Tue Jul 15 04:40:00 UTC 2025: Okay, here’s a summary and a news article based on the provided text:

**Summary:**

HCL Technologies’ stock price plunged nearly 3% after announcing Q1 2026 results that revealed a 10% year-over-year (YoY) decline in net profit. While revenue increased by 8.2%, operating margins compressed due to lower utilization rates and investments in generative AI and go-to-market strategies. The company has revised its FY26 margin guidance downwards but slightly raised its revenue growth guidance. Analysts suggest the results reflect macroeconomic challenges and industry headwinds. Despite the profit dip and reduced deal wins, HCL Tech management expresses optimism for the coming quarter and emphasizes long-term growth, particularly in AI-driven services. Analysts advise a “buy-on-dips” strategy, citing strong support around ₹1,500 and resistance at ₹1,700. Several analysts have also revised their target price for HCL Tech shares.

**News Article:**

**HCL Tech Shares Plunge After Disappointing Q1 Results**

**Mumbai, India – July 16, 2025** – Shares of HCL Technologies (HCL Tech) experienced a sharp decline today following the release of its Q1 2026 earnings report. The stock opened with a gap down at ₹1,590 on the National Stock Exchange (NSE) and touched an intraday low of ₹1,568.30, representing a nearly 3% drop from the previous day’s close of ₹1,619.80.

The negative market reaction was triggered by the company’s Q1 results, which revealed a 10% year-over-year (YoY) decrease in net profit, despite an 8.2% increase in revenue to ₹30,349 crore. The decline in profitability was attributed to lower utilization rates and strategic investments in generative AI and go-to-market initiatives.

Seema Srivastava, Senior Research Analyst at SMC Global Securities, noted, “HCL Tech’s Q1 FY26 results reflect ongoing macroeconomic challenges and industry headwinds. Operating margins compressed to 16.3%, prompting the company to revise its FY26 margin guidance downwards to 17–18%.”

While net new deal wins also declined, HCL Tech management remains optimistic about future growth. CEO C Vijayakumar highlighted stable demand and a healthy pipeline, with AI propositions gaining traction. The company has slightly revised its FY26 revenue growth guidance upwards to 3-5% in constant currency.

Despite the short-term headwinds, analysts are suggesting a “buy-on-dips” strategy for investors. Sumeet Bagadia, Executive Director at Choice Broking, stated, “HCL Tech shares have strong support placed at ₹1,500, whereas it is facing a hurdle at ₹1,700…one can initiate a buy-on-dips strategy and keep adding until the stock is above ₹1,500 for the short-term target of ₹1,700.”

Citi has also adjusted its target price for HCL Tech shares, lowering it from ₹1,690 to ₹1,650. Investors are advised to consult with financial experts before making any investment decisions.

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