ICICI Securities research report on HCL Technologies
HCLT’s FY26 revenue organic guidance of 1–4% YoY CC appears optimistic at its upper end, implying -0.6% to 0.9% organic CQGR. It is supported by an exit growth rate of 1.6%. Management mentioned that it did not see any project deferral or rampdown due to tariff-related uncertainties in Q4FY25. However, it expects weakness in retail and manufacturing along with an adverse spillover to other verticals amid macro weakness. Q4 deal TCV was strong, at USD 2.995bn, up 43%/30.8% QoQ/YoY. The pipeline too is strong; however, heightened uncertainty persists in deal conversion. We cut our FY26E/FY27E EPS by 2%/2.4%, basis lower revenue estimates.
Outlook
We value HCLT on an SoTP basis – services (IT and ER&D) at 20x and products at 18x on Q4FY26E–Q3FY27E EPS. Our TP stands at INR 1,390. Retain REDUCE.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
