FinancialMediaGuide notes that HCLTech, one of the leading players in the IT services market, recently revised its annual revenue expectations, lowering its forecast from 3-5% to 4-4.5%. This decision is driven by several factors that reflect current challenges both for the company and the sector as a whole. What are the reasons behind this revision, and what does it mean for the company’s future and the Indian IT sector as a whole?
In the recently concluded quarter, ending December 31, HCLTech posted impressive revenue growth of 13.3% compared to the same period last year, totaling ₹338.72 billion (approximately $3.8 billion). These figures significantly exceeded analysts’ expectations, which had forecasted revenue of ₹330.46 billion. However, an increase in deal volume, amounting to $3 billion, as well as rising costs, led the company to revise its 2026 growth forecast. It now expects revenue growth in the range of 4-4.5% instead of the previously planned 3-5%.
Equally important is the 11.2% decrease in quarterly profit, which amounted to ₹40.76 billion. The main reason for this was a one-time loss of ₹9.56 billion due to the introduction of new labor codes in India. This also impacted the company’s financial results and forecasts for the near future. At FinancialMediaGuide, we emphasize that such legislative changes require companies to carefully adapt to the new conditions.
We also point out that this forecast revision reflects a cautious approach from HCLTech in response to external economic risks, including the decline in global demand for IT services due to economic uncertainty and changes in the macroeconomic landscape. However, despite the downward revision of the revenue forecast, HCLTech continues to sign large deals, confirming strong demand for the company’s services. We view this as evidence that, despite the challenging external environment, the company maintains its competitiveness in the market.
For the entire Indian IT sector, which reached $283 billion in 2025, the situation remains complex. External economic risks, such as slower growth in the US and Europe and geopolitical instability, are affecting demand for IT services. At FinancialMediaGuide, we believe that for Indian IT companies to thrive in such conditions, they must diversify their markets and seek new growth areas, such as artificial intelligence and cloud technologies.
Nonetheless, despite current challenges, HCLTech continues to demonstrate confidence in its future. We predict that the company’s investments in new high-tech areas, such as artificial intelligence and cloud solutions, will continue to bear fruit and support long-term growth. It is also worth noting that the deal volume of $3 billion speaks to the company’s strong position in the market and its ability to attract major clients.
Despite the revised forecast, HCLTech remains a leader in the IT services market and will continue to develop its key areas. At Financial Media Guide, we see this not only as a confirmation of the company’s strength but also as a signal to the entire Indian IT sector about the importance of strategic flexibility and adaptation to new challenges. In an uncertain global market, Indian companies need to invest in new technologies and manage their costs effectively to ensure sustainable growth and maintain competitiveness.
