
CLSA has reiterated its ‘Hold’ rating on HCLTech with a target price of ₹1,882, pointing to an in-line Q3FY25 performance. The brokerage noted that while the company saw improved demand momentum across smaller deals, the unchanged mid-point of its FY25 organic growth guidance at 4.5–5% was slightly disappointing, especially given the demand improvement.
The brokerage highlighted that HCLTech’s margin expansion to 19.5% was a positive, despite the headwinds from wage hikes and acquisition-related costs. However, it remains cautious about near-term growth momentum. CLSA continues to see HCLTech as well-positioned but believes the current valuation justifies a neutral stance.
HCLTech posted $3,533 million in Q3 revenue, up 3.8% in constant currency (CC) terms. EBIT margins expanded 90bps QoQ to 19.5%, and PAT rose 8.4% QoQ to ₹4,591 crore. The company raised its FY25 CC revenue growth guidance to 4.5–5% from the earlier 3.5–5%, while maintaining margin guidance at 18–19%.