HCLTech shares jumps nearly 7% after Q4 results. Should you buy, hold or sell?

Source : INDIA TODAY NEWS

HCL Technologies shares surged nearly 7% in early trade on Wednesday, hitting a day’s high of Rs 1,590 on the Bombay Stock Exchange, following the company’s fourth-quarter results that beat Street expectations on key metrics like deal wins and profitability.

At around 10:30 am, shares of HCLTech were trading 6.62% higher at Rs 1,578.10 on the BSE.

The IT major reported a net profit of Rs 4,307 crore for Q4FY25, marking an 8% year-on-year increase. Revenue from operations rose 6% YoY to Rs 30,246 crore. However, on a sequential basis, revenue growth was muted at 1%, and net profit slipped 6% compared to the previous quarter.

The company’s standout figure for the quarter was its total contract value (TCV) of new deals, which came in at $3 billion—an impressive 31% jump YoY. Much of this momentum was attributed to HCLTech’s growing focus on AI-led offerings and its newly integrated go-to-market (GTM) organization.

“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 of HCLTech.

For FY26, HCLTech has projected constant currency (CC) revenue growth between 2% and 5%. EBIT margin guidance remains steady at 18–19%. For the full year FY25, HCLTech’s revenue grew 6% to Rs 1.17 lakh crore, with net income rising 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 of HCLTech.

WHAT SHOULD INVESTORS DO?

Brokerages are divided on the stock’s immediate prospects, but most agree HCLTech is better positioned than some of its peers.

Nuvama: Upgrade to ‘Buy’, Target Price Rs 1,700: Nuvama upgraded the stock, highlighting that HCLTech’s FY26 guidance was slightly above expectations and that the company has outperformed in a tough macro environment. With the stock correcting 23% year-to-date, Nuvama sees value, especially with a 4.2% dividend yield.

InCred: Downgrade to ‘Hold’, Target Price Rs 1,585: Citing limited upside from earnings revisions, InCred downgraded the stock. It noted that Q4 revenue missed expectations and the upper end of the guidance (excluding inorganic gains) only modestly exceeded that of peers. The firm sees the stock as fairly valued for now.

Jefferies: Maintain ‘Hold’, Target Price Rs 1,490: While Jefferies acknowledged strong deal wins, it flagged continued pressures on discretionary IT spending. The firm expects a weak first half of FY26 and trimmed earnings forecasts slightly.

JP Morgan: Upgrade to ‘Overweight’, Target Price Rs 1,750: JP Morgan remains upbeat on HCLTech’s execution and consistency, noting that it hasn’t faced project cancellations like Infosys. However, it flagged risks from potential US tariff impacts, especially in manufacturing and retail verticals.

Macquarie: Maintain ‘Outperform’, Target Price Rs 2,160: The most bullish among brokerages, Macquarie said HCLTech delivered a solid FY25 performance with CC revenue and EBIT margins within guidance. It believes the company is well-positioned to benefit from its robust deal pipeline.

HCLTech’s Q4 results and deal momentum have helped the stock rebound, but the outlook for FY26 remains cautious. While some brokerages see limited near-term upside, others are betting on medium-term growth driven by AI deals and a diversified portfolio.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

SOURCE :- TIMES OF INDIA