HCL Tech shares surges 7.5% on Q2 beat; street divided on valuation
The stock has rebounded sharply from its 52-week low of ₹1,030 hit in July, though it remains well below its February peak of ₹1,780.10
HCL Technologies' shares surged 7.47% to ₹1,314.40 by mid-day Tuesday, buoyed by an earnings report that exceeded expectations. The stock has recovered from its 52-week low of ₹1,030, although it remains below its February peak. Volume surged past 1.34 crore shares by mid-day, with 65% of the orders being buy orders. The company reported EBIT margins expanding by 131 basis points to 18.2%, a 20-quarter high.
Services revenue grew by 3.0% QoQ in constant currency, while advanced AI revenue soared to $219 million, up 28.4% QoQ. The company's FY27 revenue guidance was raised to 2.5–4.0% in constant currency, though organic growth midpoint stayed relatively unchanged. HCL also announced a partnership with Anthropic to boost enterprise AI adoption.
Analysts' opinions are divided; some upgrade the stock, while others maintain a Hold rating, citing concerns over valuations and software segment performance.
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