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HCLTech raised the lower end of its financial year 2025 revenue growth guidance in constant currency terms to 4.5% to 5% from the earlier guidance of 3.5% to 5%. The EBIT margin guidance was maintained between 18% to 19%.
The company reported constant currency revenue growth of 3.8% compared to the previous quarter, which was marginally lower than the estimate of 4.1%. Margins expanded by 90 basis points to 19.5%, which met expectations.
Out of the 45 analysts that have coverage on HCLTech, 20 of them have a “buy” rating, 16 say “hold”, while nine of them have a “sell” rating on the stock.
Brokerage firm Nuvama has downgraded HCLTech to “hold” from its earlier rating of “buy” citing full valuations at 28.5 times financial year 2026 price-to-earnings. It has also cut its financial year 2025 and 2026 earnings estimates by 0.6% and 3% respectively on slightly lower growth.
Nuvama now has a price target of ₹2,150 on HCLTech, from ₹2,125 earlier.
CLSA too has a “hold” rating on HCLTech with a price target of ₹1,882.
The brokerage said that despite a demand improvement tone similar to TCS, no change in the company’s mid-point of its organic growth guidance left them disappointed.
Another brokerage with a “hold” rating on HCLTech is Jefferies, with a price target of ₹2,060.
It said that the revised growth guidance of 4.5% to 5% for financial year 2025, points to a weak exit in the fourth quarter, despite upbeat commentary on TCV to revenue conversion and discretionary spends.
As a result, the brokerage has cut its revenue and Earnings Per Share (EPS) estimates by 1-2% to reflect the same.
Nomura though is bullish on the stock with a price target of ₹2,000.
It said that although the quarter was below expectations, the deal pipeline is at a record high and duration of the deals is decreasing. It further added that GenAI will drive demand in legacy tech modernisation, data and cloud.
Shares of HCLTech had seen a sharp drop towards the close of Monday’s trading session. The stock ended 1% lower at ₹1,975.
