HCL Tech Q1FY27 results: Revenue and net profit likely to remain flat; check key technical levels

HCL Tech will announce its first quarter earnings on Monday, July 13. After decent Q1 earnings from TCS, investors are now looking forward to HCL Tech results for a turnaround.

As per experts, HCL Tech Q1 revenue could increase by 13 to 15% on a year-on-year basis and may range between ₹34,250 and ₹34,550 crore. On a sequential basis, revenue could rise by 1 to 3% amid tailwinds from rupee depreciation. The company registered revenues of ₹33,981 crore in Q4FY26 and ₹30,349 crore in the June quarter last year.

Meanwhile, its net profit could increase by 15 to 17% on a yearly basis to range between ₹4,450 and ₹4,570 crore. However, sequentially, net profit could remain flat. The company reported net profit of ₹4,488 crore in Q4FY26 and ₹3,843 crore in the June quarter last year. The EBIT margin is likely to improve during the quarter by 10 to 30 basis points to 16.5 to 16.9%.

Investors will closely monitor the company’s revenue and margin guidance for FY27, new deal wins during the June quarter, and management commentary on discretionary spending and the overall demand outlook amid global economic uncertainties.

Ahead of the Q1 result announcement, HCL Tech shares are trading over 2% higher at ₹1,185 apiece on the NSE with a day high of ₹1,189.9. So far this year, HCL Tech shares are down 28%.

Technical outlook

HCL Tech is showing signs of a short-term recovery after rebounding from the ₹1,030 support zone. The stock has moved above its 20-day EMA and is now approaching the 50-day EMA around ₹1,176. RSI has also improved to nearly 55, indicating strengthening momentum without entering the overbought zone. However, the stock is facing immediate resistance around ₹1,175–₹1,192, where the 50-day EMA and the recent swing high coincide.

A sustained close above ₹1,192 could confirm a breakout and open the way towards ₹1,257. Until that happens, the stock may remain range-bound between ₹1,115 and ₹1,192. On the downside, ₹1,115 is the key immediate support.

Options outlook

Open interest data for the 28 July expiry indicates a significant accumulation of call options at the 1,200 strike. This suggests that traders anticipate resistance around this zone consolidation around this zone. Meanwhile, the put base was seen at 1,100 strike, hinting at support for HCL Tech around this zone.

As of July 10, HCL Tech’s ATM strike for January expiry is at 1,160, with both the call and put options priced at ₹70. This suggests that traders are expecting a price movement of ±6% ahead of the expiry. However, let's take a look at HCL Tech's historical price behaviour during past earnings announcements to make more informed trading decisions.

Options strategy and approach

The options market is currently pricing in a potential move of ±6% for HCL Technologies ahead of the July expiry. This indicates that traders can structure their strategies based on whether they anticipate a breakout or consolidation around this implied move.

If expecting a volatile move (up or down), consider a Long Straddle strategy. It involves buying both an at-the-money (ATM) Call and Put option of the same strike and expiry. This strategy profits when the stock moves sharply beyond the implied ±6% range in either direction. The larger the move, the higher the potential gain.

If expecting a range-bound move, then opt for a Short Straddle strategy. This involves selling both an ATM Call and put to capture time decay and a fall in volatility. This works best if the stock stays within the expected ±6% range until expiry. However, traders should manage risk actively, as sharp moves can cause losses.

Disclaimer:

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. We do not recommend any particular stock, securities, or trading strategies. The securities quoted are exemplary and not recommendatory. The stock names mentioned in this article are purely to show how to do an analysis.