Mumbai, April 22 (IANS). Shares of HCL Technologies fell by more than 10 percent on Wednesday. The reason for this was the company presenting weak results in the fourth quarter of FY26, due to which many brokers expressed concern about the company’s weak earnings growth, and also cut the target price.
At 2:51 pm, HCL Technologies shares were at Rs 1,288, down 10.65 per cent.
Investors’ concern is the company’s weak performance in Q4FY26 coupled with weak earnings growth estimates for the current financial year.
HCL Technologies expects only 1-4 per cent year-on-year earnings growth in constant currency terms in FY27.
The company had performed below its guidance in FY26. In this the company had registered a growth of 3.9 percent. At the same time, the guidance was 4-4.5 percent.
The performance of the company’s services segment also remains weak. It is estimated to grow at 1.5-4.5 percent in the current financial year, which is less than the estimate of 4.8 percent for FY26.
The company’s revenue is estimated to be $3.7 billion in the March quarter of FY26. During this period, there was a decline of 3.3 percent in income in constant currency.
The stock has faced a downgrade with weak results. Jefferies maintained a bearish stance and put the stock in “underperform” category and reduced its target price to Rs 1,165.
Citi, meanwhile, maintained its “Neutral” rating but cut the target price to Rs 1,385 citing weak revenue performance, low deal success and sluggish future indicators like deal bookings and modest headcount growth.
–IANS
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