HCLTech Q3 Results Review: Brokerages Hike Target Price After 'Standout Performance' — Check Full Details

Shares of HCLTech will be in focus heading into trade on Tuesday after the company reports its third-quarter earnings for the financial year ending March 2026.

The IT giant reported a consolidated bottom-line of Rs 4,076 crore in the October-December period, compared to Rs 4,235 crore in the preceding quarter, according to an exchange filing on Monday.

Analysts' consensus estimate compiled by Bloomberg projected the profit to grow by 11% to Rs 4,702 crore.

The New Labour Codes resulted in an estimated one time increase in provision for employee benefits of Rs 956 crore, the statement said.

In the wake of HCLTech's Q3 earnings, a slew of brokerages came out with a positive note on the IT giant, with the likes of Morgan Stanley, Citi and Kotak Securities hiking target price on the counter.

• Morgan Stanley maintains an Equal-weight rating and raises the target price to Rs 1,760 from Rs 1,680.

• Q3 performance surprised positively, prompting an upgrade to the full-year outlook.

• Growth visibility into FY27 appears slightly better than earlier.

• Margins are expected to normalise around an 18% base next year.

• Consensus estimates are likely to move higher.

• Strong recent performance is already reflected in premium valuations.

• The brokerage sees limited upside from current levels.

• Kotak Securities maintains a Reduce rating and raises the target price to Rs 1,680 from Rs 1,500.

• The quarter was solid overall, driven by the products segment.

• Services performance was moderately better than expected.

• Net-new bookings were strong, supported by a large deal win.

• The brokerage sees limited scope for meaningful EBIT margin expansion.

• A cost takeout-led demand environment continues to cap margin upside.

• Valuations remain rich, with the stock trading at a premium to peers.

• Citi maintains a Neutral rating and raises the target price to Rs 1,700 from Rs 1,670.

• Q3 performance and deal TCV were better than expected.

• Forward-looking indicators remain stronger than peers.

• Management is focused on identifying and tapping new spending areas.

• Citi has raised FY27 and FY28 earnings estimates by 2% each.

• The brokerage maintains a cautious stance on the IT services sector.