LKP Research has issued a bullish recommendation on HCL Technologies, assigning a buy rating with a target price of ₹1,380 in its research report dated July 14, 2026. According to the research report, the brokerage has revised its target price upward while maintaining its positive stance on the IT services company.
HCL Technologies Ltd delivered a better-than-expected Q1FY27 performance with revenue of USD 3.65 billion, declining 0.5% QoQ in constant currency due to seasonal productivity commitments but growing 2.6% YoY in constant currency. As reported by LKP Research, the growth was primarily driven by the Retail & CPG segment (+5.0% QoQ) and Financial Services (+2.2% QoQ), while the Telecom segment (-8.7% QoQ) remained under pressure amid continued discretionary spending cuts.
The company demonstrated strong margin expansion during the quarter. According to LKP Research, EBIT margin expanded 40 basis points QoQ to 16.9%, while the adjusted EBIT margin stood at 17.5%, excluding restructuring costs. This margin improvement reflects the company's operational efficiency and cost management initiatives during the quarter.
Despite positive research recommendations, HCL Tech shares fell up to 4.42% on Tuesday as broader market sentiment was impacted by geopolitical tensions and commodity price movements. The Indian rupee breached the 96 level against the US dollar, declining 0.55% to 96.20 as Brent crude oil prices rose above $86 per barrel following fresh comments by US President Donald Trump on Iran and the Strait of Hormuz. As per Jateen Trivedi, VP Research Analyst at LKP Securities, the rupee weakness was driven by Brent crude above $86 significantly increasing pressure on India's import bill, with the rupee expected to trade in the 95.75-96.50 range in the near term. The broader market also ended in the red, with the Nifty Midcap 100 falling 0.6% and the Nifty Smallcap 100 declining 1%.
