HCL Technologies shares jumped 4 percent on Tuesday, leading Nifty gainers after strong fiscal second quarter earnings. The company reported a net profit of Rs 5,132 crore and significant AI revenue growth. While many brokerages remain divided on the stock, HCLTech also raised its FY27 revenue growth guidance for investors.
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HCL Technologies shares surged 4 percent in early trade on Tuesday, emerging as the top gainer on the Nifty 50 after the IT services major reported strong fiscal second quarter earnings, robust artificial intelligence (AI) revenue growth and large deal wins. The company also raised the lower end of its FY27 revenue growth guidance, although brokerages remain divided over the stock's upside potential.
HCLTech shares climbed to Rs 1,272, compared with Monday's closing price of Rs 1,223. Despite Tuesday's rally, the stock remains down 22.2 percent so far in 2026, against a 14.2 percent decline in the Nifty 50. The company's market capitalisation stood at Rs 3.45 lakh crore.
The gains came amid a positive opening for the broader market. At 9:18 am, the Sensex was up 259.62 points, or 0.36 percent, at 72,184.30, while the Nifty gained 84.25 points, or 0.38 percent, to 22,447.60. However, market breadth remained negative, with 1,141 shares advancing against 1,343 declining and 151 remaining unchanged.
HCLTech on Monday reported a consolidated net profit of Rs 5,132 crore for the September quarter, up 21.2 percent year-on-year, while revenue rose 11.5 percent to Rs 35,620 crore. Operating margin expanded 131 basis points sequentially to 18.2 percent.
The company's advanced AI revenue surged 78 percent year-on-year to $219 million, while net new deal wins stood at $3.24 billion, including a $1.14 billion mega AI deal from Mercedes-Benz. HCLTech raised the lower end of its FY27 revenue growth guidance to 2.5 percent from 1 percent, retaining the upper end at 4 percent. Its operating margin guidance remained unchanged at 17.5-18.5 percent.
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Brokerages offered mixed assessments of HCLTech's outlook following the results. Nomura maintained its Buy rating with a target price of Rs 1,330, citing strong services performance, rising AI revenue and progress on the company's AI strategy. The target implies an upside of about 4.6 percent from Tuesday's early trading price.
HSBC retained its Hold rating with a target price of Rs 1,225, highlighting uncertainty over the sustainability of improving demand and concerns about premium valuations. CLSA also maintained its Hold rating, with a target of Rs 1,094, despite acknowledging strong deal wins and AI-led growth opportunities.