Hold HCL Technologies; target of Rs 1693: Deven Choksey

Deven Choksey's research report on HCL Technologies

Q1FY26 revenue came in at INR 3,03,490 Mn. (+0.3% QoQ /+8.2% YoY), in-line with our estimates (+1.8%), driven continued growth traction across Financial services, Technology and Telecom segments. USD Revenue stood at 3,545 Mn. (- 0.8% QoQ CC/ +3.7% YoY CC), performed better than our expectations of -1.9% QoQ CC growth.

Outlook

We have rolled forward our valuation to Jun’27 estimates. We value HCL Tech at 23.0x Jun’27 EPS (at +1 SD to 7-year avg NTM P/E), implying a target price of INR 1,693. HCL Tech is currently trading at a 1-year fwd. P/E of 24.0x (in-line with its 1- year Avg. NTM P/E). We reiterate our “HOLD” rating on the stock.