HTHCL Technologies532281IT services

Brokerages gave mixed views on HCL Tech after Q2 results, flagging narrowed guidance band and margin concerns; management explained rationale on an interview

By ScoutQuest · Tue 13 Oct 2026, 12:41 PM IST · 1 min read

Narrowed guidance band

1 to 2.5 percent

Guidance midpoint

3 percent

Inorganic contribution this quarter

62 bps

Organic guidance downtick

10 to 12 bps

Citi target price

1050 rupees

Heard on business television between 12:41:51 - 12:44:51 IST.

• JP Morgan noted HCL Tech narrowed its guidance band from 1-2.5% to a tighter range with midpoint still at 3%, but flagged a 10-12 bps downtick in organic guidance after excluding 62 bps inorganic contribution, seen as a key concern.
• Citi maintained 'sell' on HCL Tech but hiked target price to Rs 1050 from Rs 1030, calling the quarter decent but noting H2 services guidance implies a slowdown; also said HCL trades at 20-25% premium to TCS and Infosys, a gap that widened after a 7% rally.
• HCL Tech management (Schiff/CVK) said the guidance band was narrowed because half the year is over, but midpoint was kept unchanged despite good demand, citing caution given volatile environment over past two years.
• Management said EBIT margin guidance was kept at 17.5-18.5% despite a 129 bps uptick in Q2, citing a 25 bps quarterly impact from a recent acquisition including amortization and transition costs, with profits to be reinvested in AI to gain market share.

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