Synopsis: HCL Technologies' shares jumped 7% after its Q4 FY25 results met expectations, with a slight edge in FY26 revenue guidance. However, a cautious outlook and weak deal wins moderated overall enthusiasm.
🔥 HCL Tech Shares Jump 7% as Brokerages Maintain Neutral Stance on In-Line Q4
Shares of HCL Technologies surged over 7% to Rs 1,587 on April 23 after the company posted its Q4FY25 results, which aligned closely with analyst expectations. Despite the uptick, brokerages like Citi and Morgan Stanley have stuck to neutral positions, citing cautious commentary and muted growth in new deal Total Contract Values (TCVs).
💼Q4 Highlights:
- Revenue rose 6% YoY to Rs 30,246 crore
- Net Profit stood at Rs 4,307 crore, an 8% YoY increase
- EBIT margin for Q4 was 18.3%, within guided range
- FY25 full-year revenue grew 6.5%, and net profit up 10.8%
While the earnings were seasonally strong, management warned of an uncertain environment, tempering future expectations. This tone impacted confidence despite a better-than-expected FY26 revenue guidance of 2–5% in constant currency, though the lower end marks a reduction from earlier targets.
🏦What Brokerages Are Saying:
- Citi: Maintained Neutral, target price Rs 1,510, with FY26 & FY27 EPS cut by 2%
- Nuvama: Maintained Buy, target price Rs 1,700, citing strong revenue guidance
- Morgan Stanley: Equal-weight, target price Rs 1,600
The broader IT sector continues to face headwinds, but HCL Tech's consistent performance and cost control measures are keeping investor hopes alive. The market rally suggests short-term optimism, even as longer-term growth remains modest.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies. We advise investors to check with certified experts before making any investment decisions.
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