HCL Technologies outperforms TCS in revenue growth despite profitability challenges

ET Intelligence Group: HCL Technologies (HCL Tech) reported better revenue performance than Tata Consultancy Services (TCS) for the June quarter but its profitability suffered due to a delay in project ramp-up. TCS, on the other hand, expanded operating margin through cost control.

However, an upward revision in the revenue guidance for FY26 implies that HCL expects a more stable business environment in the coming quarters. The decline in the new order bookings during the June quarter seems to be short term given procedural delays while closing two deals.