HCL Technologies' strong Q2 earnings, accelerating artificial intelligence (AI) revenue and robust deal wins have strengthened the investment case for the IT stock, but concerns over valuations and the sustainability of a demand recovery could limit its upside. Brokerages remain divided on HCLTech's prospects after the company raised the lower end of its FY27 revenue growth guidance, with price targets suggesting potential returns ranging from an 11 percent decline to a 9 percent gain from Monday's closing price.
HCLTech shares closed at Rs 1,223 on Monday, up 0.52 percent ahead of the earnings announcement. The stock has declined 25.2 percent so far in 2026, compared with a 14.5 percent fall in the Nifty 50. The company's market capitalisation stands at Rs 3.32 lakh crore.
Nomura has maintained its Buy rating on HCLTech stock with a target price of Rs 1,330, implying an upside of nearly 9 percent from Monday's closing price. The brokerage highlighted strong performance in the services business, continued growth in AI revenue and steady progress on the company's five-pillar AI strategy.
Nomura expects operating margins to normalise over FY27 and FY28 and has raised its earnings per share (EPS) estimates for the two financial years by around 2-3 percent. It also noted that the midpoint of HCLTech's FY27 revenue growth guidance remains unchanged.
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