Brokerages stay cautious on HCLTech after FY26 Q1 beat as Citi downgrades to Sell and Nomura lifts target to Rs 1,290
AI Market Summary
HCLTech's FY26 Q1 beat, reaffirmed revenue/margin guidance, and a Rs 3,500 crore AI data-center investment signal operational resilience and continued AI-led strategy. However, broker responses skew cautious (Citi downgrade, CLSA/GS/HSBC neutral) amid concerns on slowing growth, software weakness, and premium valuation versus peers. The mix of solid execution and valuation skepticism points to limited near-term sentiment spillover beyond India IT.
Impact level
● Low
Affected assets
NCCOGOLD2USD/USDT-0.94%
AI Insight · NCCOGOLD2USD/USDTAI Insight
● Neutral
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HCL Technologies reported FY26 Q1 results, with net profit up 20% year on year to Rs 4,624 crore and revenue rising 14% to Rs 34,579 crore, while operating margin improved to 16.9%. The company kept its FY27 revenue growth guidance of 1-4% and EBIT margin guidance of 17.5-18.5%, and announced a Rs 3,500 crore investment in an AI data centre. Broker views diverged, with Citi cutting the stock to Sell, Nomura maintaining Buy and raising its target to Rs 1,290, while CLSA, Goldman Sachs and HSBC stayed broadly cautious and neutral.
