2 weeks Ago By Heena Ojha
Brokerages have expressed mixed views on HCLTech Ltd. following its latest earnings report. While some see potential in the company's future growth, others remain cautious due to the uncertain demand environment and tariff impacts.
HCLTech has lowered its revenue-growth guidance for the current financial year to 2–5% amid an uncertain demand environment, compared to 4.5–5% in the last fiscal.The consolidated net profit slipped 6.
2% sequentially to Rs 4,309 crore in the quarter ended March 31, 2025. However, the bottom line was in line with the consensus estimate of Rs 4,376 crore of analysts tracked by Bloomberg. The IT services firm's revenue rose 1.
2% in the fourth quarter to Rs 30,246 crore, meeting the estimates.Here's what brokerages had to say about the lender's Q4 performance.HCLTech Announces Interim Dividend Of Rs 18 Per Share; Check Record Date And Other DetailsJefferiesJefferies noted that the company has seen limited impact of tariffs on its business thus far, but it expects pressures on discretionary spending across verticals in the next few quarters.
"While HCLTech Ltd.'s fourth quarter results were in line with estimates, deal wins and relatively stronger fiscal year 2026 growth guidance of 2%-5% year-over-year constant currency were positives," the brokerage noted.However, Jefferies has trimmed their estimates by 1-2% to reflect pressures on discretionary spending across verticals in the next few quarters.
The brokerage maintains a'Hold' on the stock with a lowered price target of Rs 1,490.In its note Jefferies said, "HCL Tech's net new deal bookings at US$3 billion, up 31% year-over-year, were strong, leading to a relatively stronger growth guidance of 2-5% year-over-year on an organic basis for fiscal year 2026."This implies a weaker first half compared to the past two years at the lower end and a stronger fiscal year compared to the past two years at the upper end, which seems optimistic to the brokerage.
Stock Recommendations Today: HCLTech, M&M Financial, AU Small Finance Bank On Brokerages' RadarJPMorganJPMorgan also noted that HCLTech has seen limited impact of tariffs: "HCLT's 4Q print was refreshingly in line with an FY26 guide that hasn't been jaded by the post-tariff macro," it said.It further added that the business has not witnessed rampdowns or cancellations in line with Infosys.The brokerage noted that services have now performed ahead or at parity with the fastest-growing scale peers for three consecutive years.
Signings have been impressive in this environment, with a large deal ramp that provides visibility, which is currently rare."This underscores an organic growth outlook of 1-4% in constant currency for fiscal year 2026, ahead of peers," JPMorgan said.The brokerage has upgraded the stock to 'Overweight' as a scale growth leader in FY26 despite a margin-led 2% EPS cut.
The stock's target price has also been hiked to Rs 1,750 from the earlier Rs 1,700.However, JPMorgan cautioned that the company "hasn't seen any project cancellations and has not seen any tariff impact yet; however, it expects tariff-related headwinds to negatively impact the manufacturing and retail sectors."MacquarieMacquarie has maintained an 'Outperform' rating with a target price of Rs 2,160 on HCLTech, highlighting the company's strong performance and growth prospects.
According to Macquarie, HCLTech's FY25 revenue growth came in at 4.7% in constant currency, which was within the guidance range of 4.5-5.
0%.The brokerage noted that EBIT margin for FY25 was 18.3%, also within the guidance range of 18.
0-19.0%. Attrition for the fourth quarter fell by 20 basis points quarter-over-quarter to 13.
0%, with a net addition of 2,665 employees."Even after adjusting for a 50 basis point inorganic contribution from a Dec. 2024 (i.
e., 3QFY25) acquisition, 4Q revenue growth was above the mid-point of the original April 2024 guidance for 3.0-5.
0% growth in constant currency terms," Macquarie noted.Macquarie's outlook for FY26 includes a revenue growth guidance of 2-5%, including 90 basis points from the December 2024 acquisition, compared to 0-3% for Infosys.Stock Market Live: GIFT Nifty Indicates Positive Open; Delta Corp, HCLTech, M&M, Airtel Share Prices In Focus .
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