HCLTech lowers margin forecast

BENGALURU: HCLTech raised the lower end of its revenue growth guidance to 3-5 per cent in constant currency for FY26, citing improved demand, up from an earlier forecast of 2-5 per cent. In the June quarter, constant currency revenue grew 3.7 per cent year-on-year and edged up 0.8 per cent sequentially. Services revenue was down 0.1 per cent but rose 4.5 per cent year-on-year. "We faced ramp downs due to skill-location mismatches and a one-time impact from a client bankruptcy. Despite this, we remain focused on accelerating investments in GenAI," said CEO C Vijayakumar.Margin guidance was lowered to 17-18 per cent from 18-19 per cent. Vijayakumar explained the revision is due to Q1's unexpected impact, ongoing AI investments, and a planned restructuring involving personnel and facilities, with associated one-time costs included in the guidance. Margins for the June quarter fell to 16.3 per cent, down from 17.1 per cent a year ago and 17.9 per cent in March.