HCL Tech shares rise 2% after Q2 results beat estimates, brokerages raise guidance; check upside, target prices

HCL Technologies Ltd

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Shares of HCL Technologies Ltd climbed nearly 2 percent to Rs 1,523.90 in early trade on Tuesday after the IT major posted better-than-expected revenue and profit for the July-September quarter, and reported robust deal wins. The gains came as multiple brokerages turned more positive on the stock, citing improved growth guidance in the company’s core services business and a strong order pipeline.

At 9:17 am, HCL Tech stock was up 1.95 percent at Rs 1,523.90 on the NSE, compared with its previous close of Rs 1,495. The stock has gained over 3.5 percent in the past month but remains down 18 percent over the last one year.

Q2 performance and guidance

The company retained its full-year FY26 revenue growth guidance at 3-5 percent in constant currency terms, while EBIT margin guidance remained unchanged at 17-18 percent. Within this, HCL Tech raised its services segment growth guidance to 4-5 percent from 3-5 percent earlier -- now the highest among India’s top five IT firms.

Deal momentum remained strong, with total contract value (TCV) of new deal wins at $2.57 billion, up 42 percent sequentially and 16 percent year-on-year. CEO C Vijayakumar said the company surpassed $2.5 billion in new bookings “without reliance on any mega-deal,” underscoring broad-based client traction.

Brokerage views

• Jefferies has a Buy rating on HCL Tech stock with a target price of Rs 1,730 per share, citing strong Q2 revenue growth and robust deal wins. It raised FY26 services growth guidance to 4-5 percent and expects a 9 percent EPS CAGR over FY26-28, adding that HCL Tech’s infrastructure services lineage and AI strategy position it well for market share gains.
• Nomura also has a Buy call with a target of Rs 1,660, highlighting strong performance across metrics and margin stability. It expects margins to normalise in FY27 and sees continued focus on an asset-light AI services model.
• Citi has a Neutral stance with a target price of Rs 1,600, noting the Q2 beat and the improved services growth outlook but flagging macroeconomic uncertainty.
• CLSA has an Outperform rating with a target of Rs 1,660, pointing to strength across revenue, margins, and order bookings. It said a sustained margin recovery to 18-19 percent in FY27 could be key to a re-rating.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.