HCL Tech Q2: Revenue, net profit may rise in double digits; key focus on guidance, deal win and interim dividend

HCL Tech will announce its second-quarter earnings on Monday, October 12. After decent Q2 earnings from TCS, investors are now looking forward to HCL Tech results for upbeat earnings. HCL Tech results are likely to be announced after market hours on Monday.

As per experts, HCL Tech Q2 revenue could increase by 15% to 16% on a year-on-year basis and may range between ₹34,900 and ₹35,300 crore. On a sequential basis, revenue could rise by 1 to 3%. HCL Tech could witness tailwinds from rupee depreciation, execution of new deals and revenue contribution from the BFSI segment. The company registered revenues of ₹34,579 crore in Q1FY27 and ₹31,942 crore in the September quarter last year.

Meanwhile, its net profit could increase by 15 to 17% on a yearly basis to range between ₹4,850 to ₹4,910 crore. Sequentially, net profit could rise by 4% to 6%. The company reported net profit of ₹4,624 crore in Q1FY27 and ₹4,235 crore in the September quarter last year. The EBIT margin is likely to improve during the quarter by 20 to 40 basis points to 16.9 to 17.2%.

Investors will closely monitor the company’s revenue and margin guidance for FY27, new deal wins during the September quarter, especially acquisitions of HPE's Telco Solutions business and Jaspersoft. Management commentary on discretionary spending and the overall demand outlook amid global economic uncertainties will also be important. Investors will also be looking forward to the interim dividend announcement.

Ahead of the Q2 result announcement, HCL Tech shares are trading 3.3% higher at ₹1,216 on Monday, October 12. So far this year, HCL Tech shares are down over 25%

Technical outlook ahead of Q2 results

HCL Tech enters its results week on a strong note. On Friday, the stock rose 3.4% and recovered from the ₹1,173 support zone, which it had tested in the previous two sessions. Friday’s gain more than made up for the losses of those two sessions.

The bigger picture, however, has not changed yet. The stock has been making lower highs since early September. The 20-day EMA has been below the 50-day EMA since mid-September, and the stock is still trading below both. This makes ₹1,234 to ₹1,254 the first hurdle for any recovery. The ADX is at 16.2, below 20, which means the current trend is weak.

HCL Tech options: expected move ahead of Q2 results

The options market expects a move of about ±6.3% in HCL Tech by the October 27 expiry. With futures at ₹1,212, the at-the-money call is priced at ₹40.8 and the put at ₹35.7, a combined ₹76.5. That puts the expected range at roughly ₹1,136 to ₹1,289.

This range matches the key levels on the chart closely. The lower end is just above the ₹1,120 zone the stock could slip to if ₹1,173 breaks. The upper end is just below ₹1,300, the first target if the stock moves above its 50-day EMA. In other words, the options market is pricing a move from one chart level to the next, not a move beyond them.

HCL Tech shares have reacted sharply to the last two results. The stock fell 10.8% the day after its Q4FY26 results and 4.4% after its Q1FY27 results. The moves have been even bigger over the following days. In four of the last eight quarters, the stock moved more than 6.3% within 10 days of its results.

Options strategy for HCL Tech Q2 results

If you expect a big move after the results. A long straddle, buying the ATM call and put, could be considered. The strategy is in profit if HCL Tech moves beyond roughly ₹1,135 on the downside or ₹1,290 on the upside by expiry. However, option premiums usually fall the morning after the results, so the stock needs to move quickly for this strategy to work.

If you expect the stock to stay in a range, a short straddle, selling the ATM call and put, aims to benefit from the drop in volatility after the results. The strategy makes profit if the stock stays within roughly ₹1,135 to ₹1,290 until expiry. HCL Tech’s last two results caused sharp falls, so this trade carries high risk and needs strict stop-losses. Traders may prefer to exit soon after volatility falls rather than hold until expiry.

Meanwhile, traders looking for a move in one direction can wait for the stock to break out of its current range before taking a position. If HCL Tech closes above the 50-day EMA at ₹1,254, a bull put spread could be considered. If it closes below the ₹1,173 support, a bear call spread may be more suitable.