Shares of HCL Tech, India’s third-largest software services company, have fallen for the third consecutive session, dropping another 4.3% to Rs 1,222 on Friday. The stock has now decreased 15% in just three sessions as investors react to weak March quarter earnings and a subdued outlook for the upcoming quarters.
The decline follows disappointing guidance that led to multiple downgrades and target price cuts. HCL Tech has projected FY27 revenue growth of 1% to 4% year-on-year in constant currency terms, missing its FY26 growth guidance of 4.0% to 4.5% with a reported growth of 3.9%.
Jefferies downgraded HCL Tech shares to Underperform with a price target of Rs 1,165. JPMorgan maintained a Neutral rating, lowering its target price to Rs 1,370 from Rs 1,419. HSBC retained a Hold rating, cutting its target price to Rs 1,480 from Rs 1,560. Citi also maintained a Neutral rating but reduced its target price to Rs 1,385, citing weak performance indicators.
CLSA kept its Outperform rating with a target of Rs 1,519, acknowledging the disappointing quarter across various metrics.
