HCL Technologies Q2 Preview: Profit, revenue likely to rise on deal ramp-ups, stable margins

HCL Tech Q2  Results Preview: HCL Technologies is expected to post a sequential rise in both revenue and profit for the September quarter (Q2 FY26), supported by strong deal ramp-ups and easing restructuring costs as per Zee Business estimates. The IT major will announce its quarterly earnings on Monday, October 13.

Shares of HCL Technologies were trading marginally higher at Rs 1493.70, up 0.48 per cent on Friday.

Margins, revenue expected to firm up

Zee Business research team estimates suggest a modest sequential uptick in both revenue and profit. According to Zee Business, consolidated revenue is expected to come in at around Rs 31,518 crore, up 3.9 per cent from Rs 30,349 crore in the previous quarter.

In dollar terms, revenue may edge up 1.7 per cent to $3.61 billion. Net profit, meanwhile, could rise 11.7 per cent quarter-on-quarter to Rs 4,292 crore.

Operating profit (EBIT) is pegged at Rs 5,367 crore, implying an 8.6 per cent growth. Margins are expected to improve to 17.03 per cent from 16.3 per cent, helped by better utilisation and lower one-off costs.

Healthy pipeline keeps sentiment upbeat

According to Zee Business, the Deal momentum is likely to remain strong, with total contract value (TCV) for new deals estimated between $250 million and $300 million. Analysts at Zee Business expect constant currency revenue growth of about 1.5 per cent, broadly in line with the sector’s trend.

HCL Technologies is likely to remain committed to its FY26 guidance of 3–5 per cent revenue growth and 17–18 per cent EBIT margin.

What will the Street focus on

In Q1, HCL Tech had posted a net profit of Rs 3,843 crore and revenue of Rs 30,349 crore, with performance hurt by seasonal softness and project delays. 

Key triggers are likely to be growth in BFSI, manufacturing, and healthcare verticals. The management commentary will be awaited by investors.