Brokerages Split Post Q2 as Nomura Sees ₹1,330 Target While CLSA, HSBC Advise Caution

Following the announcement of HCL Technologies' second-quarter earnings, leading international brokerage firms have released a mixed set of investment notes, offering divergent outlooks on the IT major's valuation multiples, constant-currency revenue trajectory, and expanding artificial intelligence portfolio. While the Noida-headquartered tech giant maintained its financial forecast for fiscal 2027 and demonstrated accelerating momentum across advanced digital services, analyst consensus on Dalal Street remains split between aggressive accumulation and cautious observation. Target price projections now span a wide corridor ranging from CLSA’s conservative ₹1,094 to Nomura’s optimistic ₹1,330 per share, as equity research desks evaluate the long-term earnings durability of recent mega-deal wins and enterprise AI integrations against prevailing macroeconomic crosscurrents.

Nomura Stays Bullish with ₹1,330 Target on Steady AI Gains and Margin Recovery

Leading the bullish camp, Japanese brokerage Nomura has reaffirmed its high-conviction 'Buy' rating on HCL Tech, pinning a target price of ₹1,330 per share on the counter. The brokerage highlighted that the company's core services division delivered robust operating performance during the second quarter of FY2027, complemented by a steady, visible ramp-up in artificial intelligence revenues. With management maintaining its guidance parameters for the full fiscal year, Nomura expects operating margins to progressively normalize through FY2027 and FY2028 as utilization rates stabilize and higher-value digital architectures gain scale. Backing its constructive stance on the company's business model, Nomura has upgraded its earnings per share (EPS) estimates by 2 to 3 percent for both fiscal years 2027 and 2028, citing the sustained expansion of specialized client contracts as a key structural growth catalyst.

Valuation Strains and Lower-Band Growth: Why HSBC and CLSA Recommend 'Hold'

Taking a more measured stance, HSBC has maintained a 'Hold' recommendation on the stock with a revised target price of ₹1,225 per share, noting that while the second-quarter numbers were broadly in line with expectations and guidance remained intact, the sustainability of recent demand upticks remains uncertain. HSBC observed that management reported improving ground demand in recent weeks, yet cautioned that the stock's elevated valuation multiple relative to industry peers appears difficult to justify given its moderate margin profile and lack of aggressive top-line outperformance. In parallel, global brokerage CLSA retained its 'Hold' rating with a target price of ₹1,094 per share. While acknowledging that HCL Tech beat operational estimates—with EBITDA and EPS exceeding projections by 4 percent and 6 percent respectively, alongside a healthy order book that prompted a 2 percent EPS upgrade for FY2027—CLSA pointed out that its projected 3 percent constant-currency revenue growth sits uncomfortably near the lower threshold of the guided band, prompting the firm to advise investors to hold existing positions rather than enter fresh long commitments.