HCL Tech share price falls 3% despite strong Q1 results 2026: Should you buy, sell or hold the IT stock?

HCL Tech Q1 results: HCL Technologies share price declined over 3% to its day's low of ₹1,183.00 per share on BSE on Tuesday, July 14, even after the IT major reported a strong performance for the quarter ended June 2026 (Q1FY27).

Its consolidated net profit rose 20.34% year-on-year (YoY) to ₹4,626 crore, compared with ₹3,844 crore in the corresponding quarter last year. On a sequential basis, the IT major's net profit increased 3% from ₹4,490 crore reported in the March quarter (Q4FY26).

Revenue from operations grew 14% YoY and 1.8% quarter-on-quarter (QoQ) to ₹34,579 crore during the June quarter, up from ₹30,349 crore in Q1FY26 and ₹33,981 crore in Q4FY26. In constant currency (CC) terms, revenue increased 2.6% YoY and 0.5% QoQ.

Despite the strong quarterly performance, HCL Tech retained its FY27 guidance. The company continues to expect constant currency revenue growth of 1-4% YoY for FY27, while the services business is projected to grow 1.5-4.5% in constant currency. The company also expects its EBIT margin to remain in the 17.5-18.5% range during FY27.

The company's board also declared an interim dividend of ₹12 per equity share. HCL Tech has fixed Friday, July 17, as the record date to determine eligible shareholders, while the dividend will be paid on Monday, July 27, according to its earnings filing.

Operational performance also improved during the quarter. EBIT margin, including the impact of 62 basis points (bps) of restructuring costs, increased 39 bps QoQ and 56 bps YoY to 16.9%.

A key highlight of the quarter was HCL Tech's highest-ever Q1 new deal bookings, which stood at $2,407 million. The company also reported robust growth in its Advanced AI business, with revenue rising 10.6% QoQ and 62.1% YoY in constant currency to $171 million.

Commenting on the performance, C Vijayakumar, Chief Executive Officer and Managing Director of HCL Technologies, said:

"We recorded our highest-ever Q1 net-new bookings of $2.4 billion, and our advanced AI business grew 10.6% QoQ and 62.1% YoY in constant currency terms. These demonstrate that enterprises are choosing us to lead their AI-led transformation."

"Combined with the operational efficiencies visible in margin expansion, this momentum gives us the confidence we're positioned to keep outpacing the market over the medium term."

Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aimin...