The share price of the HCLTech is in focus today after the IT major reported its September quarter (Q2FY26) results on October 13. The stock is upbeat and among the top Index gainers.

The company announced an interim dividend of Rs 12 per share along with steady growth in both revenue and profit metrics.

The IT behemoth posted consolidated revenue of Rs 31,942 crore for the quarter, a 5% sequential rise and an 11% year-on-year increase. Most importantly it kept the FY26 guidance unchanged. It expects 3-5% revenue growth in FY26

Following the results, leading brokerages have shared their views on the stock. In there report, the brokerages highlighted about the company’s performance, guidance, and valuation outlook.

Nomura stays bullish: ‘Buy’ with 11% upside potential

According to brokerage firm Nomura, HCLTech’s second-quarter numbers came in ahead of estimates, supported by strong revenue growth and margin expansion. The firm has maintained a ‘Buy’ rating on the stock with a target price of Rs 1,660, implying an upside of nearly 11% from current levels.

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As per the brokerage report, HCLTech’s Q2FY26 revenue stood at $3,644 million, growing 2.4% sequentially and 4.6% year-on-year in constant currency terms, beating Nomura’s 1.2% growth estimate. The company’s EBIT margin improved to 17.4%, well above expectations.

“HCL Tech’s Q2FY26 revenue of $3,644 million (+2.4% QoQ, +4.6% YoY, both in constant currency terms) was above our estimate of 1.2% q-q growth,” the brokerage noted.

It added that “EBIT margin of 17.4% was above our estimate of 16.5% (consensus 17.1%).”

Nomura expects the company’s EBIT margin to remain around 17.3% in FY26 and improve to 17.9% in FY27, even as salary hikes are planned for the coming quarters. The brokerage also believes HCLTech’s strategic focus on subscription-led products and its asset-light model will help it navigate the GenAI-driven transformation.

“We think HCLTech’s strategy to remain asset light while focussing on services in the GenAI world is a step in the right direction,” Nomura added, noting that the stock currently trades at 20.7x FY27F EPS.

Nuvama cautious: ‘Hold’ rating amid valuation concerns

Another brokerage firm, Nuvama Institutional Equities, has taken a more cautious stance on HCLTech, maintaining a ‘Hold’ rating on the stock with a target price of Rs 1,650. The brokerage noted the company’s strong quarterly performance but believes valuations leave limited room for upside.

According to the brokerage report, HCLTech’s revenue rose 2.4% in constant currency terms, ahead of street estimates, while EBIT margins expanded 110 basis points sequentially to 17.4%. The company also reported a strong total contract value (TCV) of $2,569 million, a 42% jump quarter-on-quarter.

“HCL Tech reported decent Q2FY26 results. Revenue grew +2.4% CC QoQ to $3,644 million, beating our/Streets’ estimate of +1.5% CC QoQ. EBIT margins expanded 110 bps QoQ to 17.4%, above our estimate,” the brokerage said.

Nuvama added that the company’s margin reset has weakened its earnings growth profile. It also pointed out that, with valuations now “on a par with TCS and Infosys, we see limited upside potential.” The firm expects “almost zero EPS growth in FY26 and an overhang on FY27 earnings growth as well.”

While Nuvama remains positive on HCLTech’s strong deal pipeline and cash flows, it believes the stock’s current pricing already reflects much of the near-term optimism.