Shares of HCLTech dropped about 4% on Tuesday, a day after India’s No. 3 software services provider lowered its annual operating margin forecast, dampening hopes of a rebound in client spending across the sector.
HCLTech was the top loser on the benchmark Nifty 50 index , which was trading flat on the day. It was also the top drag on the Nifty IT index, which was down 0.4%.
At least eight brokerages cut their price targets on the stock after the IT firm reduced its operating margin forecast for fiscal year 2026 to a range of 17% to 18% from a previous projection of 18% to 19%.
Six brokerages also cut their ratings on the shares, data compiled by LSEG showed.
India’s equity benchmarks log weekly losses as IT stocks drag
Tariff-related uncertainty in the United States – the biggest market for India’s $283 billion IT sector – has dashed hopes for a rebound in client confidence and spending. A survey in May showed two in five tech executives had deferred discretionary projects.
HCLTech’s consolidated net profit for the June-quarter fell 9.7% on-year to 38.43 billion rupees ($447 million) even as its revenue beat analysts’ average estimate.
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