HCLTech posted a steady set of numbers for Q4FY25, with performance broadly in line with street expectations. While revenue grew sequentially, profitability declined, and the EBIT margin contracted. The company also announced an interim dividend and reaffirmed its guidance for FY26, prompting varied responses from brokerages.
HCLTech Q4FY25 highlights
Net profit declined 6.2% QoQ to ₹4,307 crore, while revenue rose 1.2% QoQ to ₹30,246 crore. EBIT was down 6.5% at ₹5,442 crore, with the EBIT margin contracting to 18% from 19.5% in the previous quarter. Dollar revenue stood at $3,498 million, registering a 1% QoQ decline. Attrition came in at 13.0%, and total contract value (TCV) stood at a robust $2,995 million. The company declared an interim dividend of ₹18 per share for FY25.
HCLTech FY26 guidance
HCLTech expects revenue growth in constant currency to be between 2–5% YoY for the full year, including services revenue. EBIT margin is guided in the range of 18–19%, consistent with FY25.
JP Morgan on HCLTech share price
JP Morgan has upgraded the stock to Overweight with a revised target price of ₹1,750. The brokerage said Q4 was “refreshingly in-line” and appreciated the firm’s unaltered FY26 guidance despite global tariff pressures. HCLTech’s service business has consistently performed at par or better than its fastest-growing peers for three straight years. With solid deal signings and visibility from large deal ramps, JP Morgan expects 1-4% constant currency growth in FY26. A non-discretionary heavy portfolio and attractive valuations—4% dividend yield and 6% FCF yield—strengthen their investment case.
Jefferies on HCLTech share price
Jefferies has maintained a Hold rating, trimming its target price to ₹1,490. The quarter was in line, but the firm noted that despite a resilient FY26 revenue guidance of 2-5%, macro uncertainties may pressure discretionary spending across sectors. Jefferies has cut its earnings estimates by 1-2% and projects a 9% EPS CAGR for FY26–28. Valuations remain rich, prompting a cautious stance.
Nomura on HCLTech share price
Nomura has reiterated a Buy rating with a target price of ₹1,670. While Q4 was a marginal miss on revenue growth, strong deal wins were a highlight. The firm views HCLTech’s FY26 guidance as better than peers. Management flagged that the impact of tariff-induced uncertainty may extend beyond directly affected industries with a lag. However, the company has retained its 18-19% EBIT margin guidance for FY26E.
Citi on HCLTech share price
Citi remains Neutral on HCLTech with a target of ₹1,510. It called the Q4 performance and guidance “decent” given the industry environment. Citi flagged several forward indicators—deal wins were strong but down 5% YoY, headcount declined 2%, and guidance implies flat sequential growth throughout FY26. EPS estimates have been tweaked by 2%, with a reduced valuation multiple of 22x due to lower growth outlook.
Morgan Stanley on HCLTech share price
Morgan Stanley has an Equal-weight stance with a target price of ₹1,600. The brokerage highlighted that Q4 revenue decline of 0.8% QoQ in constant currency was close to estimates, while EBIT margins at 18% beat forecasts slightly. Services revenue grew modestly, while software fell more than 13%. FY26 guidance of 2-5% revenue growth and 18-19% margin is unchanged. Morgan Stanley estimates organic growth to be ~1-4% YoY in constant currency.
Nuvama on HCLTech share price
Nuvama continues to rate the stock as a Buy, with a target of ₹1,700. Q4 was broadly in line, with revenue at USD 3,498 million (-0.8% QoQ in CC) and EBIT margin at 18%. Total contract value (TCV) rose sharply by 43% QoQ and 31% YoY to USD 2,995 million. FY26 guidance of 2–5% CC revenue growth slightly exceeded expectations, with a comfortable CQGR range of 0.3–1.5%.
While HCLTech’s Q4 wasn’t spectacular, its deal momentum, margin stability, and manageable macro commentary have kept bullish brokerages optimistic. That said, concerns around discretionary spends and tariff-linked sector impacts remain key variables to watch.
Disclaimer: The views expressed are those of individual brokerages and do not represent those of the author or publication. Investors are advised to consult certified financial advisors before making any investment decisions.
