
Nomura has maintained its ‘Buy’ rating on HCLTech with a target price of ₹2,000, despite what it termed a mixed Q3FY25 performance. The brokerage highlighted the company’s record deal pipeline, improved discretionary IT spending, and emerging opportunities in GenAI-driven legacy tech modernisation, data, and cloud services. It also pointed to the company’s integration of HPE CTE, which drove the revision of its FY25 CC revenue guidance to 4.5–5%, reflecting growing optimism.
However, Nomura noted that the company’s Q3 revenue was slightly below consensus estimates, even as EBIT margins expanded QoQ to 19.5%. The brokerage believes that while HCLTech has significant long-term potential, the soft exit rate anticipated in Q4 could weigh on its near-term growth trajectory.
HCLTech posted $3,533 million in revenue, a QoQ increase of 3.8% in CC terms. PAT rose 8.4% QoQ to ₹4,591 crore, and EBIT margins expanded 90bps to 19.5%. The company’s FY25 revenue guidance upgrade and strong TCV growth signal potential upside, although challenges remain in Q4.