HCLTechnologies’ share price plummeted 9% after disappointing Q4FY26 results and a miss on guidance. In fact, the entire IT sector pack is under pressure after the IT services firm posted a 4% net profit in Q4. The revenue grew 12.3% year-over-year (YoY). Brokerages have trimmed their growth estimates for the IT services company on the back of the soft FY27 guidance.
HCLTech FY27 guidance
The company slashed growth guidance to 1% to 4% YoY in constant currency (CC) terms for FY27, from 4% to 4.5% YoY CC in FY26. Overall growth for FY26 also missed the earlier guidance.
On the operating front, the EBIT margin is estimated to be in the range of 17.5%-18.5%, and the EBIT margin to be in the range of 17.5% and 18.5%.
HCLTech Q4 attrition
It reported a net addition of 802 employees during the quarter, taking its total employee base to 2,27,181 at the end of Q4FY26. The sequential increase came despite the company adding 1,712 freshers during the quarter, indicating that overall workforce movement was shaped by selective hiring rather than a broad-based push.
Brokerage view on HCLTech
Here is a look at the key brokerage views –
A bunch of brokerage houses have come up with their views on the HCLTech share price after the Q4 results.
Motilal Oswal has reiterated a ‘Buy’ with a target price of Rs 1,650 per share. This implies about 15% upside from current levels. They now expect HCL Technologies to deliver 4% annual growth between FY25 and FY28 on a compounded basis. They are factoring in softer FY27 guidance, client-specific headwinds, and early signs of GenAI-led deflation. Motilal Oswal pointed out that the company’s relative growth premium vs large-cap peers has narrowed in the near-term.
Nomura has a Buy on HCLTech as well. However, in terms of upside, they see room for just an 11% rally from current levels, factoring in a lower growth rate and the miss on the guidance. They added that, “HCLTech noted that it expects 40% of industry revenue to have deflation of 3-5% due to AI productivity, while 55% of revenues to benefit from AI-led tailwinds of higher spends on data, cybersecurity, cloud, etc. and have growth >10%.” Overall, HCLTech expects an impact of 2-3% on its portfolio from AI-led deflation.
HCLTechnologies share price performance
The share price of HCL Technologies has dropped 1.6% in the last five trading days. The stock has given a return of 6% in the last one month and has declined 5.6% in the past six months. HCL Tech’s share price has erased 2.76% over the previous one year.
HCL Technologies Q3FY26 results
In Q3 FY26, the company’s consolidated net profit declined 11% YoY to Rs 4,076 crore. Its revenue increased 13.3% from a year earlier to Rs 33,872 crore in the quarter ending December 31. In constant currency (CC) terms, the firm’s revenue grew 4.8% YoY.
Total Contract Value (TCV), or new deal wins, meanwhile, grew more than 43% YoY to $3,006 million.
HCLTech said its AI revenue came in at $146 million, up from $100 million in the previous quarter. Revenue from the company’s banking and technology verticals rose by 8.1% and 14.4%, respectively, while that from life sciences fell 2% during the quarter.
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