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.

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.

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 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.

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.