HCLTech launches NVIDIA auto tool: what it means for HCL Tech stock

Published on 10/22/2026 at 10:16 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

HCLTech launched an NVIDIA auto tool on October 21, 2026. For HCL Tech stock, Q2 revenue was USD 3.724 billion and EBIT margin 18.2 percent.

AI launch and growth figures

On October 21, 2026, HCLTech launched its NVIDIA-powered V&V for Auto offering.
Q2 FY27 revenue was USD 3.724 billion, up 2.2 percent year over year.
LKP Research retained a Hold rating and INR 1,360 target on October 13, 2026.

HCL Tech, INE860A01027, Illustration mit AI erstellt.

HCL Tech (ISIN INE860A01027) reported Q2 FY27 revenue of USD 3.724 billion, up 2.2 percent year over year, according to HCLTech on October 12, 2026. On October 21, HCLTech launched an NVIDIA-powered Verification and Validation offering for automotive software-defined vehicles, according to its press release.

Three dates define the update

On October 12, 2026, HCLTech reported Q2 FY27 revenue of USD 3.724 billion and an EBIT margin of 18.2 percent. On October 13, 2026, LKP Research retained a Hold rating and an INR 1,360 target, according to Moneycontrol. On October 21, 2026, the company launched its NVIDIA-powered automotive validation solution.

What does the launch mean for growth?

The offering combines agentic AI, physical AI-powered simulation and orchestration across requirements, test creation, execution, analysis and compliance evidence. HCLTech said the system is designed to expand scenario coverage and reduce reliance on physical testing for automotive manufacturers and Tier 1 suppliers.

The launch fits a broader AI expansion already visible in the September quarter. Advanced AI revenue reached USD 219 million in Q2 FY27, up 78.0 percent year over year in constant currency, while new deal wins totaled USD 3.258 billion. The same quarter brought a 131-basis-point sequential expansion in EBIT margin to 18.2 percent, although the reported margin included restructuring costs of 84 basis points.

Analyst caution meets stronger margins

LKP Research described the quarter as mixed: services revenue grew 3.0 percent quarter over quarter in constant currency, while HCL Software revenue declined 5.8 percent. The brokerage said low-single-digit organic growth and AI-led deflation risks constrained earnings visibility, supporting its Hold view and unchanged INR 1,360 target dated October 13, 2026.

HCLTech raised FY27 constant-currency revenue growth guidance to 2.5 percent to 4.0 percent from 1.0 percent to 4.0 percent previously, while services guidance moved to 3.0 percent to 4.0 percent from 1.5 percent to 4.5 percent. EBIT margin guidance remained 17.5 percent to 18.5 percent, according to the October 12 investor release.

Listing and company profile

Global Banking and Finance Review identifies HCL Technologies as HCLTECH.NS on the NSE under ISIN INE860A01027. The finance-services company operates across AI, digital, engineering, cloud and software, with more than 230,000 employees across 60 countries.