HCL Technologies stock tanked over 4 per cent on Tuesday after the company reported a 9.7 per cent decline in consolidated net profit for the June quarter, leaving brokerages divided in their outlook.
Emphasising that the IT services firm remains the fastest-growing large-cap IT services company with an all-weather portfolio, Motilal Oswal reiterated buy rating at a target price of ₹2,000.
Motilal reduced FY26 estimates by 3-4 per cent to account for higher investments, and kept FY27 estimates largely unchanged. Although its revenue beat estimates, the margins missed, primarily due to lower utilisation.
CLSA maintained an outperform rating at ₹1,867 target price.
Meanwhile, Citi maintained a neutral stance on HCL Tech at a reduced target price of ₹1,650 from ₹1,690 per share.
Axis Securities resumed coverage on the stock with hold rating at ₹1,750 as target price. It expects the company to witness a better recovery from H2FY26.
Downgrades
As per InCred Equities which has retained hold rating at ₹1,638 per share, the upside risks include large deal wins, stronger-than-expected margin execution, and healthy cash generation. Conversely, downside risks stem from potential delays in decision-making and ramp-downs in specific accounts.
Nuvama Institutional Equities downgraded the stock to hold at a trimmed target price from ₹1,700 to ₹1,630 per share. The brokerage added that the stock is trading at a slight premium to TCS and Infosys, leaving limited upside potential. “The weak margin in Q1FY26 and the guidance cut leave HCLT with almost zero EPS growth in FY26,” it added.
Elara Capital downgraded the stock from accumulate to sell at a reduced target price of ₹1,490, highlighting that the margin guidance came in as a negative surprise to the Street. Pertaining to revenue, it said that the growth guidance seems achievable due to the ramping up of deals.
As at 12.29 pm, the stock was down 3.19 per cent on the BSE at ₹1,568.20 after hitting an intraday low of ₹1,550.50. The stock opened lower at ₹1,590.10 against the previous close of ₹1,619.95
Published on July 15, 2025