HCL Technologies’ shares took a dip of over 1.67% in Tuesday’s trading session, closing at ₹1,465 on the NSE ahead of the company’s Q4 FY25 results announcement. The stock has seen a decline of over 8% in the past month and more than 19% in the last six months, raising concerns among investors about its near-term performance.
HCL Tech Q4 FY25 Results Preview
HCL Technologies is set to announce its fourth-quarter and full-year FY 2025 results on April 22, 2025, after the market closes. The company’s senior management will host an audio conference at 7:30 PM IST to discuss the results. Analysts have been cautious yet optimistic, with expectations for the company to report double-digit revenue growth, largely driven by high demand for its digital services, including cloud computing, cybersecurity, and AI solutions.
What Analysts Are Saying
According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, HCL Tech is expected to perform well in Q4, supported by strong demand for its digital services. However, she cautioned that the company may experience a slight dip in EBITDA margins due to rising wages, increased subcontracting costs, and other operational challenges. Despite this, HCL is likely to maintain year-on-year margin growth, helped by cost management strategies and a focus on high-profit services.
Srivastava also highlighted that HCL Tech is expected to secure strong new deals, especially in the banking, insurance, and telecommunications sectors. These sectors could help diversify its client base and ensure consistent revenue growth in the future. Analysts are closely watching the management’s commentary on HCL’s FY26 outlook, particularly regarding demand trends and how the company plans to navigate global economic challenges.
Technical View: Buy, Sell or Hold?
On the other hand, Sumeet Bagadia, Executive Director at Choice Broking, provided a technical perspective, stating that HCL Tech is currently trading near a crucial support zone at ₹1,430. A breakdown below this level could lead to further downside, potentially pushing the stock down to ₹1,350. However, Bagadia remains bullish if the stock manages to sustain above ₹1,500, as this would indicate strength and potential for upward momentum beyond that point.
Conclusion: Buy, Sell or Hold?
As HCL Technologies heads into its Q4 earnings announcement, the stock shows signs of weakness due to recent price declines, but it still holds strong growth potential due to its focus on high-demand digital services. Investors looking for short-term gains may be cautious due to the potential volatility around earnings, while long-term investors might view this as a temporary dip before the stock stabilizes and recovers post-results.
In conclusion, whether to buy, sell, or hold HCL Tech depends on your investment horizon and risk tolerance. Traders may want to watch for any price movements around the ₹1,430–₹1,500 support/resistance levels, while long-term investors could consider holding the stock for its strong growth prospects in digital services.
