HCLTech Q2 profit up 21%; constant-currency growth 2.6%

HCL Technologies Limited reported Q2 FY27 consolidated net profit of Rs 5,132 crore, up 21.2 percent YoY, on revenue of Rs 35,620 crore, up 11.5 percent. Constant-currency revenue grew 2.6 percent YoY. The board declared an interim dividend of Rs 12 a share. Q2 FY27 numbers (consolidated, board meeting 12 October): Net profit: Rs 5,132 crore, up 21.2 percent from Rs 4,236 crore Revenue: Rs 35,620 crore, up 11.5 percent YoY; constant currency up 2.6 percent EBIT margin: 18.2 percent, up 71 basis points YoY and 131 basis points QoQ New bookings: $3.258 billion, up 27 percent YoY Most of the reported growth is currency. The FY27 guide is 2.5 to 4 percent constant currency per Kotak Neo; my 11 October post used the July range of 1 to 4 percent. I have not reconciled them. HCL Technologies [][***** closed at Rs 1,314.78 on 14 October on StockGro (NSE Rs 1,327.00). On 13 October the NSE stock was up 7.7 percent at 3:06 PM. It is 28.8 percent above the 52-week low of Rs 1,030.00. At 19.5 to 19.6 times trailing earnings, it sits at the sector P/E. My view: hold for holders, no fresh money yet. My 11 October gate needed constant-currency growth at or above the top of the guide, which is 4 percent. It came in at 2.6 percent, so the gate is not met. Margin passed: 18.2 percent against the 16.9 percent I set. The 7.7 percent move on 13 October has priced the margin, so I want growth above the guide top before adding. Without that, no fresh money. My exit is a close below Rs 1,176.90, the 8 October NSE close from my 11 October post. I watch the 16 October record date. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.