CITI has maintained a ‘Neutral’ rating on HCL Technologies and revised the target price to ₹1,510, citing a mix of steady Q4 performance and cautious management commentary. The company reported in-line revenue and margin performance, with guidance also in-line with the subdued environment.
However, forward-looking indicators offered mixed signals:
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New deal TCV in Q4 was strong sequentially but down 5% YoY.
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Headcount declined 2% YoY.
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The FY26 revenue guidance of 2–5% YoY CC implies a flat QoQ revenue trajectory.
CITI has cut FY26/27 EPS estimates by 2% each and reduced the valuation multiple to 22x from 23x, citing lower growth expectations amid continued uncertainty.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
