HCL Technologies Ltd. share price target

HCL Technologies delivered a strong performance in Q4FY25, driven by robust execution in IT services, healthy cash flows, and sustained momentum across key segments. The management remains cautiously optimistic about growth in FY26, acknowledging macroeconomic uncertainties while continuing to win large deals and forge strategic partnerships. The company has built a strong pipeline, particularly in AI, engineering, and digital services, backed by disciplined capital allocation and differentiated capabilities. Given its consistent execution, strategic focus, and strong...

HCLT’s FY26 revenue organic guidance of 1–4% YoY CC appears optimistic at its upper end, implying -0.6% to 0.9% organic CQGR. It is supported by an exit growth rate of 1.6%. Management mentioned that it did not see any project deferral or rampdown due to tariff-related uncertainties in Q4FY25.

Strong deal wins in Q4 of USD 3bn with robust pipeline The operating performance was broadly in line with our estimates. The FY26 revenue outlook (2-5% YoY CC) assumes 100bps of inorganic element (HPE Assets). The organic guidance translates to a weak CQGR of (-0.1% to +0.9%), which assumes the execution delays and further deterioration of demand at the lower band of the guidance. We believe the company is highly exposed to tariff sensitive verticals (Manufacturing, Retail, Healthcare), while the ER&D...

4QFY25 was peer beating. FY26 revenue guide assumes flattish CQGR at lower end; does not square up against the cautious commentary

HCL Technologies (HCLT) reported 4QFY25 revenue of USD3.4b, down 0.8% QoQ and 2.9% YoY in constant currency (CC) vs. our estimate of 0.6% QoQ decline. EBIT margins came in at 18% vs. our estimate of 17.6%.

HCLTech reported revenue of $3,498 million, down 1% q-o-q/ up 2% y-o-y missing our estimates of $3,502 million in constant currency (CC) terms. Revenue in rupee terms stood at Rs. 30,246 crore, up 1.2% q-o-q/6.1% y-o-y.

HCL Tech reported revenue by an increased of 5.1% YoY to Rs 29,890 crores on a consolidated basis. In constant currency (CC) terms the revenue grew by 4.1% YoY and 3.8% QoQ. In dollar terms, revenue of $3,533M, up 2.5% QoQ & up 3.5% YoY. The uptick in the revenue was seen due to increasing spending patterns in the verticals.

4.25% CC YoY organic revenue growth maintained. Sectors beyond BFSI and Hi-Tech called out for pickup in discretionary spend

HCL Tech Q3FY25 profits exceeded our expectations by 2.8%. In Q2FY25, HCL Tech had initially guided a revenue growth of 3.5% - 5.0% YoY CC on organic basis.

We recommend a BUY rating on the stock and assign a 24x P/E multiple to its FY26E earnings of Rs 91/share to arrive at a TP of Rs 2,175/share. The TP implies an upside of 10% from the CMP.

HCL Technologies (HCL Tech) reported revenue of $3,533 million, up 3.8% q-o-q/4.1% y-o-y in constant currency (CC) terms, missing our estimates of $3,561 million. Revenue in rupee terms stood at Rs. 29,890 crore, up 3.6% q-o-q/5.1% y-o-y. Revenue growth was led by Software, ER&D, and Services business, up 18.7%, 5.4%, and 1.5% q-o-q in CC, respectively.

HCL Technologies (HCLT) reported a revenue of USD3.5b, up 3.8% QoQ and 4.1% YoY in constant currency (CC), above our estimate of 3.7% QoQ CC growth (largely owing to one-month inorganic contribution from HPE CTG acquisition).

We maintain BUY with a revised PT of Rs. 2,180 (valued at 28x Dec26E EPS). At CMP, the stock trades at 29.6/26.6/23.6x its FY25/26/27E EPS.

HCL Technologies (HCLT) reported a muscular 2QFY25, with revenue of USD3.4b, up 1.6% QoQ (~2.5% organic)