Mon Jul 14 17:49:50 UTC 2025: Here’s a summary of the provided text and a rewritten version as a news article:

**Summary:**

HCL Tech, an Indian IT firm, reported a 9.7% decline in net profit for the first quarter of FY26, totaling ₹3,843 crore. Revenue saw modest growth, but the company lowered its revenue growth guidance for the year due to lower utilization, higher investments in generative AI and go-to-market initiatives and restructuring measures. The company is actively investing in AI and seeing positive client response, while also focusing on the ethical deployment of the technology.

**News Article:**

**HCL Tech Reports Profit Dip, Revises Guidance Amid AI Investments**

**Bengaluru, July 14, 2025** – HCL Tech, the Shiv Nadar-promoted IT services giant, announced a 9.7% year-on-year decline in net profit for the first quarter of fiscal year 2026. The company’s net profit stood at ₹3,843 crore, compared to ₹4,257 crore in the same period last year.

While revenue increased to ₹30,349 crore, a 0.3% rise quarter-on-quarter and 8.2% year-on-year, HCL Tech has revised its revenue growth guidance downwards to between 3% and 5% in constant currency. The company also reset its EBIT margin in the 17-18% range, from 18-19% earlier.

The company attributes the profit dip and revised guidance to lower utilization rates and significant investments in generative AI and go-to-market initiatives. HCL Tech’s consolidated revenue on a last twelve month basis has exceeded $14 billion.

Despite these challenges, HCL Tech reports strong deal wins totaling $1.8 billion in the quarter, indicating continued client demand.

“Our AI propositions are resonating well with our clients,” stated V. Vijayakumar, CEO & Managing Director of HCLTech. He said he also observed that AI markets globally were witnessing different trends in consumption, with clients becoming more proactive with a mindset that was more towards adoption. He also noted a stable demand environment during the quarter, as the pipeline continues to grow.

HCL Tech is also undertaking a margin restructuring program aimed at achieving EBIT margins in the 18-19% range, which is expected to impact earnings this year. This program will include optimizing facility usage and strategic hiring.

Roshni Nadar Malhotra, Chairperson of HCLTech, emphasized the company’s commitment to the ethical deployment of AI, stating that “AI has become integral to the business growth of global enterprises.” The company will continue to be “intensely focused on the ethical deployment of AI and maximizing its positive social impact”.

The results reflect the shifting landscape of the IT industry as companies like HCL Tech navigate the opportunities and challenges presented by emerging technologies like artificial intelligence.

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