HCL Technologies Navigates Restructuring Amid Profit Dip

HCL Technologies faced a challenging Q1 FY26, reporting a 9.7% decline in consolidated net profit caused by increased expenses and a one-time client bankruptcy impact. Despite these hurdles, the tech giant has revised its lower revenue growth outlook upwards, reflecting optimism for the remaining fiscal year.

The CEO, C Vijayakumar, announced a significant restructuring plan to align with market demands in the AI era. This strategy involves optimizing facilities and adjusting the workforce outside India, aiming for improved agility. The restructuring's impact is expected to be reflected in upcoming quarters.

Although operating margins fell below expectations due to a demand-supply mismatch and other factors, HCL Technologies remains committed to its AI-driven initiatives. The firm is also set to increase its intake of specialized freshers, focusing on building an elite engineering cadre. The company's shares closed 1.04% lower following these announcements.

(With inputs from agencies.)