HCL Technologies recently reported its Q4 earnings, revealing a 6.2% drop in consolidated net profit, which now stands at ₹4,309 crore. In the wake of these results, the company’s share price surged over 6.6% on Wednesday, reflecting investor sentiment towards its future performance amid fluctuating demand.

Adjusted Revenue Forecast for FY 2024

HCL Tech has revised its revenue growth forecast for the current fiscal year, now projecting a range of 2% to 5%. This adjustment is a notable decrease from the previous year’s guidance of 4.5% to 5%, illustrating the challenges posed by a volatile market environment. Analysts have presented mixed views on HCL’s latest results, with some expressing optimism about its long-term growth capabilities while others remain cautious.

Analyst Reactions to Earnings Report

• Jefferies pointed out that HCL Tech has so far felt minimal impact from tariffs but anticipates challenges in discretionary spending across various sectors in the near future. They have opted to maintain a ‘hold’ rating on the stock.

• On the other hand, JPMorgan noted that HCL Tech’s fourth-quarter figures align with its guidance for fiscal 2026, indicating stability despite macroeconomic pressures post-tariff. The brokerage has upgraded its rating to ‘overweight’, emphasizing the company’s resilience and growth potential.

Stock Performance Overview

Following the earnings announcement, HCL Tech’s stock saw notable activity. It climbed as high as 6.63%, reaching a price of ₹1,578 per share before settling at ₹1,577, marking a 6.58% increase. This performance stands in contrast to a modest 0.70% rise in the NSE Nifty 50 Index. Over the past year, HCL Tech’s shares have appreciated by 6.10%, indicating a steady growth trajectory.

• Trading Insights:
  • Current trading volume: 7.3 times the average over the past 30 days
  • Relative Strength Index (RSI): 59, suggesting the stock is nearing overbought territory

As the market continues to react to HCL Tech’s earnings report, investors are keeping a close eye on how the company navigates the uncertain demand landscape in the upcoming quarters. For ongoing updates, be sure to check out our detailed market analysis.