Shares of HCL Technologies Ltd. fell in early market trade on Tuesday despite the June-quarter earnings being broadly in line with expectations. HCLTech's Q1 beat estimates on profit, revenue and EBIT while maintaining its FY27 revenue growth and margin guidance.
HCLTech shares fell as much as 3.11% to a low of Rs 1,183 apiece.
The stock has 18 buy calls, 14 hold calls, and 15 sell calls, with an implied upside potential of 7.8% and an average target price of Rs 1,280.50.
What's Not Working For HCLTech?
- Constant-currency revenue remains weak, declining 0.5% QoQ despite sequential improvement.
- Telecom, manufacturing and ER&D businesses continue to face demand pressure since Q4.
- Rs 3,500 crore data centre investment marks an asset-heavy expansion that could weigh on margins.
- Ongoing West Asia conflict continues to impact business sentiment and execution.
- Brokerages remain cautious, with Kotak Securities and JPMorgan maintaining Reduce and Underweight ratings despite inline Q1 results.
ALSO READ: HCLTech's AI Pitch Goes Deeper Than Chatbots As It Targets Enterprise AI Infrastructure
Analyst and Management Views
Analysts also highlighted the company's record $2.4 billion deal bookings, rising AI revenue and planned Rs 3,500 crore investment in data centre infrastructure as key positives, though some cautioned that macroeconomic uncertainty could delay a broader recovery in IT spending.
Chief Executive Officer C Vijayakumar used the earnings call to lay out a far broader AI ambition, one that stretches well beyond building generative AI applications into owning key parts of the enterprise AI infrastructure stack.
The company's AI narrative has clearly evolved over the past year. Earlier, HCLTech largely positioned itself as an AI services provider, helping enterprises deploy GenAI solutions. Now, management is increasingly talking about AI factories, sovereign AI, AI gateways, AI data centres, GPU infrastructure, AI silicon and Physical AI, signalling an ambition to participate across the full AI value chain rather than remain an implementation partner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
