Shares of HCL Technologies surged over 7% to ₹1,587 on April 23, following the release of its January–March quarter (Q4FY25) results, which largely aligned with market expectations. Despite a mixed response from brokerages, investor sentiment was lifted by the company’s slightly better-than-anticipated revenue guidance for FY26.
In Q4FY25, HCL Technologies reported a 6% year-on-year (YoY) increase in revenue from operations, reaching ₹30,246 crore, compared to ₹28,499 crore in the same quarter last year. The IT major’s net profit rose 8% YoY to ₹4,307 crore. For the full fiscal year FY25, revenue grew by 6.5%, while net profit climbed 10.8%. The EBIT margin for the year stood at 18.3%, in line with the company’s guidance of 18–19%.
While most brokerages acknowledged the company’s stable quarterly performance, their outlooks differed. Citi maintained a “neutral” rating with a target price of ₹1,510 per share. The firm recognized that HCL Tech delivered a solid performance during a seasonally weak quarter but also revised its earnings per share (EPS) forecasts for FY26 and FY27 down by 2% each. This adjustment reflects concerns about a cautious management outlook and flat projected growth, with a 0% compound annual growth rate (CAGR) implied across FY26.
Citi highlighted that the company is navigating an uncertain macroeconomic environment and is actively exploring new opportunities to sustain growth.
In contrast, Nuvama remained bullish, reiterating a “buy” recommendation with a target price of ₹1,700. The brokerage cited HCL Tech’s FY26 revenue guidance as a key driver of their optimism, noting that it exceeded expectations and signaled potential upside.
Morgan Stanley offered a more neutral stance with an “equal-weight” rating and a target price of ₹1,600. The brokerage echoed broader market sentiment, acknowledging the company’s stable fundamentals while pointing out that a soft performance in new deal total contract values (TCVs) during Q4 could weigh on future growth momentum.
For FY26, HCL Tech now expects revenue to grow between 2% and 5% in constant currency (cc) terms—a slight downgrade at the lower end from its earlier forecast. The revised guidance trims the bottom of the range by 250 basis points compared to FY25.
Despite this tempered outlook, the stock’s strong reaction reflects investor confidence in HCL Tech’s ability to navigate challenges and capitalize on long-term opportunities in the IT services sector.