HCL Tech rallies 24% from July low; hits 3-month high on huge volume

HCL Tech expects demand to remain resilient as the industry transitions from AI disrupted to AI-native services, driven by ongoing modernization imperatives and AI-led transformation.

HCL Technologies share price movement

 

Share price of HCL Technologies rose 2.5 per cent to ₹1,276 on the NSE in Friday’s intra-day deals amid heavy volume in an otherwise weak market. 

 

The stock price of the information technology (IT) company quoted at its highest level since April 22, 2026. It bounced back 24 per cent from its monthly low of ₹1,030 touched on July 1, 2026. The stock hit a 52-week high of ₹1,780.10 on February 3, 2026.

 

At 09:52 AM, HCL Tech quoted 1 per cent higher at ₹1,257, as compared to 1 per cent decline in the Nifty 50. The average trading volume at the counter jumped multiple-fold, with a combined 4.11 million equity shares changing hands on the NSE and BSE.

 

What’s driving HCL Technologies 24% rebound from July low?

 

Overall, HCL Tech expects demand to remain resilient as the industry transitions from AI disrupted to AI-native services, driven by ongoing modernization imperatives, AI-led transformation, cloud value optimization, cyber security needs and the expanding adoption of Advanced AI capabilities, including in physical and operational environments.  In this operating context, sustained performance will depend on disciplined execution, alignment with areas where technology investment is accelerating and the ability to deliver measurable outcome while meeting evolving governance and regulatory expectations. 

 

HCL Tech believes that its strategic alignment with these high-conviction technology themes, combined with continued investment in AI-led service delivery, proprietary platforms, cyber security, Physical AI and full AI stack capabilities spanning data foundations, model and agent engineering, cloud-to-edge deployment and lifecycle assurance positions it to address evolving client expectations and capture growth in areas where enterprise spending is increasingly concentrated, the company said.

 

Meanwhile, analysts at Motilal Oswal Financial Services post June quarter (Q1FY27) earnings; expect HCL Tech to deliver a USD revenue compound annual growth rate (CAGR) of 4 per cent/INR profit after tax CAGR of 12.0 per cent over FY26–28, with earnings before interest and tax (EBIT) margins of 17.8 per cent. Client-specific issues in key verticals such as telecom have reduced HCL Tech’s growth premium in FY27E. That said, a potentially strong exit as well as continued strong deal wins could restore the gap in FY28E, the brokerage firm said.

 

Analysts further said they continue to like HCL Tech's all-weather portfolio. Its investments in Sarvam and the AI data center business strengthen its long-term AI positioning. “We have kept our estimates unchanged and reiterate our BUY rating with a revised target price of ₹1,450 based on 18x FY28E EPS (earlier 16x). We maintain HCL Tech as our preferred pick in the large-cap space,” the brokerage firm said.

 

IT industry overview

 

The IT industry is undergoing a structural shift toward nonlinear, outcome-oriented delivery models, where growth is increasingly driven by platforms, intellectual property and AI-enabled services rather than linear headcount expansion. 

 

Engineering and R&D Services (ER&D) services are being reshaped by AI-led product engineering and software-defined capabilities, while the integration of AI into physical environments is further expanding the scope of technology services into industrial and operational domains. At the same time, scaling AI adoption introduces new considerations, including infrastructure constraints, data governance, regulatory requirements and the need for trust, transparency and audit ability in AI-driven processes, HCL Technologies said in its FY26 annual report.

 

As a result, enterprise clients are increasingly seeking partners capable of delivering full-stack solutions across the AI lifecycle from data and platforms to deployment, orchestration and governance, the company said.  ====================================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.