declined -59.81% YoY and -65.00% QoQ, supporting profit before tax. Other income contributed 5.91% of pre-tax profit, so it was a modest contributor rather than the main source of earnings.
Margin recovered from Q4FY26 but stayed below Q3FY26
Operating margin improved from 18.63% in Q4FY26 to 19.32% in Q1FY27, reversing part of the decline from 20.83% in Q3FY26. This was a recovery rather than a new quarterly peak. Among 12 Information Technology peers that had reported, HCLTech's margin was 3.58 percentage points above the 15.74% median.
The initial stock reaction was unusually negative
The results were filed after market close, and the stock fell -4.46% on the following session, with trading volume at 2.02 times the reference level. HCLTech's previous eight result reactions were positive five times and negative three times, with a median absolute move of 0.77%, making this decline unusually large. A corporate-action overlap is also flagged, so the move is not a clean standalone read on the results.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹34,579 cr | ₹33,981 cr | +1.76% | +13.94% |
| Other income | ₹361 cr | ₹322 cr | +12.11% | -20.83% |
| Expenses | ₹27,898 cr | ₹27,652 cr | +0.89% | +12.04% |
| Operating profit | ₹6,681 cr | ₹6,329 cr | +5.56% | +22.59% |
| Operating margin (%) | 19.32% | 18.63% | — | — |
| Interest | ₹84 cr | ₹240 cr | -65.00% | -59.81% |
| Depreciation | ₹1,039 cr | ₹1,092 cr | -4.85% | -4.94% |
| Profit before tax | ₹6,108 cr | ₹5,702 cr | +7.12% | +17.71% |
| Tax | ₹1,482 cr | ₹1,212 cr | +22.28% | +10.19% |
| Net profit | ₹4,626 cr | ₹4,490 cr | +3.03% | +20.34% |
| EPS (₹) | ₹17.09 | ₹16.59 | +3.01% | +20.52% |
Operating margin of 19.32% compares with a Information Technology sector median of 15.74% across 12 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.46% | -3.81% |
| Next session | -4.36% | — |
| 5 sessions | +1.50% | +1.59% |
Volume on the results session was 2.02× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 19.32% after the Q4FY26-to-Q1FY27 recovery.
- Whether expenses continue to grow slower than revenue, versus +12.04% and +13.94% YoY in Q1FY27.
- Whether the tax rate moves from 24.26% after its +3.00-percentage-point QoQ increase.