HCL Technologies Ltd. share price target

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

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.

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.

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 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.

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

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 Q2FY25 earnings exceeded our expectations, despite revenue aligning our projections.
Revenue stood at INR 288,620 Mn, up 6.2% YoY in CC (+1.6% QoQ CC).

Broad-based and better-than-expected growth. Guidance is broadly left unchanged. HCLT does not want to extrapolate strong 2Q into 2H