HCL Tech stock extends losses, falls over 2% after Q3 results as brokerages flag limited near-term upside

HCL Technologies Ltd

• HCL Tech shares fell over 2 percent after cautious brokerage views on Q3 results
• Brokerages praised strong Q3 but flagged seasonality and valuation risks
• Nomura gave a Buy rating, citing AI-led growth and margin normalisation hopes

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Shares of HCL Technologies deepened losses in late morning trade on Tuesday, slipping more than 2 percent as investors reacted to a largely cautious set of brokerage views following its Q3 FY26 results.

HCL Tech stock was trading 2.37 percent lower at Rs 1,628 around 10 am, hovering near the day’s low, underperforming a firmer broader market. The stock has now given up its pre-results gains and remains over 16 percent lower over the past year. That was also a key factor tempering sentiment even after a strong operational quarter. Broader market sentiment was positive, with benchmark indices NSE Nifty and BSE Sensex seeing moderate gains.

Brokerages broadly acknowledged HCL Tech’s strong Q3 delivery, marked by robust deal wins, stable margins, and a guidance upgrade that places the company at the top end of the peer growth range. However, most analysts stopped short of turning bullish on the stock, flagging seasonality risks, valuation comfort, and historical return patterns as constraints on near-term performance.

Citi maintained a Neutral rating with a target price of Rs 1,700, noting that while HCL Tech’s forward indicators and deal pipeline are stronger than peers, the current valuation leaves little room for sharp upside.

HSBC and CLSA reiterated Hold calls, with CLSA highlighting that Q4 growth could turn sequentially negative due to seasonal weakness in the products business, a phase during which the stock has historically underperformed.

Among the brokerages, Nomura stood out with a Buy rating and a target of Rs 1,810, citing confidence in HCL Tech’s AI-led, services-driven growth strategy and expectations of margin normalisation in FY27.

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