HCLTech, India's no. 3 software services provider, plunged 8% on Tuesday after reporting a smaller-than-expected quarterly revenue and as a slew of brokerages cut their ratings on the shares. The company on Monday reported a 5.

The company also narrowed its revenue growth forecast for the current fiscal year, reflecting the challenges facing the Indian tech industry amidst global economic uncertainty.

HCL Technologies Q3 results are estimated to be strong with a revenue growth expected to be 4.5% on a sequential basis driven by seasonal tailwinds from renewals in its products business.

Shares of HCLTech plunged nearly 10% on Tuesday, set for their worst session since September 2015, after India's No. 3 software services provider missed quarterly revenue estimates and raised only the lower end of its full-year sales outlook.

HCLTech’s software revenue growth however declined 2.1% YoY in constant currency terms as it failed to close some deal renewals as well as new deals. Consolidated revenue in the three months ended December grew 5.

HCLTech has revised its revenue growth guidance for FY25, raising the lower end by 100 basis points in constant currency (CC) terms. The company now expects revenue growth of 4.5-5% YoY in CC, up from the previous estimate of 3.5-5%. Additionally, services revenue growth is projected to be in the same 4.5-5% YoY range.

HCLTech , India's third-largest software company, posted a smaller-than-expected December-quarter revenue on Monday, with clients holding back discretionary tech spending amid macroeconomic uncertainties.

Infosys, India's second-largest IT services provider, reported better-than-expected third-quarter revenue on Thursday, aided by a pickup in demand in its banking and financial services vertical, and raised its full-year revenue forecast.

In profitability and return metrics, HCLTech saw EBIT growing 3.7% to ₹5,821 crore. The company declared a dividend of ₹18/- per share, including a special dividend of ₹6/- per share to celebrate 25 years of HCLTech’s public listing. This represents the 88th consecutive quarter of dividend pay-out.

IT company HCLTech on Monday reported a 5.54 per cent uptick in consolidated net profit to Rs 4,591 crore for the December quarter as the CEO expressed optimism for improvement in the demand environment and discretionary spending and raised the revenue growth guidance.