HCL Technologies posted a solid Q3 FY26 performance, with revenue and earnings both beating expectations.
Quarterly performance
- Revenue reached $3.8 billion, up 4.2% quarter‑on‑quarter on a constant‑currency basis, higher than the 2.3% growth analysts expected.
- EBIT margin improved to 18.6%, above the 18.1% forecast.
- Adjusted profit after tax (PAT) rose 13.3% quarter‑on‑quarter and 4.5% year‑on‑year to INR 48 billion.
- New contracts signed this quarter have a total contract value of $3 billion, a 43.5% increase from the previous year.
Guidance for FY26
The company now expects full‑year revenue growth of 4%‑4.5% year‑on‑year in constant currency, slightly tighter than the earlier 3%‑5% range. Services revenue is projected to grow 4.75%‑5.25%.
EBIT margin guidance remains at 17%‑18%.
Analyst outlook
- Motilal Oswal expects revenue, EBIT and adjusted PAT to grow 12.3%, 7.4% and 9.0% respectively in Q4 FY26.
- The firm labels HCL Technologies as the fastest‑growing large‑cap IT player and keeps a BUY rating.
- Target price is set at INR 2,200, implying about a 32% upside from current levels.
What this means for investors
Strong quarterly results, a robust pipeline of new deals, and a clear growth outlook suggest that HCL Technologies could continue to outperform in a mixed‑demand environment.
Remember, this is just an analysis, not a prediction. Do your own research or consult a certified advisor before making any investment decisions.