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HCL Tech Q1 Results LIVE: Stock ends 1.5% lower ahead of earnings; revenue, PAT growth to be muted; dividend eyed

Published on 14/07/2025 12:45 PM

HCL Tech Q1 Results LIVE: HCL Technologies will report its June quarter earnings today, July 14. The company is set to post a muted set of numbers during the quarter under review, impacted by the slowdown in business in the US and Europe in light of US tariff announcements and global trade uncertainty. 

HCL Tech's board will consider an interim dividend along with the Q1 results, the company had announced. According to Trendlyne data, in the past 12 months, HCL Technologies Ltd. has declared an equity dividend amounting to ₹60 per share.

Ahead of the earnings announcement, HCL Tech share price was trading with mild cuts. It was among the top losers in the Sensex pack of stocks. HCL Tech share price hit a low of ₹1609.15 on the BSE, down almost 2%.

HCL Tech Q1 LIVE Updates: Emkay Global expects net sales to rise 8.2% YoY but just 0.3% QoQ to ₹30349 crore. Its PAT could grow 1.6% YoY and 0.4% QoQ to ₹4323.8 crore, as per the brokerage's estimates.

"We build in 1.4% QoQ USD revenue growth, factoring in a 200bps cross-currency tailwind. The seasonality of productivity benefits pass-through is expected to weigh on sequential growth in services revenue for Q1. We expect EBIT margin to remain flattish sequentially," it said.

HCL Tech Q1 LIVE Updates: HCL Tech share price closed the day 1.5% lower at ₹1613.50 apiece on the NSE today. The company is slated to post its Q1 results 2025 later today. The analysts expect a muted performance in the June 2025 quarter.

HCL Tech Q1 LIVE Updates: HCL Technologies on Tuesday posted an 8.1 per cent increase in consolidated net profit at ₹4,307 crore for March quarter 2024-25, mainly on account of large deals with a total contract value of about ₹25,500 crore. The company had logged a profit of ₹3,986 crore for the same period a year ago, it said in a regulatory filing.

Revenue from operations increased 6.1 per cent to ₹30,246 crore from ₹28,499 crore in the March quarter 2023-24. The company bagged deals worth USD 3 billion (around ₹25,500 crore).

HCL Tech Q1 LIVE Updates: In the March 2025 quarter, HCL Tech announced a revenue growth target of 2-5% for FY26 on a year-on-year basis in constant currency terms, and its services revenue growth too is expected to be in the same range, which is higher than its major rivals.

HCL Tech Q1 LIVE Updates: MOSL believes there is an opportunity to consider more "risk-on" stocks now, given the improving deal outlook and strong vertical exposures. Its top picks in the large-cap space remain HCL Tech and Tech Mahindra.

HCLT benefits from its all-weather business mix, which should support growth in the current environment, the brokerage said.

HCL Tech Q1 LIVE Updates: HCL Tech could post an 8% rise in its Q1 revenue to ₹30,325 crore while its PAT could rise just 0.5% YoY to ₹4,278 crore, according to Axis Securities. It, however, expects the revenue to remain flattish, i.e., +0.3% QoQ on account of weak service business. EBIT margins to fall by 44 bps QoQ to 17.5% in Q1.

HCL Tech Q1 LIVE Updates: 5 key things to track in HCL Tech Q1 results:

1. Reciprocal tariffs imposed by the US on the directly impacted segments of manufacturing and retail

2. The nature of deals in the pipeline and likely closure timeframe

3. The state of discretionary spending

4. Pace of enterprise GenAI adoption, new opportunities consequent to AI adoption, and likely deflationary impact

5. The environment required to hit the aspirational margin band of 19–20%

Source: Kotak Institutional Equities

HCL Tech Q1 LIVE Updates: HCL Technologies Ltd. has declared 91 dividends since May 15, 2003. In the past 12 months, HCL Technologies Ltd. has declared an equity dividend amounting to ₹60.00 per share. At the current share price of ₹1607.6000, HCL Technologies Ltd.'s dividend yield is 3.73%, shows Trendlyne data.

HCL Tech Q1 LIVE Updates: HCL Tech is likely to post a 7% YoY rise in Q1 revenue in rupee terms to ₹28057 crore while its PAT could remain flat at ₹4135 crore. On a QoQ basis, revenue could decline 0.6% and net profit 3.6%, according to HSBC's estimates.

"Expect seasonally lower revenues for the products business and marginal growth for the IT & ERD services business. On a Q-o-Q basis, we expect the positive impact of currency (CC) to more than offset the seasonal decline in the business. USD revenue growth is expected to be 0.5% Q-o-Q and 4.5% Y-o-Y," HSBC said.

Operating margins are expected to fall by approximately 80 basis points due to the impact of lower utilisation, a lower share of revenues from the high-margin software business, and some adverse currency impact.

Key focus area: Update on FY26 revenue growth guidance; we expect the company to maintain guidance of 2-5% in USD terms. Outlook on deal ramp-ups, discretionary spends, and ER&D business will be critical.

HCL Tech Q1 LIVE Updates: How to trade HCL Tech share price ahead of Q1 results. Axis Sec recommends this strategy:

June Series Performance: The stock gained +3.6%, supported by strong rollover at 89%, compared to the 3-month average of 83.7% — signaling notable short covering activity.

Current Series Trends: The stock has corrected by -4.8%, accompanied by an 18.7% increase in Open Interest (OI), indicating that fresh short positions are being added.

Options Market Sentiment

30-day Implied Volatility (IV): 25.1% (12-month average: 24.5%) — currently in the 65th percentile, suggesting options are moderately expensive.

IV Range (12 months): 17.9% to 46%

IV-Historical Volatility (HV) Spread: +11.8% (average: -1.1%) — at the 99th percentile, reflecting the market’s expectation of a sharp price move soon.

Bloomberg Implied Move (1-day): 0.8%

Bearish Bias: 5% Out-Of-The-Money (OTM) calls are falling more sharply than puts, hinting at bearish sentiment among option traders.

Gamma Zone: Heavy option exposure between ₹1700 and ₹1720 may lead to increased volatility if the stock price approaches this range.

Key Event: Earnings Announcement Today

With earnings due for release, there is an inherent risk of an IV crush if results meet expectations, potentially leading to lower options premiums.

Suggested Strategy: Bull Call Spread on HCLTECH

To navigate the earnings event with limited risk and potential upside, consider the following Bull Call Spread strategy:

Buy: 1 Lot of HCLTECH 1640 Call @ ₹27 - ₹33

Sell: 1 Lot of HCLTECH 1700 Call @ ₹13 - ₹18

Trade Metrics:

Break-Even Price: ₹1655

Maximum Risk: ₹5,075

Maximum Reward: ₹15,925

Source: Axis Securities

HCL Tech Q1 LIVE Updates: HCL Tech share price dipped nearly 2% to a low of ₹1607.05 on the BSE in intraday trade on Monday. HCL Tech stock has lost 15.85% so far in 2025 while it is up 3% for the year.

HCL Tech Q1 LIVE Updates: A meeting of the Board of Directors of the company is scheduled to be held on Monday, July 14, 2025, to consider the un- audited Financial Results of the Company for the quarter ending June 30, 2025 and payment of 2nd Interim dividend for the financial year 2025-26.

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