HCLTech’s shares leapt 5% to ₹1,279.2 on Tuesday, driven by a Q2 earnings‑per‑share beat that spurred brokerages to lift their forecasts. The jump came after the firm announced a constant‑currency revenue growth outlook of 2.5%–4% for FY27, up from the previous 1%–4% range.
Nomura kept its buy call but bumped its price target to ₹1,330, while Jefferies moved the stock to hold and raised its target to ₹1,150. HSBC stuck with a hold at ₹1,225, citing recent demand uptick but flagging sustainability concerns. Citi, on the other hand, downgraded the rating to sell at ₹1,050, warning that the 20–25% premium over peers like TCS and Infosys could be risky.
Earnings analysts, 45 in total, have 18 buy, 16 hold, and 11 sell recommendations. The consensus price target suggests only a 2.1% upside from current levels, even as the stock trades at a premium valuation multiple to peers.
The EPS upgrades from Nomura, Citi, and DAM Capital lifted earnings estimates by 2% to 3%, and Jefferies raised its EPS forecast by a similar margin. Nomura expects margin normalization by FY27/28, backed by steady progress on its five‑pillar AI strategy.
The rally has lifted the whole Nifty IT index, with TCS up 4.5%, Mphasis 3.5%, and Wipro, Tech Mahindra, and Infosys following in the 1–2.5% range. Market participants now focus on whether HCLTech can sustain higher margins and demand momentum into the next quarter.
Looking ahead, the company’s guidance for FY27 includes a higher revenue upside, and analysts anticipate that margin improvement will drive further upside, while the sustainability of demand remains a key risk factor.