HCL Technologies Reports 21.2% Profit Increase in Q2 FY27

HCL Technologies reported a consolidated net profit of Rs 5,132 crore for the quarter ending September 2026, marking a year-on-year increase of 21.2% and a sequential rise of 11%. The company’s revenue from operations rose by 11.5% year-on-year to Rs 35,620 crore. The operating margin expanded to 18.2%, reflecting an increase of 131 basis points sequentially and 71 basis points annually. These figures were part of HCLTech’s Q2 earnings announcement made on 11 October 2026.

The company has also seen substantial growth in its artificial intelligence (AI) segment, with advanced AI revenue soaring by 78% year-on-year and 28.4% sequentially to $219 million. Additionally, HCLTech secured net new deal wins worth $3.24 billion during the quarter, which included a significant $1.14 billion AI deal with Mercedes-Benz.

Following these results, HCLTech revised its revenue growth guidance for the financial year 2027 to a range of 2.5-4%, up from the previous 1-4%. However, the midpoint of the guidance remained unchanged. The operating margin guidance was retained at 17.5-18.5%.

Brokerage firms have presented varied outlooks on HCLTech’s stock following these earnings. Nomura maintained a “Buy” rating with a target price of Rs 1,330, suggesting an upside of nearly 9% from the stock’s closing price of Rs 1,223 on 11 October 2026. The firm highlighted strong performance in the services sector and a robust AI revenue trajectory.

Conversely, HSBC opted for a “Hold” rating, setting a target price of Rs 1,225, which aligns closely with the stock’s recent closing price. While noting an improvement in demand, HSBC expressed concerns about the sustainability of this recovery due to the stock’s premium valuation compared to peers.

CLSA also retained its “Hold” rating with a target price of Rs 1,094, indicating a potential downside of approximately 11% from the closing price. The firm acknowledged that while revenue met expectations, the company’s earnings before interest and tax (EBIT) and earnings per share (EPS) slightly exceeded consensus estimates.

Market reaction to HCLTech’s performance has been mixed. The stock has faced challenges in 2026, declining by 25.2% year-to-date, which contrasts with a 14.5% decrease in the Nifty 50 index. HCLTech’s market capitalization currently stands at Rs 3.32 lakh crore.