HCLTech Q2 Results Review: HDFC Securities Maintains 'Buy' But Trims Target Price — Here's Why

Reflecting the strong Q2 performance and positive outlook, HCLTech has raised its FY26E Services revenue growth guidance to 4-5% CC (up from 3-5%), while maintaining overall company revenue guidance at 3-5% CC. Ebit margin guidance remains at 17-18%, factoring in wage hikes and restructuring costs in H2..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.HCLTech Ltd. delivered revenue growth ahead of expectations at +2.4% QoQ CC, with margins in line with estimates. The revenue growth was driven by strong IT Services (+2.6% QoQ CC) and ER&D (+2.2% QoQ CC), while the Software segment was muted with +0.5% QoQ CC growth. Deal bookings were robust at $2.6 billion (+42% QoQ / +16% YoY), despite no mega deals, supported by two large deals signed in Q2 that were deferred from Q1. The pipeline remains strong, bolstered by advanced AI offerings. HCLTech advanced AI revenue crossed $100 million in Q2 accounting for 3% of total revenue. Reflecting the strong Q2 performance and positive outlook, HCLTech has raised its FY26E Services revenue growth guidance to 4-5% CC (up from 3-5%), while maintaining overall company revenue guidance at 3-5% CC. Ebit margin guidance remains at 17-18%, factoring in wage hikes and restructuring costs in H2. Despite near-term margin pressures, HCLTech remains optimistic, supported by strong deal momentum and strategic focus on advanced AI. We increase revenue estimate by ~1% but moderate our margin expansion trajectory, leading to an EPS cut of ~2-3%. We maintain Buy with a target price of Rs 1,700, based on 21x Sep-27E EPS..Click on the attachment to read the full report:.HCLTech Shares Upgraded To 'Add' By Dolat Capital Post Inline Q2 Results — Check Target Price.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HCLTech Q2 Results Review: HDFC Securities Maintains 'Buy' But Trims Target Price — Here's Why

Despite near-term margin pressures, HCLTech remains optimistic, supported by strong deal momentum and strategic focus on advanced AI, adds the brokerage.

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