Motilal Oswal's research report on HCL Technologies
HCL Technologies (HCLT) reported 4QFY25 revenue of USD3.4b, down 0.8% QoQ and 2.9% YoY in constant currency (CC) vs. our estimate of 0.6% QoQ decline. EBIT margins came in at 18% vs. our estimate of 17.6%. New deal TCV stood at USD3b (up 43% QoQ) in 4QFY25. For FY26, HCLT provided revenue growth guidance of 2-5% YoY in CC (similar for Services). This exceeds expectations and implies a 1.3% CQGR over the next four quarters at the upper end. For FY25, revenue/EBIT/PAT grew 6.5%/7.0%/10.8% YoY in INR terms. We expect revenue/EBIT/PAT to grow by 8.2%/10.6%/1.4% YoY in 1QFY26.
Outlook
We reiterate our BUY rating on HCLT with a TP of INR1,800, implying a 22% potential upside.
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