Shares of HCLTech, India’s third-largest IT services company, remained under pressure on Friday, extending recent losses as investors continued to react to weak guidance, cautious sector sentiment and a broader sell-off in technology stocks.
HCLTech shares were trading at Rs 1,206.10, down 5.57% on the Bombay Stock Exchange (BSE) at 12:48 pm.
The fresh decline comes just days after the company’s latest quarterly results .
The biggest concern for investors is HCLTech’s outlook for FY27.
The company guided for 1% to 4% revenue growth for the new financial year, which came in below many market expectations. That suggested demand conditions remain uncertain and client spending may stay cautious for longer than hoped.
In simple terms, investors were looking for stronger signs of recovery from one of India’s top software exporters — and did not get them.
Along with cautious guidance, HCLTech’s quarterly numbers also came in softer than expected on some key metrics.
While the company continues to win deals and remains profitable, analysts said the pace of growth and management commentary pointed to a slower near-term environment.
That has raised concerns that the broader IT sector may continue facing pressure from delayed decision-making, tighter client budgets and weaker discretionary spending.
HCLTech was not alone in falling.
Other frontline IT names such as and Wipro also traded lower as sentiment toward the sector weakened.
Indian IT companies earn a large share of revenue from clients in the US and Europe. Any slowdown in those economies, or delays in technology spending, tends to hit these stocks quickly.
Some investors may see the sharp correction as a chance to accumulate a quality large-cap IT stock at lower valuations.
However, near-term sentiment remains fragile, and markets are likely to demand clearer evidence of growth recovery before turning positive again.
For HCLTech, the next triggers will be fresh deal wins, stronger quarterly execution and any improvement in client spending trends.
Friday’s decline suggests the market is still in “show me” mode. Until growth visibility improves, HCLTech shares may remain volatile despite the company’s long-term strengths.