HCL Technologies has received a 'Hold' rating from ICICI Securities following its impressive quarterly revenue performance that surpassed market expectations. The IT services giant demonstrated strong operational momentum with significant growth across key business segments.

Strong Revenue Performance Beats Estimates

The company's latest quarterly results showcased robust financial performance with notable growth metrics:

The 4.2% quarter-on-quarter constant currency growth represents a substantial beat against both ICICI Securities' estimate of 2.2% and the broader market consensus of 2.8%. This performance indicates strong underlying business momentum and effective execution of the company's strategic initiatives.

Key Growth Drivers Fuel Performance

Several factors contributed to HCLTech's strong quarterly showing, demonstrating the company's diversified revenue streams and operational resilience:

• Software Products Segment: Delivered exceptional performance, serving as a primary growth driver for the quarter
• Seasonal Strength: Benefited from typical seasonal uptick in business activity
• ER&D Services: Maintained healthy traction despite market challenges
• IT Services Division: Showed robust performance across client engagements

Navigating Market Headwinds

Despite the strong overall performance, HCLTech faced certain operational challenges during the quarter. The company experienced furlough-related headwinds that impacted some business segments. However, the strong performance in software products and healthy traction in ER&D and IT services more than offset these temporary challenges.

ICICI Securities Maintains Hold Rating

Following the comprehensive analysis of HCLTech's quarterly performance, ICICI Securities has maintained its 'Hold' rating on the stock. The brokerage firm's assessment takes into account the company's revenue beat, strong segment performance, and ability to navigate market challenges while delivering consistent growth across its diversified business portfolio.

HCL Technologies has delivered strong third-quarter results for FY26, surpassing analyst expectations across key financial metrics. The IT services major reported robust performance with improved margins and significant growth in new deal acquisitions, prompting Motilal Oswal to maintain its positive outlook on the stock.

Strong Q3FY26 Financial Performance

The company's quarterly results demonstrated solid execution across multiple parameters:

The revenue growth of 4.20% quarter-on-quarter in constant currency terms significantly exceeded analyst estimates of 2.30%, highlighting the company's strong demand environment and execution capabilities.

Revised FY26 Guidance and Nine-Month Performance

HCL Technologies has updated its full-year guidance, reflecting increased confidence in its business trajectory:

For the nine-month period of FY26, the company reported revenue growth of 10.80% and EBIT growth of 5.00%, while adjusted PAT declined 1.60% year-on-year in Indian Rupee terms.

Analyst Outlook and Projections

Motilal Oswal expects continued strong performance in the fourth quarter, projecting revenue, EBIT, and adjusted PAT to grow 12.30%, 7.40%, and 9.00% year-on-year respectively in Q4FY26. The brokerage firm highlighted HCL Technologies' position as the fastest-growing large-cap company in the sector.

The research house praised the company's all-weather portfolio, which continues to demonstrate resilience and outperformance despite uncertain demand conditions in the global IT services market.

Investment Recommendation

Motilal Oswal has reiterated its BUY rating on HCL Technologies with a target price of ₹2,200, indicating a potential upside of 32.00% from current levels. The recommendation is based on the company's consistent growth trajectory, margin expansion capabilities, and strong deal pipeline as evidenced by the significant increase in Total Contract Value.