HCLTech Q2 Results Review — Motilal Oswal Maintains 'Buy' Post A Standout Quarter, Sees 20% Potential Upside

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Motilal Oswal Report

HCLTech Ltd. reported Q2 FY26 revenue of $3.6 billion, up 2.4% QoQ constant currency vs our estimate of 1.7% QoQ CC growth. Ebit margin came in at 17.4% vs our estimate of 16.8%. New deal total contract value stood at $2.6 billion (up 15.8% YoY) in Q2 FY26.

For FY26, revenue growth guidance was maintained at 3-5% YoY in CC (while for Services, guidance was upgraded to 4-5% from 3-5%). Ebit margin guidance was maintained at 17.0-18.0%.

For H1 FY25, revenue/Ebit grew 9.4%/3.3% and PAT declined 4.9% YoY in INR terms. We expect revenue/Ebit/PAT to grow 10.2%/4.5%/10.2% YoY in H2 FY26.

HCLTech is the fastest-growing large-cap IT services company, and its all-weather portfolio remains the best large-cap bet in an uncertain macro environment. We reiterate our Buy rating on HCLTech with a target price of Rs 1,800, implying a 20% potential upside.

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