Anand Rathi's research report onHCL Technologies
HCLT delivered a strong Q2FY27, with revenue growing 2.3% q/q cc (1.3% organic), led by Services (92% mix; +3.0% q/q cc; +2.3% organic). Advanced AI revenue scaled to $219mn (+28.4% q/q; +78% y/y cc; ~6% of revenue). New deal TCV surged to $3.25bn (+26.8% y/y), with LTM bookings of $10.6bn (+12% y/y), strengthening FY28 growth visibility. FY27 cc revenue guidance was revised to 2.5-4.0% (earlier: 1-4%) and Services to 3-4% (earlier: 1.5-4.5%), including 87bps/62bps inorganic contributions, leaving the organic guidance midpoint broadly unchanged. EBIT margin expanded 131bps q/q to 18.2%, with FY27 guidance maintained at 17.5-18.5%.
We upgrade HCLT to BUY from HOLD, driven by accelerating margin-accretive AI monetisation, its Anthropic Global Premier partnership, robust deal wins and improving operating efficiencies, which strengthen our confidence in medium-term growth and profitability despite near-term macro uncertainty.
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