HCL Tech share price jumps 7% after Q4 results. Should you buy, sell or hold?

India's third-largest IT firm, HCL Technologies share price surged as much as 6.8 per cent on Wednesday, April 23, after the IT company posted its March quarter results in line with street expectations.

At 9:42 am, HCL Tech share price was trading at ₹1,580.60 on National Stock Exchange (NSE). The stock has gained over 10.89 per cent in past five trading sessions.

HCL Tech Q4 results 2025

On Tuesday, April 22, HCL Technologies announced an 8% year-on-year increase in consolidated net profit, reaching ₹4,307 crore for the March quarter of the previous financial year (Q4FY25). The company's operational revenue for the quarter rose by 6% YoY to ₹30,246 crore.

In constant currency (CC) terms, revenue fell by 0.8% quarter-on-quarter (QoQ) but grew by 2.9% year-on-year (YoY).

The company's dollar revenue for the quarter dropped 1% QoQ and increased 2% YoY, reaching $3,498 million.

Services revenue in constant currency rose 0.7% QoQ and 2.7% YoY, while digital revenue — accounting for 40.7% of services — saw a 12.6% YoY growth in constant currency.

The IT company reported an EBIT of ₹5,442 crore for the quarter, compared to ₹5,018 crore in the same period last year and ₹5,821 crore in the previous quarter. This reflects a 6.5% decline on a quarter-on-quarter basis, but an 8.4% increase year-on-year.

The EBIT margin rose to 18% from 17.6% YoY, but dropped from 19.5% in the previous quarter.

HCL Tech share price - Buy, sell or hold?

"HCL Tech’s financial performance indicates a well-rounded and fundamentally strong business, the company reported INR revenue of ₹30,246 crores for the quarter, reflecting a 6.1% year-on-year increase. Overall, HCLTech’s financial strength, steady growth, high return ratios, and consistent shareholder returns support the long term perspective of the company," said Seema Srivastava, Senior Research Analyst at SMC Global Securities.

Brokerage firm Choice Broking has revised its rating on HCL Tech stock to ‘add’ and has lowered the target price to ₹1,580 apiece.

“Due to ongoing global economic volatility and recession fears in the US, recovery timelines are expected to delay. While revenue & margin guidance for FY26 remain unchanged compared to FY25, risks persist in converting TCV into revenue, with uncertainty causing decision-making delays & restrained discretionary spending limiting growth. As a result, we've reduced estimates by 4-9%, adopting a more conservative margin outlook within the guided range. Consequently, we revise our rating to ‘ADD’ and lower our target price to INR 1,580, implying a PE multiple of 22x (in-line with peer group, earlier 23x) on FY27E EPS of INR 71.7,” the brokerage firm said in a report.

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