Should You Buy, Sell Or Hold Wipro, Tech Mahindra And HCLTech After Q1 FY27 Results?

IT stocks were in sharp focus on Friday, 17 July, with three of the sector's large-cap names moving on the back of Q1 FY27 earnings and fresh deal news. Wipro slipped as the market digested a soft quarter, Tech Mahindra rallied on strong numbers, and HCLTech advanced on a large new client win even as its own results had come in earlier in the week. Here's how each stock performed, and what the latest research view says.

Wipro

Wipro fell as much as 2.67% to ₹173.05 on the BSE in early trade on Friday after a soft Q1 FY27 print. Consolidated net profit came in at ₹3,352 crore, down 4.2% sequentially, with margins slipping 130 basis points to 16% on wage hikes and continued AI investment. The board declared an interim dividend of ₹2 per share.

Should you buy, sell or hold Wipro?

Kotak Neo Research retains a SELL rating on Wipro, with a fair value of ₹150 against a current market price of ₹178. It calls this another quarter of sequential revenue decline alongside a sharp drop in margins, with organic growth guidance for the year sitting in negative territory at -2.3% to -0.3%. Total contract value remains lackluster and does not point to a quick recovery, the report said, and the broader demand environment continues to work against the company.

The report's own estimates show revenue of $261.5 crore for the quarter, down 1.4% sequentially and 1% year-on-year in dollar terms, with the constant currency decline of 1.2% coming in slightly worse than its estimate of 1%. EBIT margin of 16% missed the estimate by 130 basis points, and adjusted net profit, down 3.8% sequentially, missed it by 7.5%. Total contract value fell 0.2% sequentially and a steep 32.2% year-on-year, with a shrinking number of large accounts pointed to as a lagging sign of Wipro losing ground. On the positive side, the Q2 FY27 guidance range came in about 50 basis points better than expected. Even so, the stock is valued at an unchanged 10x multiple rolled forward to June 2028E EPS, with weak growth prospects seen keeping it unexciting despite an inexpensive valuation of around 13x FY28E earnings.

Tech Mahindra

Tech Mahindra shares jumped as much as 3.4% to a day's high of ₹1,562.90 on the BSE on Friday after a strong Q1 FY27 show. Consolidated net profit rose 28.4% year-on-year to ₹1,465.1 crore, while revenue climbed 15% to ₹15,605.50 crore. The stock has gained around 6% over the past month.

Should you buy, sell or hold Tech Mahindra?

Kotak Neo Research has a BUY rating on Tech Mahindra with a fair value of ₹1,750. Both revenue growth and margin delivery impressed this quarter, the report said, with growth led by clients outside the top 20 accounts and strong deal win value spread broadly across verticals, wins seen as laying the foundation for the company to build tier-1 growth leadership. Margin, it added, has room to improve well beyond the company's own 15% target.

In constant currency terms, revenue grew 2.6% sequentially, around 160 basis points ahead of estimate, with enterprise vertical revenue up 8.6% year-on-year. EBIT margin surprised positively, rising 60 basis points sequentially and 330 basis points year-on-year to 14.4%, ahead of the 14.2% estimate. Net profit grew 8.2% sequentially and 28.4% year-on-year, a performance the report highlights as coming even after absorbing a ₹210 crore forex loss. Total contract value of $108 crore grew 33% year-on-year, marking the third straight quarter above the $100 crore mark.

HCL Tech

HCLTech shares gained 3% to ₹1,223 on the BSE on Friday after announcing a new seven-year agreement with The Guardian Life Insurance Company of America, under which it will acquire Guardian India, the insurer's global capability centre, along with close to 2,000 employees, to drive AI-led modernisation of Guardian's technology and operations. The news follows HCLTech's own Q1 FY27 results earlier in the week, where net profit rose 20% year-on-year to ₹4,624 crore on 13% revenue growth to ₹34,579 crore. Despite the steady results, HCLTech shares remain down over 27% for 2026.

Should you buy, sell or hold HCL Tech?

Kotak Neo Research has a REDUCE rating on HCLTech, with an unchanged fair value of ₹1,200 against a current market price of ₹1,187. It sees deal momentum gathering pace, pointing to the new Guardian agreement as a large global capability centre takeover, a net-new, seven-year deal that will ramp up immediately and is already factored into the FY27E revenue outlook, with the potential to be fairly profitable. The deal is expected to add around 30 basis points of incremental revenue in FY27E, the report noted, while also flagging that the Guardian GCC's revenue productivity per employee of roughly $32,000 could point to sub-optimal utilisation and a heavy mix of support-function resources, seen as an early lever for margin improvement, alongside annual rental obligations that run at about 6% of revenue.

Recent large and mega deal announcements are also seen setting up solid deal wins for the September quarter, with HCLTech's track record of tight execution on large engagements called out as a source of comfort. On the downside, the report notes that constant currency revenue actually declined 0.7% sequentially in Q1 FY27. The stock is valued at an unchanged 15x multiple on June 2028E EPS, and is seen trading at full valuations of around 15x FY28E earnings, a roughly 14% premium to TCS

Also Read - Tech Mahindra Q1 FY27 Results: Net Profit Rises 28.4%, Revenue Surges 17.6%; EBIT Margin Expands