HCL Tech share price gains over 2% after Q2 results. Should you buy or sell the large-cap IT stock?

HCL Technologies share price: Shares of IT major HCL Technologies gained over a per cent in early trade on Tuesday, after it reported decent Q2 results. HCL Tech shares rose as much as 2,67% to ₹1,534.65 apiece on the BSE.

The third-largest IT services company in India, HCL Technologies, reported a net profit of ₹4,236 crore in the second quarter of FY26, registering a growth of 10.2% from ₹3,843 crore in the previous quarter.

The company’s revenue in Q2FY26 increased 5.2% to ₹31,942 crore from ₹30,349 crore, quarter-on-quarter (QoQ). Revenue in US dollar terms rose 2.8% to $3,644 million from $3,545 million, QoQ, while CC revenue growth was recorded at 2.4%.

At the operational level, EBIT grew 11.3% to 5,503 crore, while EBIT margin improved by 95 bps QoQ to 17.25%.

For FY26, HCL Technologies maintained revenue growth guidance at 3-5% YoY in CC (while for Services, guidance was upgraded to 4-5% from 3-5%). EBIT margin guidance was maintained at 17.0-18.0%.

The IT major also announced an interim dividend of ₹12 per share.

Analysts have maintained a bullish view on HCL Technologies shares after the company’s all-around beat on revenue. Here’s what brokerages said on HCL Tech share price and HCL Tech Q2 results:

Should you buy, sell or hold HCL Tech shares after Q2 results?

Motilal Oswal Financial Services expects HCL Technologies to deliver a CAGR of 5.3% and 7.2% in USD revenue and INR PAT over FY25-27. The company remains the fastest-growing large-cap IT services firm, and the brokerage said it likes its all-weather portfolio.

Motilal Oswal reiterated its ‘Buy’ rating on HCL Technologies shares with a target price of ₹1,800 apiece, based on 24x June 2027E EPS.

HCL Technologies raised the lower band of its FY26 guidance for the Services business by 100 bps to 4%- 5% in constant currency (CC) terms, while maintaining its overall FY26 revenue growth guidance at 3%-5% in CC terms owing to softness in the Software business. The company also maintained its FY26 EBIT margin guidance at 17%-18%.

According to Antique Stock Broking, HCL Technologies reported strong, broad-based revenue growth and robust deal wins, despite an unchanged macroeconomic environment. The brokerage firm has marginally increased its EPS estimates but retained HCL Tech share price target of ₹1,775, and continues to maintain a ‘Buy’ rating on the stock.

HCL Technologies share price has gained 4% in one month and has fallen over 6% in three months. The largecap IT stock has risen 10% in six months, but has fallen over 20% on a year-to-date (YTD) basis. HCL Tech share price has rallied 52% in three years and jumped 71% in five years.

At 9:25 AM, HCL Tech share price was trading 1.61% higher at ₹1,518.80 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.