Indian IT stocks staged one of their best days of the year on 13 October 2026. HCLTech reported second-quarter (Q2 FY27) results that beat expectations, its shares jumped about 5% to around ₹1,283, and the Nifty IT index climbed more than 3%, taking it back above 30,000. The broader Nifty rose about 1.6% as fear in the market eased.
HCLTech Q2 FY27 results: the key numbers
| Metric | Q2 FY27 | Change |
|---|---|---|
| Net profit | ₹5,132 crore | +21.2% YoY (from ₹4,235 cr) |
| Revenue | ₹35,620 crore | +11.5% YoY |
| Operating (EBIT) margin | 18.2% | Improved |
| Advanced AI revenue | $219 million | +78% YoY |
| New deal wins (TCV) | ~$3.2–3.3 billion | Includes a ~$1.14 bn Mercedes-Benz deal |
| Interim dividend | ₹12 per share | Record date 16 October 2026 |
Why the market liked it
- Higher guidance floor: HCLTech narrowed its FY27 revenue growth guidance to 2.5–4% in constant currency, from 1–4%. Raising the lower end signals more confidence in demand.
- AI is starting to pay: revenue from advanced AI work grew 78% to $219 million, an early sign that AI can be a growth driver rather than only a threat to traditional IT services.
- Big deal wins: a large contract from Mercedes-Benz made up roughly a third of the quarter's orders.
- Margins held up despite pricing pressure in the industry.
How other IT stocks moved
The rally spread across the sector. TCS, Infosys and Tech Mahindra gained roughly 1–4% on the day, and the Nifty IT index added over 2,000 points across two sessions. A weak rupee (near 96–97 per dollar) also helps IT companies because they earn most of their revenue in dollars and spend largely in rupees.
Not everyone is convinced
Brokerages are split. Anand Rathi upgraded the stock to Buy, while ICICI Securities kept a Reduce rating, citing volatile demand and early signs of AI-led pricing pressure. Guidance of 2.5–4% growth is still modest, and part of the rally came from a short-term unwinding of bets against Indian IT.
