HCL Technologies indicated on Tuesday that it was yet to see any impact from the sweeping reciprocal tariffs announced by US President Donald Trump earlier this month. The company reported an 8.05% YoY rise in profit to Rs 4,307 crore during the final quarter of FY25. The IT major also set its FY26 revenue growth guidance between 2% and 5%.
“We haven’t seen any specific impact so far. We see this playing out much faster in consumer and manufacturing segments. But if tariffs play foul, I don’t think any vertical would be left behind…all industries would be impacted,” said CEO and MD C Vijayakumar.
He also noted that discretionary spending would continue to remain subdued as “geo-political factors like tariffs and deglobalisation” were expected to impact IT services in the coming month.
Trump had announced sweeping tariffs against nearly all imports from more than 180 countries earlier this month. The US President has since announced a 90 day pause on higher levies (though a baseline 10% tariff remains in place) for negotiations. Subsequent announcements saw the Trump administration allow ‘temporary’ exemptions for several electronic items and components.
Indian IT giants earned more than half of their $193 billion revenue from the US in FY24. And while it is not directly facing the brunt of tariffs, the resulting economic sluggishness in the US could affect revenue growth. Tariffs can increase operational costs and trigger a global slowdown — leading to tighter client budgets and a dip in IT outsourcing spend.