HCL Technologies Q4 Results Preview: How Will HCL Tech Perform In Q4FY26? FY27 Guidance Key; Dividend Ahead?

HCL Technologies, the third-largest tech player in India, is going to announce its Q4 results for FY26 on April 21. Ahead of the earnings, HCL's share price traded broadly positive with nearly 1% upside. In the fourth quarter, HCL is expected to report a decline in constant currency revenue and EBIT margins. While the management commentary and key FY27 guidance remain key focus areas. It will also be watched if HCL announces any dividend rewards just like its peer TCS. Notably, HCL is among the top dividend-paying stocks in the IT sector.

HCL Technologies Share Price:

Ahead of Q4FY26, HCL stock price traded at Rs 1441.25 apiece, up by 0.90% on BSE with market cap of Rs 3,91,106.98 crore. The stock is near its intraday high of Rs 1441.40 apiece.

HCL Technologies Q4 Results Preview:

"We forecast c/c revenue decline of 1.7% and yoy growth of 4.4%. Growth will be led by IT business (+1.1%), offset by seasonal decline in products revenues," said analysts at Kotak Institutional Equities in their note.

Further, they expect EBIT margin at 17.7%, and underlying EBIT margin of 18.5%. EBIT will margin has impact of 80 bps from restructuring charge. Tailwinds of rupee depreciation will likely be offset by headwinds from wage revision (50 bps).

However, TCV of deal wins is expected to be healthy to around $2.5 billion range.

Meanwhile, analysts at Centrum predict CC revenue growth at -0.8% QoQ, led by weak seasonality of Q4 and lower number of billing days. EBIT margin is expected to decline decline by 52 bps QoQ, due to lower contribution from higher margin Software segment and restructuring related costs.

HCL Technologies FY27 Guidance:

All analysts expect management commentary on FY27 guidance and current demand environment to be the key focus area.

Analysts at Kotak said, "Focus will be on FY2027E revenue guidance. Helping HCLT will be a mega-deal ramp-up and higher exposure to lower AI-hit IMS revenues. We expect the company to guide for 3-5% revenue growth excluding acquisition of HPE's telco solutions group. Services business revenue growth guidance is likely to be in 4-6% range, implying 0.6-1.4% CQGR. We expect HCLT to raise margin guidance band to 17.5-18.5% for FY2027E, up from 17-18% earlier. FY2026 margin guidance band was impacted by 60 bps due to restructuring charge. In addition, recent rupee depreciation will also aid margins."

HCL Technologies Q4FY26: Key Focus Area

According to Kotak, investors should focus on (1) the pace of new revenue pools possible with GenAI that can offset revenue deflation, (2) how the company has baked in recent macro deterioration into the guidance, (3) profitability in cost take-out and vendor consolidation deals, (4) GenAI risks to the products business, and (5) the kind of demand environment required for growth to accelerate to high single digits.

HCL Technologies Dividend:

As of now, HCL Tech has not made any announcement for a dividend proposal, which would be taken into consideration during the board of directors meeting on April 21. However, the probability of a dividend announcement on Tuesday is still on the cards.

Since May 2003, HCL Tech has rewarded investors with up to 94 dividends, as per Trendlyne data. This makes HCL Tech among high dividend-paying tech stocks. In the last 12 months, HCL has paid up to Rs 54 in dividends per share. Its current dividend yield is at 3.75%.

HCL Technologies Share Price Recommendation:

Kotak has recommended 'REDUCE' on HCL Tech share price with a target of Rs 1,425. On the other hand, Centrum has given BUY with a target price of Rs 1,865.

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