The company’s profit after tax (PAT) stood at Rs 4,076 crore in Q3FY26, down from Rs 4,591 crore recorded in the same period last year. The PAT is attributable to the owners of the company.
Despite the fall in bottom line, revenue from operations in Q3FY26 grew 13% YoY to Rs 33,872 crore, as compared to Rs 29,890 crore in the year-ago quarter. Sequentially, net profit declined nearly 4% from Rs 4,235 crore in Q2FY26, while revenue rose 6% over Rs 31,942 crore reported in the previous quarter.
The company declared an interim dividend of Rs 12 per equity share for FY26. The record date for the dividend has been fixed as January 16, 2026, and the payment will be made on January 27, 2026.
Here is what brokerage reports suggest:
Nomura: Buy| Target price: Rs 1,810
Nomura has maintained its ‘buy’ call on HCL Tech shares, with a raised target price of Rs 1,810, up from Rs 1,790.
HCL Technologies (HCLT) reported Q3FY26 revenue of USD 3,793 million, reflecting a 4.2% sequential and 4.8% year-on-year growth in constant currency (cc) terms. The performance exceeded street estimates, which had projected 3.4% q-o-q growth (with consensus at 2.8%).By segment, IT Services, Engineering R&D, and Products revenue grew by 1.5%, 3.1%, and 28.1% q-o-q in cc terms, respectively. Net new deal wins totaled approximately USD 3 billion, up 44% YoY.
The company’s EBIT margin stood at 18.6%, up 120 basis points QoQ but down 90 bps YoY, and exceeded the consensus estimate of 18.2%. A one-off provision of Rs 9.56 billion was recorded due to higher gratuity and leave encashment costs under India’s new labour law.
Despite the margin beat, reported EPS came in at Rs 15.05, reflecting an 11% decline compared to the same quarter last year.
Goldman Sachs: Target price: Rs 1,720
Goldman Sachs has raised its target price on HCL Tech to Rs 1,720, up from earlier Rs 1,680.
Goldman Sachs has released its outlook on the Indian IT sector following the Q3 results of HCL Tech, stating that the demand environment appears stable to improving. However, companies continue to face limited visibility on the full extent of recovery in calendar year 2026 (CY26).
The banking, financial services, and insurance (BFSI) vertical has remained strong for a few quarters, and HCL Tech highlighted early signs of recovery in some other verticals. Despite this, Goldman Sachs noted that overall growth is still not broad-based.
The firm has raised its EBIT estimates for HCL Tech for FY26–FY28 by up to 3%.
Goldman Sachs concluded with a neutral-to-modestly-positive view across the Indian IT sector based on these earnings and forecasts.
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Emkay Global: Add| Target price: Rs 1,700
Emkay Global has maintained an “Add” rating on HCL Technologies with a target price of Rs 1,700.
The brokerage highlighted that the company delivered a better-than-expected operating performance in Q3FY26.
HCLTech reported constant currency (CC) revenue growth of 4.2% quarter-on-quarter and 4.8% year-on-year, which was approximately 1.3% ahead of Emkay’s projections. The strong performance was supported by robust deal wins and a healthy pipeline.
Following its 9-month performance, the company narrowed its FY26 overall CC revenue growth guidance to 4–4.5% and raised its services revenue growth guidance to 4.75–5.25%.
Emkay has accordingly tweaked its FY26–28 earnings estimates, adjusting EPS by a range of –3.4% to +0.9%.
Choice Broking: Add| Target price: Rs 1,800
Choice Broking has given an ‘add’ rating on the stock, with a target price of Rs 1,800.
HCL Technologies delivered a strong and broad-based performance, driven by rising demand for AI-powered solutions and digital transformation programs, according to Choice Broking. The company’s software segment surged 28% quarter-on-quarter to USD 425 million, exceeding expectations. Additionally, revenue from Advanced AI reached USD 146 million, marking a 19% sequential growth and underscoring the company’s traction in the AI domain.
HCLTech also expanded its ecosystem through partnerships and initiatives such as the NVIDIA Physical AI Lab, industrial AI applications with SAP, and deeper collaboration with AWS for BFSI-focused AI innovation.
As a result, Choice has slightly raised its estimates and now expects HCLTech’s revenue, EBIT, and PAT to grow at a CAGR of 11.5%, 11.8%, and 10.1%, respectively, over FY25–FY28E.