Shares of HCL Technologies slipped more than 1 per cent in early trade on April 22, ahead of its Q4 and full-year FY25 results announcement later today. The stock opened at Rs 1,464.60 on the NSE, tracking muted investor sentiment amid mixed expectations on growth and margin outlook.
The stock has corrected sharply in 2025 down over 23 per cent year-to-date even as other frontline IT stocks showed signs of bottoming out. Analysts say market participants are treading cautiously ahead of key management commentary on FY26 guidance, performance across IT services, ER&D, and software products verticals.
Focus on margin trend, CTG integration
Brokerage estimates suggest subdued top-line growth for Q4FY25, with the services business expected to grow 1 per cent in constant currency terms, aided by the Communications Technology Group (CTG) acquisition. However, on an organic basis, growth may remain flat. Product business seasonality is seen as a key drag on overall revenue momentum.
The company’s EBIT is expected at Rs 5,638.5 crore, up 12.4 per cent YoY but down 3.1 per cent sequentially. Margins may decline 95 bps QoQ to 18.5 per cent, despite rupee depreciation benefits, as product-led revenue remains soft.
Net profit is likely to come in at Rs 4,448.8 crore, a rise of 11.6 per cent YoY, but a sequential drop of 3.1 per cent. In rupee terms, quarterly revenue is projected at Rs 30,439.1 crore, up 1.8 per cent QoQ and 6.8 per cent YoY.
Street watches for deal wins, vertical-level outlook
Investor attention is also on large deal wins and HCLTech’s commentary on client budgets in North America and Europe. Analysts will also monitor performance in ER&D — a vertical where HCL has strong positioning — and whether discretionary spends are picking up.
The results will be followed by a 7:30 p.m. conference call where senior management, including CEO C Vijayakumar, will detail the company’s performance and outlook. His commentary on product strategy, CTG synergy benefits, and cash flow visibility could drive the stock’s next move.
Zee Business earlier reported that HCL Tech’s revenue growth in FY24 was the highest among Tier-1 IT firms, with a robust cash flow of $2.6 billion — an indicator of its operational discipline. However, weak guidance or muted Q1 cues could keep the stock under pressure in the near term.