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HCLTech Q4 deal wins boost outlook, analysts see limited stock upside

HCLT is guiding for revenue growth in the range of 2-5 per cent for FY26, on consolidated basis and also its services

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HCLT has delivered many mega deal ramp-ups, participation in cloud and digital deals and used challenger status aggressively over the past three years. The GenAI story is powerful for the company

Devangshu Datta

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HCLTech (HCLT) reported a strong performance across its services and software businesses for the January-March quarter of the financial year 2024-25 (Q4FY25) despite global uncertainty and reduced discretionary spending. In constant currency, services grew by 0.7 per cent quarter-on-quarter (Q-o-Q), while the software business grew by 4.9 per cent year-on-year (Y-o-Y) in Q4.
 
HCLT is guiding for revenue growth in the range of 2-5 per cent for FY26, on consolidated basis and also its services. The management expects 1 per cent contribution to revenue from the Hewlett Packard Enterprise (HPE) acquisition, implying organic revenue growth of 1-4 per cent. For