HCL Tech Q2 Results Preview: Will Shiv Nadar's IT Giant Outperform TCS? To Declare Interim Dividend Today

HCL Technologies is likely to outperform its rival TCS in Q2 results for FY27. On Monday, HCL will declare its September 2026 quarterly performance, where it is expected to report between 2-3% revenue growth in constant currency. EBIT margins are also likely to improve further. Also, HCL is expected to hike its revenue growth guidance for fiscal 2026-27. Accordingly, the Shiv Nadar-led tech stock will be in focus on October 12.

HCL Technologies Q2 Results Preview

"We forecast organic c/c revenue growth of 2% qoq, led by the ramp-up of Guardian Life deal and seasonal strength. The acquisition of HPE's Telco Solutions business and Jaspersoft will contribute 110 bps to revenues," said analysts at Kotak Institutional Equities in their note.

Meanwhile, analysts at JM Financial predict CC revenue to see 3% QoQ growth, as 20 bps decline in cross-currency impact translates to a 2.8% change in USD terms. Further, an inorganic contribution of ~90bps expected in the quarter from HPE telco (70bps) and Jaspersoft (20bps). Also, IT Services is expected to report 2.6% cc QoQ. Inorganic contribution of 70-80bps is expected in Q2 from HPE telco.

HCL's order book is expected to improve to $3-3.5 billion in Q2 as the company had declared two major deals in the quarter namely European and Guardian.

"We expect HCLT revenue to increase by 2.4% QoQ in CC & 2.3% in USD terms, with 1.2% QoQ CC organic growth & contribution from Jaspersoft and HPE acquisitions," said analysts at PL Capital.

In terms of margins, PL's note said, "We expect EBIT margin to improve by 40bps QoQ as project maximus and some currency tailwinds largely being set off by amortisation expenses & AI investments."

Also, JM's analysts predict overall margins to improve marginally QoQ. The tailwinds for HCL in Q2 are - operational efficiencies. Headwinds—investments in business, acquisition. Impact on margins due to acquisition to be monitored.

Additionally, Kotak's analysts note said, "We expect stable EBIT margin despite rupee depreciation. Benefits from rupee depreciation will be offset by margin dilution from acquisitions. Expect a strong deal TCV of $3.75 billion, driven by EUR1 billion mega deal and a large deal from Guardian Life."

Kotak also expect HCL to increase revenue growth guidance to 3-4% from 1-4% earlier. The revised guidance includes 100 bps from the Jaspersoft and HPE Telco Solutions business acquisitions. Organic c/c revenue growth guidance will be 2-3%, or 2.5% at the midpoint, broadly unchanged from the earlier guidance.

Further, they added, "The hurdle rate to achieve the lower end and upper end of guidance stands at 2.5-3.8% during 3QFY27-4QFY27E. We expect HCLT to retain 17.5-18.5% EBIT margin guidance band, though margins could be toward the lower end."

The Shiv Nadar-backed IT giant, HCL Technologies, posted 20.4% growth in consolidated net profit to Rs 4,626 crore in the Q1 quarter for FY27, compared to PAT of Rs 3,844 crore in the same quarter last year. Also, consolidated revenue surged by 1.8% QoQ and 13.9% YoY to RS 34,579 crore in Q1FY27. In constant currency, HCL's revenue growth stood at $0.5% QoQ and 2.6% YoY in Q1FY27, which is also better than expected. The revenue from advanced AI stood at $171 million, up by 62.1% YoY and 10.6% QoQ in constant currency.

In the previous quarter, HCL retained its revenue growth guidance to 1-4% for FY27, while IT services growth guidance ranges from 1.5% to 4.5%. The EBIT margin is expected at 17.5% to 18.5%.

HCL Technologies Q2 Results Preview: Key Factors To Watch

Investors should focus on the below-mentioned factors during HCL's Q2, as per Kotak:

1. Margins in newly signed large deals.

2. AI-led deflation in the existing book and growth from AI-native services.

3. Pricing pressure in the core business and its impact on margins.

4. Factors driving consistent success in mega-deal wins.

5. Drivers of growth acceleration.

6. Progress on AI data center investments and customer commitments.

7. Revenue contribution and profitability of the Guardian Life deal.

8. Discretionary spending trends in telecom, manufacturing and ER&D.

HCL Technologies Q2 Results: Interim Dividend

Meanwhile, HCL Tech said it will consider third interim dividend for FY27 on October 12th. The record date is yet to be announced.

Earlier, HCL Tech rewarded investors with first and second interim dividend of Rs 24 and Rs 12 per share in April and July month.

HCL Technologies Q2 Results: Share Price Today

HCL Tech share price will be in focus on Monday, October 12, 2026. Last week, on Friday, the stock closed at Rs 1214.30 apiece on BSE, up by 3% with market cap of Rs 3,29,520.35 crore. However, year-to-date, HCL shares are down by nearly 26%.

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