HCL Tech share price edges higher ahead of Q1 results 2026. Should you buy or sell?

HCL Technologies share price surged as much as 0.61% in Monday's trading session ahead of the company's financial results for the quarter ending on 30 June, 2026 announcement.

The IT stock opened at ₹1,162 apiece today, as compared to previous close of ₹1,164 on Friday. The stock touched an intraday high of ₹1,183 on 13 July.

Brokerage firm Axis Securities expects HCL Tech's revenue growth of 3.5% QoQ, impacted by headwinds in client-specific accounts and seasonal weakness in the software business, partially offset by the benefit of rupee depreciation.

“EBIT margins are expected to decline by 40 bps QoQ due to restructuring costs and higher investments. Key monitorables include a) management outlook on the Services and ERD businesses, b) software business performance, c) deal pipeline, and d) FY27 revenue guidance,” the firm said in a note.

Meanwhile, Seema Srivastava, Senior Research Analyst at SMC Global Securities, believes that the company is expected to report a relatively soft performance for the quarter, with revenue likely to decline marginally on a sequential basis amid continued weakness in discretionary technology spending, slower client decision-making and persistent macroeconomic uncertainty across key global markets.

“Services revenue is expected to remain under pressure, although steady execution of long-term digital transformation programmes should provide some support. Margins, however, are likely to improve sequentially, aided by favourable currency movements, higher utilisation, productivity initiatives and tighter cost controls, partially offset by annual wage revisions and continued investments in AI capabilities,” Srivastava said.

According to Srivastava, investors will closely watch the pace of AI-led deal conversions, the strength of the order pipeline across key verticals such as BFSI, telecom and manufacturing, pricing trends and signs of recovery in discretionary spending.

“The market will also focus on the contribution from recently announced AI transformation engagements with clients including Neste and Nokia, while the strategic investment in Sarvam AI and the acquisition of Finergic Solutions are expected to strengthen HCLTech's capabilities in generative AI, wealth management and digital banking. Management's commentary on GenAI monetisation, integration of recent acquisitions, margin sustainability, client spending outlook for the second half of FY27, and demand trends across the infrastructure, engineering, software and HCLSoftware businesses will remain key monitorables,” she added.

Harshal Dasani, Business Head – INVasset PMS, said that the risk-reward does not favour chasing HCLTech ahead of its Q1 results. The company remains one of the stronger large-cap IT franchises with healthy execution, a resilient balance sheet and improving AI capabilities, but the near-term earnings setup appears mixed.

“If management delivers stable guidance with confidence around execution and improving client spending, the long-term investment case remains constructive. Until then, a staggered approach after the results offers a more favourable risk-reward than taking an aggressive pre-result position,” Dasani said.

Meanwhile, Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, recommended investors investors should avoid taking fresh positions ahead of earnings announcements, as quarterly results often trigger sharp price swings for IT stocks.

“It is better to wait for the results, assess the management's commentary on deal wins, demand outlook and margin guidance, and then consider buying. Entering after earnings offers greater clarity and helps reduce the risk associated with event-driven volatility,” Ojha said.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions. ...