HCL Technologies delivered better‑than‑expected results, with revenue growing 4.2% quarter‑on‑quarter and a massive $3 billion deal signed, pointing to a stronger growth path.
Revenue beats expectations
The company posted a 4.2% QoQ increase in revenue, outpacing analysts’ estimates of 2.2%–2.8%. Growth was driven by its software products business, supported by seasonal demand and steady performance in engineering R&D and IT services.
Big deal adds $3 billion to the pipeline
HCL announced total contract value (TCV) of USD 3 billion, up 17% from the previous quarter and 43.5% year‑on‑year, with the highest ever annual contract value (ACV) component. The trailing‑twelve‑month TCV grew 21% YoY, positioning HCL to possibly post the fastest growth among large‑cap peers in FY27.
Future opportunities
While traditional discretionary spending is slowing, the firm sees new growth pockets in managing AI infrastructure and providing AI engineering services.
Analyst view
- Rating: Hold
- Target price: INR 1,590
- Valuation: 21× forward P/E for services, 18× for products
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.