Quick take: HCLTech’s September-quarter profit rose 21.2% year on year, well above the roughly 15% brokerages had pencilled in, and the stock was up about 4.9% by 9:38 AM on Tuesday, October 13. Early trade, so numbers below can change by the close.
What happened
HCLTech reported Q2 FY27 consolidated revenue of ₹35,620 crore, up 11.52% from ₹31,942 crore a year earlier. Net profit came in at ₹5,132 crore against ₹4,235 crore. EBIT margin was 18.2%, up 131 basis points from the previous quarter, and deal wins totalled $3,258 million. The board declared an interim dividend of ₹12 per share with a record date of October 16 and payment on October 26.
The market responded quickly. HCLTech traded near ₹1,282.70 on the NSE, and the Nifty IT index was up about 1.7% at 9:26 AM, with TCS, Tech Mahindra and Infosys also among the early gainers on the Sensex.
Why it matters
Our October 12 preview argued that guidance would matter more than the headline profit. Management kept its FY27 outlook at 2.5% to 4% revenue growth in constant currency, 3% to 4% for services, and an EBIT margin band of 17.5% to 18.5%. A quarterly margin of 18.2% sits in the upper half of that band, which helps explain why investors looked past a modest growth range.
The sector move also stands out against the backdrop. Brent crude was around $105 to $106 a barrel, and Asian peers were weak, with South Korea’s Kospi down more than 6% and Japan’s Nikkei 225 down 2.7% in early trade. IT was the one pocket pulling the domestic indices higher.
Key numbers
- Sensex: about 72,125 (+200 points, +0.28%) at 9:20 AM, versus a previous close of 71,924.68.
- Nifty 50: about 22,451 (+94 points, +0.42%) at 9:22 AM, versus a previous close of 22,363.35.
- Nifty Smallcap 100: down about 1.05% at 9:28 AM, so the rally was narrow.
- Rupee: opened at 95.17 per dollar versus 95.78 on Monday.
What to watch next
First, whether the IT gains hold through the afternoon or fade as they sometimes do after a sharp opening spike. Second, how other large IT names describe demand when they report, since HCLTech’s guidance range is fairly wide. Third, whether the weakness in Asian markets and the West Asia headlines around crude spill into broader risk appetite. Fourth, the October 16 record date for the dividend, which can affect short-term price action around that date.
Sources: BusinessToday, HCLTech Q2 results; Business Standard, market live blog, Oct 13; Upstox, market open, Oct 13.
Disclaimer: This post is for educational and informational purposes only and is not investment advice. Consult a SEBI-registered advisor before investing.
#HCLTech #TCS #ITStocks #Q2FY27 #Q2Results #EarningsSeason #Sensex #niftyit #NiftyBank #Nifty50 #NSE #BSE #TradingTips #TradingSetup #trending #TradingDiscipline #stocktrading #StockInFocus #StockToWatch
Leave a Reply