HCL Tech stock: LKP Research cuts rating to Hold, keeps INR 1,360 target for HCL Tech stock

Published on 10/20/2026 at 17:47 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

EBIT margin reached 18.20 percent in the September quarter. HCL Tech stock closed at INR 1,379.90 on October 19, 2026, down 0.01 percent on NSE.

Analyst rating and trading levels

LKP Research downgraded HCL Technologies to Hold and kept its INR 1,360.00 target on October 13, 2026.
Advanced AI revenue reached USD 219.00 million in the second quarter of fiscal 2027, up 78.00 percent year over year in constant currency.
HCL Tech stock closed at INR 1,379.90 on October 19, 2026, down 0.01 percent on the NSE.

HCL Tech, INE860A01027, Illustration mit AI erstellt.

HCL Tech stock is facing a cautious analyst signal after Moneycontrol reported that LKP Research downgraded HCL Technologies from Buy to Hold in a report dated October 13, 2026, while keeping its target at INR 1,360.00. HCL Tech closed at INR 1,379.90 on the NSE on October 19, 2026, down 0.01 percent from the INR 1,380.00 prior close.

Advanced AI revenue accelerates

The more constructive operating signal came from HCLTech's second-quarter fiscal 2027 update. In its October 12, 2026 investor release, HCLTech reported Advanced AI revenue of USD 219.00 million, up 78.00 percent year over year in constant currency and 28.40 percent quarter over quarter. The figure gives the company a distinct growth pocket while broader revenue growth remained more moderate.

The same second-quarter release showed USD 3.72 billion of revenue, up 2.00 percent quarter over quarter and 2.20 percent year over year. EBIT margin reached 18.20 percent, an increase of 131 basis points quarter over quarter, while the company retained fiscal 2027 constant-currency revenue growth guidance of 2.50 percent to 4.00 percent.

Stock stays below its yearly high

On October 19, 2026, the NSE session produced a range of INR 1,359.00 to INR 1,399.50, with volume of 3,992,586 shares. The close stood 22.48 percent below the 52-week high of INR 1,780.10 and 33.97 percent above the 52-week low of INR 1,030.00. HCL Technologies was down 15.58 percent year to date on the same NSE data.

Valuation and next reporting date

The price-to-earnings ratio was 20.41 on October 19, 2026, alongside a market capitalization of INR 3.7 trillion. HCLTech also reported an INR 12.00 per-share dividend with its second-quarter results on October 12, 2026. The NSE page lists October 28, 2026 as the next reporting date for HCL Technologies.

What the target says about valuation

LKP Research's unchanged INR 1,360.00 target sits 1.44 percent below the October 19 closing price, a narrow gap that explains the Hold stance even as the analyst noted stronger services growth and better margins. The report also identified weaker software performance and low-single-digit organic growth as constraints on earnings visibility.

Trading level in India

HCL Tech closed at INR 1,379.90 on the NSE on October 19, 2026 at 3:29 p.m. IST, down 0.01 percent versus the NSE close of October 16, 2026 at INR 1,380.00. Its next scheduled reporting date is October 28, 2026.