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.
However, despite recovery from lows, the Nifty IT index underperformed the market by falling 22 per cent, as against a 7.2 per cent decline in the Nifty 50 thus far in CY2026.
HCL Tech reported a 20.3 per cent increase in net profit for the first quarter to ₹4,624 crore on a year-on-year basis. Revenue for the quarter was up 13.9 per cent to ₹34,579 crore.
HCL Tech Q1 results expectation: HCL Technologies will post its Q1FY27 results on July 13 after market hours. The company's board will also consider second interim dividend.
At 09:38 AM on Friday, the Nifty IT index was the top gainer among sectoral indices, up 1.8 per cent, as compared to a 1 per cent rise in the Nifty 50.
This large-deal win reinforces HCL Tech's strong positioning in AI-led infrastructure and workplace transformation services, while significantly enhancing long-term revenue visibility, analysts say.
The Nifty IT currently quotes around 20 per cent below its 200-DMA. TCS, Infosys, Wipro and HCL Technologies are down in the range of 21-26 per cent form respective 200-DMAs.
As per data, the Nifty IT Index has corrected nearly 42 per cent from its all-time high of 46,089, recorded in December 2024, and is now trading close to its April 2023 lows.
HCL Tech is investing $150 million in Sarvam for a 10.46 per cent stake
Hitesh Rathi, technical analyst at Angel One says that IT stocks continue to trade with a negative bias on the charts, and are prone to further fall if they dip below the crucial support zones.
In 2026 so far, TCS, Infosys, HCL Tech, Tech Mahindra, and Wipro have declined in the range of 17 per cent to 33 per cent. In comparison, the Nifty 50 index has dived 10 per cent, data showed.
Analysts believe HCL Technology's softer revenue guidance versus expectations and an AI deflation impact of 3-5% will likely raise concerns about overall industry growth for FY27.
Anand James, chief market strategist at Geojit Investments highlights that Infosys and HCL Technologies look weak on charts as both were trading below March lows and the lower-end of Bollinger Bands.
Technical charts show that Nifty and its 12 stocks including Infosys, Reliance, Bharti Airtel, Asian Paints, HCL Tech and Bajaj Finance saw their 50-DMA slip below 200-DMA amid March market crash.
The global research and broking house has cut their earnings estimates by 1-4 per cent across IT firms and expects 6 per cent earnings CAGR over FY26-28.
Improved policy optics could encourage US enterprises to advance discretionary tech spending and GCC expansion, even though immediate revenue or margin acceleration for IT firms is unlikely.
Budget 2026 has proposed a tax holiday till 2047 for IT companies providing cloud services using India-based data centres.
Kunal Kamble, technical analyst at Bonanza decodes trading strategies in IT stocks - Infosys, TCS, HCL Technologies, L&T Technology Services and Tata Elxsi post Q3 earnings. Here's what expert says.
Analysts expect margin to improve, supported by favourable seasonality in the products business, AI-led productivity gains and the benefit of a weaker rupee
Tech companies are, typically, at an advantage when the Indian Rupee depreciates against the Dollar