HCL Tech’s Margin Decline: What It Means For IT Firms
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Despite strong deal pipelines, Indian IT’s profitability narrative is faltering. HCL Tech’s Q4FY25 margin drop—from 19.5% to 17.9%—has sent a clear signal to the industry: execution scale no longer guarantees margin protection. This note examines how shifting client demands and structural delivery fatigue are reshaping FY26 planning.
At Greyhound Research, we believe this is more than just an earnings story—it’s an inflection point. Vendors are caught between AI investment mandates and delayed revenue realisation. The classic scale-to-profit formula is eroding, and firms must now pick between relevance and resilience. The margin game has changed.
In this episode, Greyhound Research dissects:
00:00 – Introduction – HCL Tech’s Margin Decline: What It Means For IT Firms
00:21 – Greyhound In News – As quoted in The Hindu Business Line
00:51 –Margin Pressures Mount as HCL Tech Drags Down Industry Average in Q4FY25
03:32 – Analyst In Focus – Sanchit Vir Gogia
04:13 – Greyhound Research Copyright Policy
Prefer text? Read the full analysis on our website:
https://greyhoundresearch.com/hcl-techs-margin-decline-what-it-means-for-it-firms
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Join the conversation: How should IT firms balance AI investment with margin preservation? We’d love your take in the comments.
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Copyright Notice
This video is brought to you by Greyhound Studios, a Greyhound Research Initiative. Please note that Greyhound Research holds complete editorial control of the contents of this video, and the association has had no influence on the content quality and production process. All content shared herein is the copyright of Greyhound Research, and you may share this Greyhound TV video using the available options. Please don’t download this video (complete or parts) and distribute it over the web and through emails. Email us at [email protected] if you need clarifications.
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