HCL Tech Q2 Results Preview: Will Shiv Nadar's Tech Giant Beat TCS In Q2FY26? Watch Out For Dividend Reward

The share price of Shiv Nadar's HCL Technologies is trading volatile on Indian market ahead of its Q2FY26 results scheduled on October 13. In Q2, ramped up deals are likely to drive HCL Tech's revenue steady. Investors focus will be on HCL's management commentary, FY26 guidance and H-1B visa fees impact on the growth ahead. Also, its board of directors will consider the proposal for third interim dividend announcement for FY26.

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Ahead of Q2, HCL's share price is trading at Rs 1484.40 apiece on BSE, down by 0.7% with market cap of Rs 4,02,816.45 crore. The stock opened mildly lower to Rs 1491.80 from the previous session's Rs 1494.70. The stock touched an intraday high and low of Rs 1493.25 apiece and Rs 1476.30 apiece respectively.

HCL's return on equity is strong at 34.81%.

HCL Technologies Q2FY26 Preview:

"We forecast 1.7% qoq growth, driven by mega-deal ramp in engineering services. Growth will be led by the services business (1.8% qoq), while the products business' growth at 0.8% qoq will be marginal. We forecast an underlying EBIT margin increase of 70 bps qoq to 17%. EBIT margin is after 50 bps of restructuring charge," said analysts at Kotak Institutional Equities in their Q2FY26 preview.

Analysts expect healthy TCV of deal wins in the US$2.5-3 bn range. HCLT closed two large deals that management hoped for and communicated in its 1QFY26 earnings call.

Further, they said, "We expect the company to retain 3-5% revenue growth guidance for FY2026, along with 17-18% EBIT margin guidance."

Along the similar lines, analysts at Centrum expect cc revenue growth of 1.3% QoQ, led by ramping up recently signed deals. They also expect the EBIT margin to improve by 31 bps QoQ, supported by INR depreciation.

Further, analysts at Axis Securities said, "We expect HCL Tech to report revenue growth of 3% QoQ, led by BFSI and Hi-tech, while the service business is expected to remain weak. Operating margins are expected to expand by 87 bps QoQ. Key factors to monitor include a) Deal TCV/pipeline, b) ER&D and service business, and c) GenAI adoption."

HCL Technologies reported a decline of 10.8% QoQ and 9.7% YoY in consolidated net profit to Rs 3,843 crore for the quarter ending June 2025 period. However, revenue came in at Rs 30,349 crore, registering a growth of 0.3% QoQ and 8.2% YoY. HCL has increased its FY26 revenue growth guidance.

During Q1FY26, HCL Tech gave guidance that revenue growth could be in the range of 3.0% - 5.0% YoY in CC for FY26. Services Revenue growth expected to be between 3.0% - 5.0% YoY in CC. While the EBIT margin is expected to be between 17.0% - 18.0%.

Key Factors To Focus On HCL Tech's Q2 Results:

Kotak analysts expect investor focus on (1) the path of margin recovery to the 18-19% band; (2) the impact of reciprocal tariffs imposed by the US on directly impacted segments of manufacturing and retail; (3) profitability in cost takeout and vendor consolidation deals; (4) the state of discretionary spending; (5) the pace of enterprise GenAI adoption, new opportunities consequent to AI adoption and the likely deflationary impact; and (6) the underlying environment for growth to accelerate to high-single digits.

HCL Technologies Interim Dividend

The IT player has proposed the payment of third interim dividend for the financial year 2025-26. The board of directors will likely declare the interim dividend amount, record date and payment date on October 13.

Earlier, HCL has delivered first and second interim dividend of Rs 18 and Rs 12 per share for FY26.

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