July 14 (Reuters) – India’s HCL Technologies (HCLT.NS), fell as much as 3.2% on Tuesday after analysts said the IT services firm’s decision to maintain its annual revenue growth forecast signalled continued uncertainty in client spending and a slower recovery.
Analysts have lowered their expectations for India’s $315 billion IT industry as global clients cut non-essential tech spending and fears mount that advanced AI tools could disrupt the business models of software companies.
India’s third-largest software services exporter beat profit and revenue expectations for the first quarter on Monday, helped by strength in its financial services and a weak rupee.
However, brokerages said HCLTech’s decision to retain its fiscal 2027 outlook suggested that demand conditions remain fragile despite improving bookings.
The company maintained its fiscal 2027 constant-currency revenue growth guidance of 1%-4% and EBIT margin guidance of 17.5%-18.5%.
J.P. Morgan retained its “underweight” rating, saying the unchanged guidance reflected continued weakness in discretionary technology spending, pressure in telecom and manufacturing accounts.
Jefferies maintained its “underperform” rating, saying the unchanged growth outlook was “the key disappointment” and saying it pointed to a softer road ahead despite strong bookings and better-than-expected results.
The stock trimmed some losses to trade 2.3% lower and was the top drag on the IT index (.NIFTYIT),
Reporting by Kashish Tandon and Mridula Kumar in Bengaluru; Editing by Janane Venkatraman.
