HCL Technologies shares surged 6% to a day’s high of Rs 1,571 on BSE in early trade on Wednesday, after the IT major reported an 8% year-on-year (YoY) rise in net profit to Rs 4,307 crore for the fourth quarter of FY25, up from Rs 3,986 crore in the same period last year.
Revenue from operations rose 6% YoY to Rs 30,246 crore. On a sequential basis, revenue grew 1%, while net profit declined 6% quarter-on-quarter.
The company reported new deal TCV (total contract value) of $3 billion, driven by its AI-led offerings and an integrated GTM (go-to-market) organization, which was established at the beginning of the fiscal year.
"The strength of our execution positions us well to capture medium-term opportunities emerging from global uncertainties, even as we navigate the short term with caution," said C Vijayakumar, CEO and MD, HCL Tech.
For FY26, the company expects revenue growth of 2–5% YoY in constant currency (CC), with a similar outlook for its services segment. EBIT margin guidance has been set at 18–19%.
During FY25, HCLTech’s revenue rose 6% to Rs 1.17 lakh crore, while CC revenue increased 4.7%. Net income for the year climbed 11% to Rs 17,390 crore.
"We have delivered another year of robust growth with a future-ready portfolio. We remain committed to creating value for all our stakeholders," said Roshni Nadar, Chairperson, HCL Tech.
Should you buy, sell, or hold HCL Tech stock? Here's what analysts say:
Nuvama
Nuvama has upgraded HCL Tech to ‘Buy’ with a target price of Rs 1,700. It noted that the company is outperforming peers despite macroeconomic uncertainty and that Q4FY25 results were in line with expectations.
The brokerage added that HCLTech’s FY26 CC revenue growth guidance of 2–5% was slightly ahead of estimates. Nuvama has maintained its FY26/27 projections and continues to value the stock at 23x FY27 PE. Following a 23% YTD correction, it sees an attractive dividend yield of 4.2%.
InCred
InCred has downgraded HCL Tech from ‘Add’ to ‘Hold’ and reduced its target price to Rs 1,585 from Rs 2,021.
The downgrade was due to limited upside from earnings revisions. While EBIT margins were in line, Q4FY25 revenue missed expectations. It also noted that the upper end of the guidance—excluding a 100 bps inorganic contribution—was only modestly above peers and hinges on the closure of key deals. The estimate revision prompted the rating change.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Revenue from operations rose 6% YoY to Rs 30,246 crore. On a sequential basis, revenue grew 1%, while net profit declined 6% quarter-on-quarter.
The company reported new deal TCV (total contract value) of $3 billion, driven by its AI-led offerings and an integrated GTM (go-to-market) organization, which was established at the beginning of the fiscal year.
"The strength of our execution positions us well to capture medium-term opportunities emerging from global uncertainties, even as we navigate the short term with caution," said C Vijayakumar, CEO and MD, HCL Tech.
For FY26, the company expects revenue growth of 2–5% YoY in constant currency (CC), with a similar outlook for its services segment. EBIT margin guidance has been set at 18–19%.
During FY25, HCLTech’s revenue rose 6% to Rs 1.17 lakh crore, while CC revenue increased 4.7%. Net income for the year climbed 11% to Rs 17,390 crore.
"We have delivered another year of robust growth with a future-ready portfolio. We remain committed to creating value for all our stakeholders," said Roshni Nadar, Chairperson, HCL Tech.
Should you buy, sell, or hold HCL Tech stock? Here's what analysts say:
Nuvama
Nuvama has upgraded HCL Tech to ‘Buy’ with a target price of Rs 1,700. It noted that the company is outperforming peers despite macroeconomic uncertainty and that Q4FY25 results were in line with expectations.
The brokerage added that HCLTech’s FY26 CC revenue growth guidance of 2–5% was slightly ahead of estimates. Nuvama has maintained its FY26/27 projections and continues to value the stock at 23x FY27 PE. Following a 23% YTD correction, it sees an attractive dividend yield of 4.2%.
InCred
InCred has downgraded HCL Tech from ‘Add’ to ‘Hold’ and reduced its target price to Rs 1,585 from Rs 2,021.
The downgrade was due to limited upside from earnings revisions. While EBIT margins were in line, Q4FY25 revenue missed expectations. It also noted that the upper end of the guidance—excluding a 100 bps inorganic contribution—was only modestly above peers and hinges on the closure of key deals. The estimate revision prompted the rating change.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
You may also like
Vile, senseless act: Global condemnation pours after Pahalgam terror attack (Ld)
'Donald Duck took my visa': Colombian president Gustavo Petro mocks Trump over travel ban
PM Modi didn't overfly Pak on return to Delhi
J&K terror attack: PIL in SC over safety, security of tourists in hilly and remote areas
"Intelligence failure": Asaduddin Owaisi asks govt to "fix accountability" for Pahalgam terror attack
