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HCL Technologies Forecasts 8% YoY Profit Growth in Q4 Amid Seasonal Headwinds

HCL Tech is set to announce its Q4 FY25 results with a projected 8% YoY growth in net profit, even as revenue faces seasonal softness.

HCL Technologies Q4 Results 2025: 8% YoY Profit Growth Expected Despite Seasonal Revenue Dip

HCL Technologies is among 16 companies announcing their Q4 FY25 earnings today, with analysts projecting an 8% year-on-year (YoY) increase in net profit. However, seasonal softness in its software product segment and macroeconomic challenges are expected to lead to a sequential revenue decline.


Key Expectations from HCL Technologies Q4 FY25

According to consensus estimates from six brokerages:

  • Revenue growth is expected around 5% YoY.
  • Net profit may rise by 8% YoY.
  • A sequential decline in revenue is likely in constant currency (CC) terms.
  • EBIT margin is expected to drop by about 50 basis points QoQ due to reduced software sales contribution and wage hikes.

Investor Focus: Guidance and Deal Momentum

Investors will closely watch for:

  • FY26 guidance, particularly 3–5% revenue growth projection.
  • EBIT margin guidance, expected to remain stable between 18%–19%.
  • Updates on deal win TCV (Total Contract Value), especially amid muted client decision-making cycles.
  • Impact of the Verizon deal anniversary and foreign exchange movements.
  • Performance in BFSI and Hi-Tech verticals, with growth in ER&D expected to partially offset IT services flatness.

Waaree Energies, AU Small Finance Bank, and Havells Also in Focus

Alongside HCL Technologies, Waaree Energies, AU Small Finance Bank (AU SFB), and Havells India are set to announce their results today. Here’s what’s expected:

  • Waaree Energies, a solar energy major, is anticipated to post robust numbers backed by strong domestic demand and a push for renewable capacity expansion.
  • AU Small Finance Bank could report healthy loan book growth and margin improvement, though provisioning trends and asset quality will be closely watched.
  • Havells India may report mixed results due to subdued electrical consumer demand, but continued growth in its Lloyd air conditioner and appliances segment is expected to support overall revenues.

What This Means for You

If you’re an investor in IT services, HCL Technologies’ Q4 performance and forward guidance will be a key indicator of how demand is shaping up amid global economic uncertainty. The muted revenue outlook suggests cautious corporate spending in tech, but the profit growth shows resilience in operations.

For those watching the green energy sector, Waaree Energies’ results will reflect the traction in India’s clean energy transition. Meanwhile, AU SFB’s earnings can provide insights into the strength of the financial sector’s lending engine in tier-2 and tier-3 cities.


How to Take Action

  • Investors in HCL Tech should evaluate the post-result management commentary before making fresh bets.
  • Analysts tracking ESG and renewables may find Waaree’s numbers valuable for forecasting solar sector momentum.
  • Banking sector observers can use AU SFB’s results as a pulse check for small finance banking health amid RBI’s evolving stance.

Final Word on HCL Technologies’ Earnings Outlook

HCL Technologies appears poised for a solid YoY profit performance in Q4 FY25, despite expected revenue softness due to seasonal factors and foreign exchange challenges. The company’s forward guidance and margin management strategy will likely be the biggest takeaways for stakeholders looking ahead to FY26.


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