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.

At least 11 brokerages cut ratings on the stock after HCLTech reported a 5.1% rise in consolidated revenue to 298.9 billion rupees ($3.45 billion), missing analysts' expectations of 300.68 billion rupees due to underperformance in its software business.

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.

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.

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.

India's No. 4 IT services provider Wipro beat third-quarter estimates for revenue and profit on Friday, and its CEO hoped for a better year after facing macroeconomic challenges in 2024."Our clients are cautiously optimistic and we see discretionary spending slowly coming back,

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.

Shares of IT giant HCL Tech tumbled by nearly 9% following disappointing Q3 earnings that failed to meet investor expectations. Despite a rise in revenue and profit, the stock became the biggest laggard among BSE Sensex and NSE Nifty.

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.