By BullScreen Editorial Team 
HCL Technologies shares are expected to remain in focus after the company’s Q1 results 2027 came in better than market expectations. The IT major reported strong earnings, retained its full-year growth guidance, and announced a ₹3,500 crore investment in an AI data centre. Despite the positive performance, most brokerages maintained a cautious stance on the stock.
HCLTech shares had gained 5.15% ahead of the earnings announcement to close at ₹1,224. However, the stock remains down 25.1% in 2026, compared with a 7.4% decline in the Nifty 50. The company’s market capitalisation stands at around ₹3.32 lakh crore.
The Q1 results 2027 showed consolidated net profit rising 20% year-on-year to ₹4,624 crore, while revenue increased 14% to ₹34,579 crore. Operating margin improved to 16.9%, and the company maintained its FY27 constant currency revenue growth guidance of 1-4% along with an EBIT margin outlook of 17.5-18.5%. Net new deal wins reached $2.4 billion, excluding the recently announced $1.14 billion Mercedes-Benz AI infrastructure contract, while advanced AI revenue surged 62.1% to $171 million.
Brokerage opinions, however, remained divided. Citi downgraded the stock to Sell and reduced its target price to ₹1,040, citing slowing software business growth and premium valuations compared with peers such as Infosys and TCS. CLSA also lowered its rating to Hold, while Goldman Sachs and HSBC maintained Neutral/Hold views despite acknowledging healthy deal wins and improving AI opportunities.
Nomura remained the most bullish, retaining its Buy rating and increasing its target price to ₹1,290. The brokerage expects margin normalisation through FY27 and believes the planned AI data centre investment will strengthen HCLTech’s sovereign AI capabilities. While the Q1 results 2027 reinforced the company’s operational strength, analysts believe future stock performance will depend on sustained growth, AI execution, and whether premium valuations can be justified.