HCLTech up 7% post Q4 results; Stock sees best day since 2019; Key details

Shares of HCL Technologies rallied over 7 per cent on Monday after its bottom line for the fourth quarter of the previous financial year met the street's expectations, while the revenue growth for the year came in line with guidance. 

 

HCLTech's stock rose as much as 7.4 per cent during the day to ₹1,590 per share, the biggest intraday gain since September 14, 2019, according to Bloomberg data. The stock trimmed gains to trade 6.6 per cent higher at ₹1,577 apiece, compared to a 0.39 per cent advance in Nifty50 as of 10:05 AM. 

 

The IT counter snapped its one-day fall on Wednesday to continue the 21 per cent recovery from its lows of 1,302, which it hit earlier this month. The stock has fallen 17.4 per cent this year, compared to a 2.9 per cent advance in the benchmark Nifty50. The IT major has a total market capitalisation of ₹4.2 trillion, according to BSE data.  

 

HCLTech Q4FY25 results: Key numbers here:

 

HCL Technologies reported an 8.10 per cent rise in net profit to ₹4,309 crore for the quarter ended March 2025 (Q4FY25), compared to ₹3,986.00 crore in the corresponding quarter of the previous year. Revenue for the quarter increased by 6.13 per cent to ₹30,246.00 crore from ₹28,499.00 crore.

 

For the full year ended March 2025, net profit grew 10.81 per cent to ₹17,399.00 crore, up from ₹15,702.00 crore in the previous year. Annual revenue rose 6.50 per cent to ₹1,17,055.00 crore from ₹1,09,913.00 crore in the year ended March 2024. 

 

HCLTech guidance 

 

The IT giant expects revenue growth to be in the range of 2 per cent to 5 per cent on a constant currency basis. That is lower than the guidance it provided over the past few years, but still higher than its larger rival, Infosys, which expects to grow between 0 per cent and 3 per cent.

 

“While there has been no specific impact so far, this will play out much faster in the consumer and manufacturing sectors. No vertical will be left behind,” Chief Executive Officer (CEO) and Managing Director C Vijayakumar said at a news conference on Tuesday.

 

HCLTech deal pipeline

 

The total contract value was $2.9 billion during the fourth quarter and $9.2 billion for the full year. The CEO said the top end of the guidance accounts for the fact that deal closures will be as expected, while the lower end considers macroeconomic uncertainty. Manufacturing, retail, and consumer packaged goods businesses contributed 19 per cent and 9.8 per cent to the company’s top line for the financial year ending March 31.  

 

Result analysis: Citi on HCLTech Q4FY25

 

Forward-looking indicators remain mixed, according to Citi. While the new deal total contract value was strong in the fourth quarter, it declined 5 per cent year-on-year. Headcount dropped 2 per cent year-on-year, and revenue guidance stands at 2–5 per cent growth. Management flagged a highly uncertain environment but remains focused on opportunities, it said. 

 

Citi has revised FY26/FY27 EPS estimates down by around 2 per cent and lowered the target multiple to 22x (from 23x), setting a new target price of ₹1,510. HCL Technologies, along with Infosys, remains Citi’s preferred pick among large-cap IT stocks.

 

Result analysis: Nomura on HCLTech Q4FY25

 

HCL Technologies’ Q4 FY25 results were slightly below expectations on growth, but strong deal wins stood out. Nomura has cut its FY26–27 earnings per share (EPS) estimates by around 2 per cent and lowered the target price to ₹1,670 from ₹1,840, citing rising macroeconomic uncertainty. The stock currently trades at 20x FY27 EPS.

 

HCLTech Analysts ratings 

 

Out of the 46 analysts tracking the company, 22 analysts have a 'buy' on the stock, 16 have a 'hold' call, while eight suggest to 'sell', according to Bloomberg data. The consensus target price of the stock stands at ₹1,650, a potential upside of 4.6 per cent.