Infosys, TechM: NIFTY IT slumps 1,200 points as HCLTech's Q4 & FY27 guidance dent sentiment; key details for investors

The management commentary and the FY27 revenue guidance dented investor sentiment.

The NIFTY IT index tumbled as much as 1,228.35 points, or 3.87%, to hit the low of 30,500.75 against the previous close of 31,729.10.

The biggest drag on the index was HCLTech (down 10%). Next on the losers' list were Infosys Limited (down nearly 4%), Persistent Systems (down over 4%), Tech Mahindra (down over 5%), and Tata Consultancy Services (down nearly 2%).

Why are IT stocks bleeding?

IT stocks are under selling pressure as the Street has been disappointed by HCL Technologies’s Q4 earnings, management commentary, and cautious revenue guidance for FY27. Market participants were expecting a stronger performance and a more optimistic outlook from the IT major.

While Wipro also reported a weak set of numbers, hopes were largely pinned on HCLTech, especially after a relatively steady performance by IT bellwether Tata Consultancy Services. The disappointment has weighed on overall sentiment in the IT sector.

Q4 earnings by IT firms so far

Wipro, last week, reported a consolidated net profit of ₹3,501.8 crore for March quarter FY26, down 1.89% from ₹3,569.6 crore a year ago.

The dip in profit comes against the backdrop of a challenging macroeconomic environment, which Wipro CEO and MD Srini Pallia described during the earnings call as the "new normal" marked by geopolitical and policy disruptions, though he noted that overall IT spending has shown resilience.

The company's flagship IT services segment recorded a revenue of $2,651 million in Q4 FY26, marking a sequential uptick of 0.6 per cent and a year-on-year rise of 2.1 per cent.

For the quarter ending June 30, 2026, Wipro expects revenue from its IT services business to be in the range of $2,597-2,651 million. This translates to a sequential guidance of (-) 2.0% to 0% in constant currency (CC) terms.

Addressing the muted guidance for the upcoming quarter, Pallia attributed the softness to a specific client issue in the Americas and delayed ramp-ups on a deal. He also noted that Q1 has traditionally been a weaker quarter for Wipro due to seasonality.

HCLTech Q4 snapshot

HCLTech reported a 4.20% year-on-year (YoY) rise in consolidated net profit to ₹4,488 crore for the January-March quarter of FY26 (Q3 FY26), even as the management flagged a highly volatile demand environment shadowed by tariffs and softened discretionary spends, giving an FY27 growth guidance of 1-4%.

The Noida-headquartered firm had reported a consolidated net profit of ₹4,307 crore in the same period of FY25.

The firm's revenue from operations rose 12.34% to ₹33,981 crore in Q4 FY26, up from ₹30,246 crore seen in Q4 FY25.

The IT major projected its FY27 company revenue growth to be in the range of 1% to 4% in constant currency (CC). The company attributed the broad band of guidance to market volatility, reduced discretionary spend, and two client-specific situations where it expects some ramp-downs.

On a quarter-on-quarter basis, HCLTech's profit and revenue rose by 10.10% and 0.32%, respectively.

For the full fiscal year of 2025-26, HCLTech recorded a net profit of ₹16,642 crore, reflecting a 4.30% decline from ₹17,390 crore in FY25.

FY26 revenue stood 11.18% higher at ₹130,144 crore.

Mastek Q4 earnings

Mastek posted a 2% quarter-on-quarter (QoQ) decline in its consolidated net profit to ₹106.2 crore for Q4 FY26, compared to ₹108.4 crore in the previous quarter of the same fiscal year.

However, annually, its profit surged 30.9% year-on-year (YoY) from ₹81.1 crore in the March quarter of the 2024-25 fiscal year (Q4 FY25), according to its investor presentation.

Its revenue from operations advanced 3.6% QoQ to ₹938 crore during the quarter under review, as against ₹905.7 crore in the December quarter of FY26. On a YoY basis, its revenue grew by 3.6% from ₹905.4 crore.

At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation), also known as operating profit, stood at ₹150.7 crore for the March quarter of FY26. While it fell marginally QoQ from ₹152 crore in Q3 FY26, it grew 8.6% YoY from ₹138.8 crore in Q4 of FY25.

Its EBITDA margin contracted by 71 basis points (bps) QoQ to 16.1% from 16.8% in the quarter-ago period. Annually, however, it expanded by 75 bps from 15.3% in the same period last year.

“Our outcome-focused drive on AI has helped deliver a 12% improvement in revenue per employee and helped sustain EBITDA margins at 16.1%,” Nahata noted.

While the macroeconomic environment remains uncertain, Matek’s “deep client relationships, strong deal pipeline, and sustained operational rigour" position it well to navigate the near-term challenges and capitalise on emerging growth opportunities, said Deepak Kedia, Chief Financial Officer, Mastek.