HCLTech Ltd.'s second-quarter revenue and operating income met estimates, with analysts largely bullish on the stock.

The management revised service revenue guidance to 4–5% (from 3–5%) while EBIT and revenue guidance were maintained.

The company net added employees, and attrition fell to 12.6%.

The company expressed confidence in AI-led growth and noted that over $100 million in revenue came from advanced AI, with nearly all Q2 deals including AI.

Out of the 47 analysts tracking HCLTech, 21 have a 'buy' rating on the stock, 19 recommend a 'hold', and seven suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets is Rs 1,623, which implies a potential upside of 9%.

Macquarie has the highest price target of Rs 1,980, followed by Antique Stock Broking (Rs 1,775) and Phillip Securities (Rs 1,770).

CLSA

• Reiterate 'Outperform' with price target cut to Rs 1,660 from Rs 1,663.

• Continues to focus on an asset-light business model, in contrast to TCS.

• 3-5% FY26 guidance band intact due to weakness in the software business.

• Re-rating from current levels depends on the EBIT margin recovering.

• Restructuring and Al to be overall revenue accretive.

• Seeing significant scope for existing revenue cannibalisation due to Al.

Nuvama

• Maintain 'Hold' and hike price target to Rs 1,650 from Rs 1,630 earlier.

• Valuations comparable to those of TCS and Infosys, hence limited upside potential.

• Sequential broad-based growth with improved margins.

• Strong client interest with AI force now deployed in 47 accounts (versus 35 QoQ).

• Wage hike cycle will commence in Q3 with a likely margin impact of 70–80 bps.

Motilal Oswal

• Reiterate 'buy' with a price target of Rs 1,800.

• The company is the fastest-growing in the large-cap IT services space.

• All-weather portfolio remains the best large-cap bet in an uncertain macro environment.

• Expect the company's services business to grow at 4.5% constant currency.

• Good beat on margins, but expect short-term pressure.

Emkay

• Retains 'Add' on HCLTech with a price target of Rs 1,550. 

• Benefits from Project Ascend, and a weak rupee, were partly negated by restructuring costs.

• Continued momentum in BFSI and operating performance.

• Softness is seen in software revenue.