Brokerages bullish on HCLTech post Q3FY26 results; raise target price

HCL Technologies (HCLTech) reported its Q3FY26 results on Monday, after market hours. Most brokerages have increased their target on HCLTech on the backdrop of robust growth visibility.  At 9:57 AM, HCLTech's share price was trading 2.24 per cent lower at ₹1,630.7 per share. In comparison, the BSE Sensex was up 0.29 per cent lower at 83,631.77. 

HCLTech Q3 results highlights:

The information technology (IT) services provider, in Q3FY26, reported a 21.3 per cent drop in quarter-on-quarter (Q-o-Q) consolidated net profit at ₹4,076 crore, as compared to ₹5,180 crore in Q2FY26. 

 

Its revenue for Q3 of 2025-26 (FY26) rose 6 per cent Q-o-Q to ₹33,872 crore, as compared to ₹31,942 crore in Q2FY26.    Also Read | Q3 Resluts Today

 

Brokerages’ view on HCL Technologies 

Nomura | Buy | Target raised to ₹1,810 from ₹1,790

Analysts have revised their FY26-28F earnings per share (EPS) by 1-4 per cent and think HCLTech’s strategy to remain asset light while focusing on services in the GenAI world is a step in the right direction.

Motilal Oswal Financial Services | Buy | Target raised to ₹2,200 from ₹2,150

The brokerage expects HCL Technologies to deliver a compound annual growth rate (CAGR) of 6.7 per cent/8.9 per cent in USD revenue/INR profit after tax (PAT) over FY25-28. 

 

“The company remains the fastest-growing large-cap IT services firm, and we like its all-weather portfolio. We have largely kept our estimates unchanged,” Motilal Oswal said. 

 

Q3 services growth of 5 per cent year-on-year (Y-o-Y) constant currency (CC) and an upgrade in FY26 services guidance to 4.75-5.25 per cent CC places HCLTech among the fastest-growing largecaps, implying 1.7 per cent Q-o-Q organic growth in Q4 despite seasonality, the brokerage said. It expects growth rates to accelerate to 6 per cent Y-o-Y in IT services in FY27E.

Centrum Broking | Buy | Target raised to ₹1,865 from 1,691

Deal momentum and management commentary suggest robust growth visibility, led by AI-driven transformation, infrastructure modernisation and legacy upgrade spend, believes analysts. 

 

Margins are expected to remain resilient within guidance, supported by automation-led efficiencies and operating leverage. Improved client mining and execution should translate into sustained earnings momentum. 

 

“We have revised our FY26E/FY27E/FY28E EPS by 0.6 per cent/1.2 per cent/0.7 per cent,” Centrum said. 

PL Capital | Buy | Target raised to ₹1,910 from ₹1,800

Analysts believe the service-led growth will continue its momentum in FY27/FY28 on the back of strong order wins and a growing AI revenue stream. Hence, they revised the topline CC growth upward by 30bps and 20bps to 7 per cent and 7.7 per cent for FY27E/FY28E, respectively. 

 

“Despite the beat on margins in Q3, Q4 is anticipated to see some normalisation, while the additional new labour code would also keep the margin in check,” the brokerage noted.

Antique Stock Broking | Buy | Target hiked to ₹ 1,825 from ₹1,775

HCLTech reported strong Q3FY26 revenue, leading to an increase in its FY26 CC revenue growth forecast to 4–4.5 per cent from 3–5 per cent, noted analysts.

 

Management expressed confidence in its service delivery and demand pipeline, while discretionary demand continues to remain muted, management is pivoting away from waiting for old discretionary cycles to return and instead targeting new pockets of spend, especially AI and infrastructure.

 

The 4 per cent decline in the brokerage’s FY26 EPS estimate reflects the impact of one-off items regarding the new labor code and restructuring cost. Based on the strong, better-than-expected quarterly performance, Antique has increased its FY27/ 28 EPS estimates by 2 per cent

 

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