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HCLTech Q2 Review: Revenue, Margin Beat; GenAI Leads The Way — Yes Securities Upgrades Stock To 'Add'
Given limited scope for valuation re-rating post guidance upgrade, returns are likely to be moderate and primarily earnings-led, adds Yes Securities.
14 Oct 2025, 10:39 AM IST 
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HCLTech's deal pipeline is at all time high with prior investments of GenAI helping incremental deal wins.(Photographer: Vijay Sartape/NDTV Profit)
Over the FY26 and 27, HCLTech should sustain above-industry growth aided by strong deal momentum and steady ramp-up of large contracts, but margins may face pressure from elevated restructuring costs (~40bps in FY26), high investment intensity, and wage actions (~75bops in Q3 FY26 and 40bps in Q4 FY26). While its AI-led IP and platform strategy is promising, near-term earnings leverage could stay muted due to cannibalization of reven...
