The highlight of the HCLTech Q2 results included the $100 million AI revenue, large deal wins and declining reliance on H-1B visa along with steady guideance. International brokerage firm, Nomura is confident of the tech major exceeding its FY26 revenue growth guidance of 3-5%.
Here are key highlights of the HCL Tech’s Q2 performance that Nomura pegs its prediction on-
1. Nomura on HCLTech: Sees 5.9% growth ahead
Nomura noted that the HCLTech’s revenue of $ 3,644 million in Q2FY26, a growth of 2.4% quarter-on-quarter and 4.6% year-on-year in constant currency was ahead of their estimates. “We expect US dollar revenue growth rate of 5.9% in FY26-27F,” Nomura forecasts.
HCLTech raised the lower end of its FY26 revenue guidance for the services segment to 4–5 per cent from 3–5 per cent earlier.
2. Nomura on HCLTech: Impact of forex gains from rupee depreciation
IT major’s EBIT margin stood at 17.4%, an improvement of 110 basis points sequentially and 120 basis points on-year, ahead of Nomura’s estimate of 16.5%.
The brokerage highlighted that the company’s margin improvement was driven by the absence of one-offs from the previous quarter and higher utilisation levels. Forex gains from rupee depreciation added 50 basis points to margins, offsetting the 55-basis-point impact of restructuring costs. The company maintained its EBIT margin guidance of 17–18 per cent for FY27.
“We model EBIT margin of 17.3% (-100 basis points year-on-year) in FY26F and 17.9% in FY27F (+60bp YoY),” Nomura said.
3. Nomura on HCLTech: AI revenue hits $100 million
HCLTech is ramping up its focus on artificial intelligence (AI) services while staying asset-light. The company booked around $100 million in advanced AI revenue during the quarter, which accounts for nearly 3% of total revenue.
The company plans to expand into AI engineering, AI factory, and AI advisory services. It also aims to build differentiated intellectual property to help clients scale AI adoption and strengthen partnerships with technology providers across the AI stack—from GPU makers to model and platform companies.
Nomura believes HCLTech’s strategy to remain asset-light while investing in AI-led services positions it well for long-term growth. “We think HCLT’s strategy to remain asset light while focusing on services in the GenAI world is a step in the right direction,” the brokerage said in its report.
4. Nomura on HCLTech: Two large deals closed, new deal wins rise 16%
Net new deal wins came in at $2.56 billion, up 15.8% year-on-year and 41.8% quarter-on-quarter. Nomura noted that HCLTech saw steady demand conditions across most verticals during the quarter. The company closed two large deals that were delayed from the previous quarter and said its deal pipeline remains strong, driven by advanced AI offerings.
5. Nomura lifts HCLTech’s target price to Rs 1,660
The share price of HCLTech opened slightly higher by 1.45% from the previous close after the company announced its second-quarter results on October 13, after market hours. The stock has gained 5.69% in the past six months.
It continues to maintain a ‘Buy’ rating on the stock and has revised the target price to Rs 1,660 from Rs 1,650 earlier, implying an upside of 11% from the current market price of Rs 1,495.
HCLTech Q2FY26 other key highlights
Headcount increased by 3,489 during the quarter to 2,26,640, while attrition fell slightly to 12.6% from 12.8% in the previous quarter. The number of clients generating over $20 million in annual revenue rose by seven on a sequential basis. The company declared a dividend of Rs 12 per share for the quarter. Earnings per share were flat at Rs 15.6.