HClTech exceeding TCS, Infy, but Tempering FY26 Prospects on Macro Challenges | Company Business News

HCL Technologies Ltd led India’s top four software services firms for a second consecutive year, but indicated a cautious fiscal year 2026 (FY26) outlook, which predicts a tempered 2-5% revenue amid macroeconomic challenges. Hcltech, India’s third largest information technology services company, has an income of $ 13.84 billion for the year ended March, by 4.3% year-on-year. Tata Consultancy Services Ltd (TCS), the country’s largest information technology (IT) firm, and the second largest Infosys Ltd reported an annual turnover growth of 3.78% and 3.85% respectively. In contrast, the fourth largest Wipro turnover dropped its revenue of 2.7% year -on -year. Just like Peers TCs, Infosys and Wipro, the Noida-based IT service provider is a stormy start to FY26 due to macroeconomic problems, even if it has resulted in a 5% growth on the best in constant currency, which is not taken into account in currency fluctuations. Hcltech led for a tempered start of the new fiscal, as it set out a revenue growth of between 2% and 5%, which is also the slowest projection at the bottom of March 2020. “We believe that the discretionary spending in this environment will still be subdued. Geopolytic factors such as tariff and de-globalization are expected to affect IT services,” said C. Vijayakumar, CEO of HCLTech, as part of his preparations, “C. Vijayakumar, CEO of his services, said C. Hcltec CEO Vijayakumar as part of his services, ‘said C. Vijayakumar, CEO of Hcltec, part of his particular,’ said C. Vijayakumar, CEO of HClte, part of his services, ‘he said.’ Remarks at the press conference after the company’s earnings Tuesday. “In the coming months, it will be an important topic to observe and monitor continued development,” Vijayakumar added. Many of this concern stems from macro -economic uncertainty that is spurred by US President Donald Trump’s tariff flops. With this, each of the country’s top four IT services led for a slow start from FY26. The performance and comments of the company reflect that of its larger three peers who say that customer has delayed decision-making and interrupted projects due to the haze macroeconomic environment. Although TCS does not lead, Infosys in constant currency predicted an apartment up to 3% revenue growth for FY26, but the worst guidance since April 2009, when it predicted a 6.7-3.1% revenue drop for FY10. Smaller peer group Wipro also expects to grow its revenue at the slowest rate of FY26 in the April-June of FY26. The company has already set out a quarterly turnover decline between 3.5% and 1.5% in constant currency terms. Wipro guides the next term, while Infosys guides for the full year. TCS does not give growth -generation to quarterly or annually. Much of Hcltech’s turnover growth comes from telecommunications and media companies, which account for 92% of the company’s incremental revenue. Together, telecommunications, media, publishing and entertainment companies reach 12.6% of the total revenue of the business. A bright place in his report card was on his net profit front. HClTech reported a net revenue of $ 2.04 billion for the full year, an increase of 7.65% on an annual basis. With this, the company fared better and the expectations of the analysts on both revenue and net profit fronts. As for the operating margins, the profitability of the business expanded by 10 basis points to 18.3%. This was in line with Infosys and Wipro, both of which expanded their margins with 40 basis points and 100 basis points respectively. A base point is one hundredth of a percentage point. Much of this increase in profitability was, due to the company’s software products poor, the company’s most margin-acclaimed business unit. The profitability of the software business increased 200.6% in FY25 to 26.6%. HClTech is one of the few large IT -autosorcers that has a substantial dependence on the sale and licensing of software products. The company’s revenue from its software business rose 3.3% to $ 1.43 billion, but the greater impact of this arm is still on the operating margins. The company’s turnover in the fourth quarter (January-March 2025) fell consecutively to $ 3.5 billion, while the net profit fell 8.8% to $ 496 million. Much of the decline in revenue was due to lesser businesses of manufacturers, the second largest customer. Still, at least one analyst said it was in line with the expectation. “HCLT’s Q4FY25 results are broadly in line with street expectations with a 0.8% QOQ CC turnaround, supported by a lower seasonal decline in the products that also support the inline EBIT (earnings before interest and tax),” says Manik Taneja, executive director of Axis Capital. The company’s employee’s score fell by 4,061 to 223,420 people, making Hcltech the only company in the top four to reduce its counter. Peers TCs, Infosys and Wipro added half of the FY25. Hcltech’s shrinking bunch, together with uncertain question, indicate cautious rental prospects, while the accelerated acceptance of generative artificial intelligence fundamental questions raises the future of the IT labor force in general. For the time being, its management refrained from calling out a target and declaring that the rent in FY26 would be more than FY25 and also that it would be executed quarterly. First published: 22 Apr 2025, 22:31 IST