Why FIIs turned bearish on HCL Tech - Stock down 30% in three months

Shares of HCL Technologies have come under selling radar of FIIs in the last one year. FIIs have pared their stake from 19.15% in the March 2025 quarter to 15.5% in March 2026 quarter. FIIs have been cutting their stake amid fears of AI-led disruption in the IT sector stocks. In case of HCL Technologies, the firm has also reported subdued quarterly earnings in the last one year. 

In fact, HCL Technologies stock tanked 10% with investors losing Rs 38,000 crore post Q4 results last month. The company reported weaker-than-expected Q4 results and issued subdued growth guidance for FY27. 

Brokerages too turned cautious on the outlook, paring their target prices on their IT bet. 

The correction in the IT stock also reflects the effect of AI-led disruption and subdued set of earnings, losing 24% in a year. The recent crash after Q4 earnings puts three month losses for investors at 30%. 

HCL Technologies Price Targets 

HSBC maintained its ‘Hold’ rating but pared its target price to Rs 1,480 from Rs 1,560, citing a sharp Q4 miss and weaker FY27 growth outlook. 

The brokerage said budget cuts at top US telecom clients and SAP project cancellations as key drags. Earnings growth and return ratios are unlikely to compound in double digits in the near term.

JPMorgan maintained a ‘Neutral’ stance and lowered its target to Rs 1,370 from Rs 1,419. The brokerage said that weakness in telecom and SAP-related demand could persist into FY27.

Citi also retained its ‘Neutral’ stance with a pared target of Rs 1,385, signalling weak revenue growth, deal momentum and guidance. The brokerage said that discretionary spending cuts in telecom and SAP cancellations affected performance. 

While near-term outlook remains weak, the company may be relatively better placed over the medium term, it added.