Investors are gung-ho about HCL Technologies, following its fourth-quarter earnings and guidance commentary.
The stock gained 7% in early session on Wednesday, driven by the company's strong deal wins and guidance, which is considered better than its peers.
India’s third-largest IT company posted a consolidated net profit of ₹4,307 crore for the March quarter, up 8.1% year-on-year.
Revenue rose 6.1% to ₹30,245 crore, impacted by persistent weakness in discretionary tech spending across key markets.
Operating margins were stable at 18%, compared to 17.6% a year earlier.
For FY26, HCL Tech expects revenue to grow between 2%-5% in constant currency terms. Margins are expected to remain in the 18%-19% range.
The company reported deal wins worth $3 billion for the quarter.
CEO C Vijayakumar said the company delivered a strong finish to the fiscal year and remains focused on building next-gen offerings around AI and automation.
“Our pipeline continues to be healthy, and we are confident in our ability to drive growth despite the current macro uncertainties,” he said in a statement.
The board also declared an interim dividend of ₹18 per share.
JPMorgan upgraded HCL to ‘Overweight’ with a price target of ₹1,750, representing an 18% upside. With a dividend yield of 4% and 6% free cash flow (FCF) yield, JPM sees strong value in the stock.
Data from Stocktwits indicates retail sentiment has reduced to ‘bearish' from ‘extremely bearish’ a week ago, while message volume was ‘high.’
HCL Tech is down 17% year-to-date (YTD).
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