Hcl Infosystems Limited (hcl-insys) Q1 FY27 Results: Revenue Dips, Losses Widen

HCL Infosystems Limited (HCL-INSYS) announced its financial results for the quarter ending 30th June 2026, reporting a revenue of Rs. 417.55 Lakhs. This figure marks a decline from Rs. 528.20 Lakhs in the previous quarter, primarily due to one-time revenue recognized in the last quarter from a Defense project change request of Rs. 69.86 Lakhs and Rs. 40.79 Lakhs from another customer.

Revenue and Loss Analysis

The Loss Before Tax (negative PBT) for the current quarter stood at Rs. 1668.08 Lakhs, higher than the Rs. 1316.72 Lakhs reported in the previous quarter. The loss was lower in the previous quarter due to receipt of interest on tax refunds and writebacks of certain vendor balances/provisions. Mr. Gaurav Bhalla, Manager of HCL Infosystems Ltd, commented on the results, stating, “During this quarter, the management of the Company continued to focus on actions to expedite the collection of tax refunds and recovery of receivables that are long overdue from customers through arbitration proceedings.”

Company Initiatives

As informed in earlier news releases, the Company has initiated arbitration proceedings against several customers to recover the dues owed, incurring significant effort and cost. The Company continues to incur costs in relation to project execution, compliance with regulatory obligations, maintenance of internal financial controls, management of ongoing litigations, and provisioning for unutilized GST Input Tax Credit, which is reflected in the financial results. The Company incurred legal, professional, and consultancy expenses of Rs. 601.70 Lakhs during the quarter.

Positive Developments

During the quarter, the Company received a favorable order from the Supreme Court dismissing the appeal filed by the Commissioner of Income Tax against a compensation received by the Company during the financial year 1997-98 which was treated as a capital receipt by the company. Consequently, the income tax demand of Rs. 1,490 lakhs has been quashed. Additionally, the Company received tax refunds amounting to Rs. 2,660 Lakhs primarily from Value Added Tax (VAT) Authorities towards the refund of pre-deposit in connection with the matter relating to the taxability of batteries sold in composite packs along with mobile phones in the State of Rajasthan for the tax periods 2009-10 and 2011-12.

HCL Infosystems Limited is an IT System Integration and Solutions Company. For more information, please visit us at www.hclinfosystems.in. Media Contact Information: cosec@hclinfosystems.com.

Source: NSE Corporate Announcement

Fundamental & Technical Analysis of HCL Infosystems Limited

HCL Infosystems Limited belongs to the Technology › Electronics & Computer Distribution sector. Here’s a quick read on where the business and the stock stand today.

HCL moves sideways over three months, with neither buyers nor sellers taking control. Industry-leading margins of 152.3% reflect exceptional pricing power and operational efficiency. 5 loss quarters over five years is a serious red flag — earnings quality is poor and recovery is not guaranteed. The stock holds at 35% of its 52-week range with RSI at 46. In other words, neither side has a clear edge right now. Revenue grows at -11.7% yet the PEG reaches 99.00 — expensive for that growth. Furthermore, the stock drops 5.2% in three months. Neither value nor momentum supports this setup. It needs an earnings beat or a price reset first. Check Fundamentals of HCL Infosystems Limited.