
Morgan Stanley has reiterated its ‘Equal-Weight’ rating on HCLTech with a target price of ₹1,970, following its Q3FY25 performance. The brokerage highlighted HCLTech’s better-than-expected EBIT margins of 19.5%, supported by operational efficiencies and currency benefits, even as revenue growth fell slightly short of expectations. The services business showed steady growth, with EBIT margins in line at 17.5%.
HCLTech raised its FY25 CC revenue growth guidance to 4.5–5% from 3.5–5%, reflecting confidence in deal momentum and discretionary spending improvements. However, Morgan Stanley expressed caution on the soft growth outlook for Q4, which could weigh on FY26 performance.
In Q3FY25, HCLTech posted revenue of $3,533 million, a 3.8% QoQ increase in CC terms, with PAT up 8.4% QoQ to ₹4,591 crore. Margin guidance for FY25 remains unchanged at 18–19%, while the TCV pipeline continues to reflect growth potential.