HCL Technologies has unveiled its financial performance for the fourth quarter of the fiscal year 2024-2025, showcasing robust earnings that have captivated investors. Following the announcement, the company’s share price surged by 7.4%, reaching an impressive intra-day high of Rs 1,588. Market analysts are optimistic about HCL Technologies, as they perceive minimal disruption to its operations from current tariff challenges.

Analysts Adjust Target Prices for HCL Technologies

Nomura’s Perspective: A Slight Downgrade

Nomura has revised its target price for HCL Technologies down by 9.2%, adjusting it from Rs 1,840 to Rs 1,670. This adjustment comes as company executives expressed concerns over potential tariff-induced uncertainties affecting sectors beyond just retail and manufacturing, anticipating a delayed impact. Despite a softening in discretionary spending, the management remains hopeful that clients will expedite cost-reduction initiatives. Nomura has maintained a ‘Buy’ recommendation on the stock.

Jefferies’ Take: Holding Steady

Jefferies has chosen to keep its ‘Hold’ rating for HCL Technologies, setting a target price of Rs 1,490. The earnings reported for the quarter met expectations, but the highlight was the encouraging deal wins, with a growth forecast for FY26 projected at 2%-5% year-on-year in constant currency. Jefferies noted that, so far, tariffs have had a limited effect on HCL’s business landscape, although pressure on discretionary expenditures is anticipated across various sectors.

JPMorgan’s Upgrade: Optimism Abounds

In a more favorable turn, JPMorgan has upgraded HCL Technologies to an ‘Overweight’ rating, establishing a target price of Rs 1,750. The firm found the quarterly earnings to be refreshingly in line with forecasts, asserting that the guidance for FY26 remains unaffected by tariff-related economic shifts. It highlighted that HCL’s services division has consistently performed strongly, matching or exceeding the growth of its peer companies over the past three years.

Nuvama’s Positive Outlook: Upgraded to Buy

Nuvama has elevated its stance on HCL Technologies from ‘Hold’ to ‘Buy’, while holding firm on a target price of Rs 1,700. The company’s guidance for FY26, estimating revenue growth between 2% to 5% in constant currency, slightly outpaces that of its rival Infosys, which is projected at 0% to 3%. Nuvama emphasized that the stock has seen a sharp decline of 23% year-to-date, presenting an attractive dividend yield of 4.2% for investors.

Q4 Earnings Results: Strong Performance

HCL Technologies reported a net profit of Rs 4,307 crore for the fourth quarter of FY25, reflecting an 8% year-on-year increase compared to Rs 3,986 crore in the same period last year. The company also saw its operational revenue rise by 6% year-on-year, totaling Rs 30,246 crore for Q4FY25. Additionally, HCL Technologies announced an interim dividend of Rs 18 per share for the financial year 2025-26, with the record date set for April 28 and payment scheduled for May 6.

In conclusion, HCL Technologies continues to navigate the complex landscape of the IT sector with resilience, as evidenced by its strong quarterly performance and the positive outlook from various brokerage firms. Investors are advised to keep a close watch on the evolving market dynamics and the company’s strategic responses to ongoing challenges.