HCLTech Q4 Review: Profit slips, guidance cut; should you buy, hold or sell now?

HCL Technologies Ltd. reported a mixed set of earnings for the March 2025 quarter, with revenue meeting estimates but profit taking a sequential dip. The company has trimmed its FY26 revenue growth guidance to 2–5 per cent, citing an uncertain demand environment and early signs of tariff-related headwinds.

The IT major’s consolidated revenue rose 1.2 per cent sequentially to Rs 30,246 crore in Q4FY25, while net profit fell 6.2 per cent to Rs 4,309 crore, broadly in line with analyst estimates. With deal wins and margins holding steady, brokerages remain divided on the stock’s near-term potential.

Jefferies: Strong deals, but discretionary spend pressures remain

Jefferies maintained a ‘Hold’ rating, lowering the target price to Rs 1,490. While the firm noted strong deal bookings of $3 billion up 31 per cent YoY, and stable guidance, it flagged risks from expected cuts in discretionary IT spending across verticals.

“HCLTech’s FY26 guidance implies a weak first half and relatively optimistic second half,” Jefferies added, trimming earnings estimates by 1–2 per cent.

JPMorgan: Upbeat on execution, raises target to Rs 1,750

JPMorgan upgraded HCLTech to ‘Overweight’, highlighting consistent growth relative to peers over the last three years. The brokerage also raised its target price to Rs 1,750, despite a 2 per cent EPS cut driven by margins.

The firm said, “Unlike Infosys, HCLTech has not seen project cancellations or rampdowns, and deal visibility remains high,” but flagged potential tariff risks to manufacturing and retail.

Macquarie: Bullish with Rs 2,160 target, notes strong FY25 delivery

Macquarie retained its ‘Outperform’ rating with a target of Rs 2,160. It noted that FY25 revenue growth stood at 4.7 per cent in constant currency within the guided range and EBIT margins held at 18.3 per cent.

Attrition dropped to 13 per cent in Q4, and headcount increased by 2,665. Macquarie expects FY26 growth of 2–5 per cent, including a 90 bps boost from a recent acquisition.

While the Street sees steady performance and strong deal wins, concerns around macro uncertainty and tariffs could weigh on short-term sentiment.