Shares of rose as
much as 4.9% in early trade on Tuesday after brokerages pointed
to a stronger-than-expected quarterly margin performance, robust
deal bookings and growing revenue from advanced AI services that
offset concerns over weaker software sales.
Shares were trading 4.4% higher at 1276.2 rupees as of 9:44
a.m. IST. The Nifty IT index was also up 3% and the
benchmark Nifty 50 index was up 0.8%.
HCLTech’s net profit rose 21.2% to 51.32 billion rupees
($538.85 million), beating analysts’ expectations of 48.59
billion rupees. The IT service provider’s annualised advanced AI
revenue rose to $219 million from $171 million in the previous
quarter.
Analysts at brokerage Jefferies noted that HCLTech is among
the few large IT firms to project revenue growth visibility of
more than 5% in constant currency in fiscal year 2028, along
with steady margin delivery.
The brokerage said the revised revenue growth guidance of
2.5% to 4% suggests a steady outlook for the services segment,
and upgraded the stock to “hold” from “underperform”.
Nomura analysts echoed the view, noting that HCLTech’s
services revenue growth and margin performance were strong in
the September quarter. They added that the EBIT margin of 18.2%
beat street expectations, helped by AI-led efficiencies,
operating leverage and a richer mix of advanced AI services.
Brokerage Systematix said strong deal bookings, which grew
to $3.26 billion from $2.57 billion a year earlier, growing
traction in large accounts, along with continued investments and
the company’s long-term AI ambitions supported its view that
HCLTech could outgrow the industry over the next couple years.