HCL Technologies (HCLT IN) – Q1FY27 Result Update – Strong margin resilience; growth visibility remains blurry – Downgrade to ‘HOLD’
Published on 14 Jul 2026
HCLT completed the Jaspersoft acquisition in July, which is expected to contribute USD10–15mn of quarterly revenue (subject to seasonality) from Q2FY27 onwards. We incorporate ~0.3% inorganic contribution from Jaspersoft into our forecasts, raising our FY27E Services CC growth estimate to 2.8%. We also upgrade our FY28E Services CC revenue growth to 4.8% (from 3.5% earlier), factoring in the ramp-up of the mega deal. We estimate adjusted EBIT margins (excluding restructuring costs) at 17.9% and 18.1% for FY27E and FY28E, respectively. We value the stock at 15x FY28E EPS to arrive at a target price of INR 1,160. Following the stock's strong run-up, we downgrade our rating to HOLD (ACCUMULATE earlier).
