HCL Tech Q2 Results Bring Cheer: Will Premium Valuations Limit Upside?
- October 14, 2026
- Posted by: Lakshit Sharma
- Category: News
HCL Tech Q2 results (12 Oct 2026): net profit Rs 5,132 crore (+21.2%), revenue Rs 35,620 crore (+11.5%), operating margin 18.2%. FY27 revenue guidance raised to 2.5% to 4%. Interim dividend Rs 12, record date 16 Oct. Shares about Rs 1,277 on 13 Oct (+4.4%). Brokerage targets range from Rs 1,094 to Rs 1,515.
Quick Answer
The HCL Tech Q2 results showed net profit up 21.2% to Rs 5,132 crore and revenue up 11.5% to Rs 35,620 crore, and the company raised the low end of FY27 revenue guidance to 2.5% to 4% from 1% to 4%. The HCL Tech share price rose about 4% to 5% on 13 October 2026 to around Rs 1,277, but brokerage targets are split, ranging from Rs 1,094 (CLSA) to Rs 1,515 (Centrum), and the average of the seven targets I found is about Rs 1,266, slightly below the price (my calculation). That supports the headline concern that premium valuations may limit upside, with HSBC and 360 One pointing to a premium over peers of 15% to 20%. A rise in AI revenue and a $1.14 billion Mercedes-Benz deal are the strengths, while a weaker software segment and doubts about how long the demand recovery will last are the main concerns.
The HCL Tech Q2 results came after market hours on 12 October. HCLTech and TCS have both reported, while Infosys and Wipro are yet to, and the results helped the Nifty IT index rise as much as 3% on 13 October.
This guide explains the HCL Tech Q2 results, guidance, AI revenue, deal wins, the dividend, the brokerage targets and the valuation concern. Where I calculate a figure myself, I label it.
Good results do not always leave room for further gains, so the price matters as much as the numbers.
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HCL Tech Q2 Results: The Numbers
| Item | Q2 FY27 | Comparison |
|---|---|---|
| Net profit | Rs 5,132 crore | Up 21.2% from Rs 4,235 crore; up 11% on the previous quarter |
| Revenue from operations | Rs 35,620 crore | Up 11.5% year on year; up about 3% on the previous quarter |
| Operating margin | 18.2% | Up 131 bps on the previous quarter and 71 bps year on year |
| Advanced AI revenue | $219 million | Up 78% year on year and 28.4% on the previous quarter; annualised about $876 million |
| Net new deal wins | $3.24 billion | Includes a $1.14 billion deal with Mercedes-Benz |
| Interim dividend | Rs 12 per share | Record date 16 October; payment 26 October |
In the HCL Tech Q2 results, sequential revenue growth resumed after two quarters of declines, which is a positive sign. One analyst said that constant-currency revenue growth was slightly below expectations, and the software segment was weaker.
Alongside the HCL Tech Q2 results, the company announced a global partnership with Anthropic to support governed agentic AI solutions for enterprise clients.
Data note: One report put the revenue guidance range and AI revenue labels differently, so check the company’s investor release for the exact terms.
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FY27 Guidance After the HCL Tech Q2 Results
| Item | New guidance | Earlier |
|---|---|---|
| Revenue growth | 2.5% to 4% | 1% to 4% |
| Operating margin | 17.5% to 18.5% | Unchanged |
With the HCL Tech Q2 results, only the lower end of FY27 guidance moved up, so the midpoint changed little. CLSA expects FY27 constant-currency revenue growth of 3%, which is at the low end of the range.
Risk: A guidance range that starts at 2.5% leaves room for slow growth, and a weaker demand recovery would pull results to the bottom of it.
Brokerage Targets After the HCL Tech Q2 Results
| Brokerage | Rating | Target price | Move from Rs 1,277 (my calculation) |
|---|---|---|---|
| Centrum | Buy | Rs 1,515 | About +18.6% |
| Nomura | Buy | Rs 1,330 | About +4.2% |
| Nuvama Institutional Equities | Hold | Rs 1,250 | About -2.1% |
| Prabhudas Lilladher | Hold | Rs 1,230 | About -3.7% |
| HSBC | Hold | Rs 1,225 | About -4.1% |
| 360 One | Hold | Rs 1,220 | About -4.5% |
| CLSA | Hold | Rs 1,094 | About -14.3% |
The average target price across these seven brokers is about Rs 1,266, or about 0.8% below Rs 1,277 (my calculation). Another aggregate shows an average target price of Rs 1,277.55, which is almost the same as the price, so upside after the HCL Tech Q2 results looks limited on the street view.
Nomura values the stock at 16 times FY28 EPS and Centrum at 19 times Sept 2028 EPS, while 360 One uses about 15 times. 360 One says the valuation is a 15% to 20% premium to larger peers, and HSBC also flags a premium given lower operating margins.
Risk: If the market treats the premium as too high, the stock may give back part of the 4% to 5% gain even after good HCL Tech Q2 results.
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HCL Tech Share Price and the Valuation Question
| Item | Level |
|---|---|
| Close on 12 October | Rs 1,223 |
| Quote on 13 October | About Rs 1,277, up 4.4% |
| Intraday high on 13 October | About Rs 1,289, up about 5.4% |
| Market capitalisation | About Rs 3.32 lakh crore |
| Year to date (before results) | Down about 25%, against the Nifty 50 down about 14.5% |
| Dividend yield | About 0.9% (my calculation: Rs 12 divided by Rs 1,277) |
After the HCL Tech Q2 results, the HCL Tech share price is still well below where it started the year, but a 5% rise in a day moves the price to the levels many brokers use as fair value. That is the core of the premium valuation debate.
One report showed the stock down 3.81% at 9:17 am on 13 October while also saying it rose 5.39%, so the intraday data is inconsistent, and I use the quote of Rs 1,277 from another source.
What to Watch Next After the HCL Tech Q2 Results
- Record date of 16 October for the Rs 12 interim dividend
- Q3 growth in constant currency after the HCL Tech Q2 results, against the 2.5% to 4% guidance
- Software segment recovery and margin against 17.5% to 18.5%
- AI revenue progress after the 78% year on year rise
- Infosys and Wipro results for the read across to IT demand
Conclusion
The HCL Tech Q2 results were solid on profit, AI revenue and deals, but the street targets cluster around the current price and several brokers see a premium to peers. Treat the rally as a sign of improving sentiment and check valuation before adding.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
What were the HCL Tech Q2 results?
Ans. Net profit was Rs 5,132 crore, up 21.2%, on revenue of Rs 35,620 crore, up 11.5%, with an operating margin of 18.2%.
What is the FY27 guidance after the HCL Tech Q2 results?
Ans. Revenue growth guidance is 2.5% to 4% and operating margin guidance is 17.5% to 18.5%.
What is the HCL Tech dividend?
Ans. The interim dividend is Rs 12 per share, with a record date of 16 October and payment on 26 October 2026.
What are the brokerage targets after the HCL Tech Q2 results?
Ans. They range from Rs 1,094 (CLSA) to Rs 1,515 (Centrum), with Nomura at Rs 1,330 and several Hold ratings near Rs 1,220 to Rs 1,250.
Why might valuation limit upside?
Ans. Brokers see a premium of 15% to 20% to larger peers, and the average target is close to the current price.
How big is HCL Tech’s AI revenue?
Ans. In the HCL Tech Q2 results, advanced AI revenue was $219 million, up 78% year on year.
What are the risks after the HCL Tech Q2 results?
Ans. A weaker software segment, doubts about the demand recovery, premium valuation and currency moves.
Is this article investment advice?
Ans. No. It is educational and not a recommendation.