HCLTech has received a vote of confidence from leading global brokerages after reporting a resilient performance for the first quarter of FY27. Strong earnings, record deal wins, higher margins and rapid growth in its artificial intelligence (AI) business prompted several firms to raise their target prices, although analysts remain cautious about the uncertain global demand environment.

Strong quarterly performance beats expectations

HCLTech delivered better-than-expected financial results for the June quarter while maintaining its FY27 revenue growth and margin guidance.

The company reported a consolidated net profit of ₹4,624 crore, up 3 per cent from ₹4,488 crore in the previous quarter. Revenue increased 1.8 per cent to ₹34,579 crore, while EBIT rose 3.8 per cent to ₹5,831 crore. The EBIT margin improved to 16.9 per cent, reflecting strong operational efficiency.

The company also secured record deal bookings worth $2.4 billion, highlighting continued client confidence despite a challenging business environment.

AI investments and deal pipeline boost outlook

Brokerages highlighted HCLTech’s growing AI business and its planned ₹3,500 crore investment in data centre infrastructure as key long-term growth drivers. Analysts believe these investments will strengthen the company’s position in the rapidly expanding AI services market.

However, several experts cautioned that global macroeconomic uncertainty could continue to delay broader recovery in enterprise technology spending.

Brokerages raise target prices

JPMorgan retained its ‘Underweight’ rating but raised its target price to ₹1,060 from ₹1,000, citing stronger margins while maintaining a cautious outlook.

Nomura reaffirmed its ‘Buy’ rating and increased its target price to ₹1,290, pointing to healthy quarterly execution, AI investments and improved earnings expectations.

Morgan Stanley maintained an ‘Equal-weight’ rating, raising its target to ₹1,152 while praising HCLTech’s strong AI execution and robust deal pipeline, though warning that macroeconomic uncertainty could limit near-term upside.

Meanwhile, Kotak Securities retained its ‘Reduce’ rating with a target price of ₹1,200, acknowledging strong execution while expecting deal momentum to improve further in the coming quarter