HCL Tech: Despite strong deal wins, risk-reward remains unfavourable

HCL Technologies reported Q1FY27 results marginally ahead of consensus on EBIT margin at 16.9%, up 40 bps sequentially, with record Q1 deal wins of $2.41 billion in total contract value. Despite the better-than-expected quarterly performance, the company retained its FY27 revenue growth guidance at 1-4%, citing unchanged macro conditions and headwinds at two key telecom accounts. Analysts flagged AI-driven revenue deflation risks of 2-3% across the portfolio and the planned Rs 35,000 crore AI data centre investment as concerns, noting HCL stock is down 27% year-to-date in 2026 and trades at a premium to peers TCS and Infosys.