INSUBCONTINENT EXCLUSIVE:
As HCL Technologies gears up to announce its Q1FY26 earnings on Monday, July 14, analyst projections suggest starkly divergent estimates for
the tech major's net profit in the quarter under review
Revenue growth is likely to remain in the high single digits during this seasonally soft quarter.The profit after tax (PAT) could remain
flattish on a sequential basis amid cautious client spending, with revenue also expected to stay flat quarter-on-quarter.Estimates from five
PAT: Divergent forecasts with muted QoQ trendProjections for PAT vary significantly across brokerages
HDFC Securities expects the highest adjusted PAT at Rs 4,351 crore, up 13.7% YoY and 1% QoQ while Nuvama pegs PAT at Rs 4,312 crore (up 1.3%
YoY, flat QoQ).Prabhudas Lilladher sees a slightly lower PAT of Rs 4,100 crore, down 1.7% YoY but up 1.7% QoQ.Elara Capital estimates Rs
4,154 crore, down both 2.4% YoY and 3.6% QoQ.Nomura has not given an explicit PAT figure but highlights margin pressures.2
quarter-on-quarter performance due to seasonality in the products business.Nomura forecasts revenue at Rs 28,057 crore (+7.7% YoY, -0.1%
QoQ).HDFC Securities expects Rs 30,347 crore (+8.2% YoY, +0.3% QoQ).Nuvama sees Rs 30,219 crore (+7.7% YoY, -0.1% QoQ).Prabhudas Lilladher
puts it at Rs 30,400 crore, the highest estimate (+8.2% YoY, +0.4% QoQ),Elara Capital projects revenue at Rs 30,246.5 crore (+7.8% YoY, flat
EBITDA/EBIT: Margin pressure persists sequentiallyThe Earnings Before Interest and Taxes (EBIT) is expected to grow modestly YoY but decline
sequentially due to seasonal headwinds and cost factors.EBIT projections range between Rs 5,163 crore and Rs 5,356 crore,EBIT margins are
better YoY revenue traction.4
DealsAnalysts anticipate steady deal wins, albeit with delayed decision cycles
optimisation-led demand.5
commentary on BFSI, client discretionary spends, and cost takeout programs will be key to understanding near-term trajectory amid global
macro uncertainty.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own
These do not represent the views of the Economic Times)
