<ul data-eligibleForWebStory="false"><li>HCL Technologies Ltd. faces margin squeeze with one-third of its AI-focussed team underutilized, impacting Q1 margins by 80 basis points.</li><li>The underutilization is attributed to factors like a large ramp-up in March for conversational AI, automotive sector ramp-down, and challenges in redeploying employees.</li><li>Despite the margin challenges, HCL plans to hire more personnel in FY26, especially in specialized roles, to support its AI-led transformation strategy.</li><li>Restructuring efforts are expected to improve margins to the 18–19% range in the future quarters, with an anticipated 100 basis points margin impact in Q2.</li></ul>

HCLTech Margin Takes A Hit As One-Third Of AI-Focussed Team Remains Underutilised

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