The IT main reported a 4.2% rise in consolidated web revenue for the March quarter at Rs 4,488 crore, in comparison with Rs 4,307 crore in the identical interval final yr.
Income from operations for Q4FY26 got here in at Rs 33,981 crore, marking a 12% enhance from Rs 30,246 crore recorded within the corresponding quarter of the earlier monetary yr.
The corporate has guided for income development of 1% to 4% year-on-year (YoY) in fixed foreign money phrases, with companies income anticipated to develop between 1.5% and 4.5%. EBIT margin is projected within the vary of 17.5% to 18.5%.
On a sequential foundation, income rose marginally by 0.3% from Rs 33,872 crore reported in Q3FY26. Nonetheless, in fixed foreign money phrases, income declined 3.3% quarter-on-quarter and grew 2.4% YoY. Income in greenback phrases stood at $3,682 million, down 2.9% sequentially however up 5.3% in comparison with final yr.
Consequently, the corporate missed its FY26 income development steering. What was projected at 4%-4.5% development, got here in at 3.9% for the yr.
Companies income in fixed foreign money slipped 0.1% quarter-on-quarter however elevated 4.2% year-on-year. Income from superior AI stood at $155 million in the course of the quarter, reflecting a 6.1% sequential rise in fixed foreign money.
What are consultants saying?
Nomura has maintained its purchase name on HCL Tech, though the brokerage has trimmed its goal value to Rs 1,600 from Rs 1,700, implying an upside of about 11%. The agency flagged that FY27 development steering is weaker than anticipated, with two client-specific points more likely to act as headwinds, shaving off round 50 foundation factors from development in FY27E. On the midpoint of its steering, HCL Tech is factoring in no enchancment in discretionary demand, together with a ramp-down in enterprise from these two shoppers past earlier expectations.
Nomura now expects the corporate to ship income development of three.8% to five.6% YoY in greenback phrases over FY27 to FY28. Reflecting the softer outlook, the brokerage has additionally lower its EPS estimates for FY27 and FY28 by round 5% to 7%, factoring within the decrease development trajectory.
JPMorgan has maintained a ‘Impartial’ ranking on HCLTech and lowered its goal value to Rs 1,370 from Rs 1,419. The brokerage famous that the corporate’s This fall efficiency missed expectations on income, margins and earnings. Total income got here in 2% under estimates, with companies income trailing by 130 foundation factors versus its projections.
Administration attributed this to lowered discretionary spending by two giant US telecom shoppers and the cancellation of two SAP tasks.
HSBC has retained a ‘Maintain’ ranking and lower its goal value to Rs 1,480 from Rs 1,560. The brokerage stated the corporate’s Q4FY26 efficiency was a pointy miss, which has additionally led to weaker-than-expected development steering for FY27. The miss was primarily because of sudden finances cuts at key US telecom shoppers and the cancellation of some SAP tasks. HSBC added that earnings development and inventory returns are unlikely to compound at double-digit charges within the close to time period.
Motilal Oswal Monetary Companies has maintained a ‘Purchase’ ranking, however lowered its goal value to Rs 1,650, implying an upside of about 15%. The brokerage famous that the corporate’s softer FY27 steering is basically pushed by client-specific challenges and weak point seen in March. This contains disruptions at choose shoppers and a pointy pullback in discretionary spending within the telecom section by two giant US-based shoppers.
Geographically, Europe continues to stay weak because of geopolitical uncertainties, whereas North America is comparatively secure other than these client-specific points. Motilal Oswal additionally highlighted that weak point within the software program enterprise was partly because of delays in deal closures, influenced by components such because the US authorities shutdown and the continuing disaster in West Asia.
HDFC Securities has additionally maintained a ‘Purchase’ ranking on the inventory, whereas revising its goal value downward to Rs 1,465. The brokerage famous that companies income declined 0.1% QoQ in fixed foreign money phrases, with weak point seen throughout companies, ER&D, and software program segments. This softness was largely attributed to a slowdown within the telecom vertical and a ramp-down in SAP-related work.
(Disclaimer: Suggestions, recommendations, views and opinions given by the consultants are their very own. These don’t characterize the views of The Financial Instances)
