HCL Infosystems Limited (HCL.INSYS) AI Stock Analysis

• Market Cap: ₹4.98B
• Dividend Yield: N/A
• Average Volume (3M): 45.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.02
• Revenue Growth: -22.96%
• EPS Growth: 28.55%
• Country: IN
• Employees: 147
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): -0.17
• Shares Outstanding: 329,209,930
• 10 Day Avg. Volume: 42,093
• 30 Day Avg. Volume: 45,114
• PEG Ratio: -0.58
• Price to Book (P/B): -1.40
• Price to Sales (P/S): 16.51
• P/FCF Ratio: -14.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: ₹14.50 ▼(-4.16% Downside)

The overall stock score of 40 reflects significant financial challenges, including declining revenues, negative profitability, and a heavily leveraged balance sheet. Technical analysis indicates mixed signals with a lack of strong momentum. Valuation metrics are unfavorable due to a negative P/E ratio and absence of dividends. These factors collectively suggest a high-risk investment with substantial financial instability.

HCL Infosystems Limited Business Overview & Revenue Model

Company Description

HCL Infosystems Limited sells computer hardware and mobile handsets to enterprises and consumers primarily in India. It operates through four segments: Hardware Products & Solution, Learning, Services, and distribution. The Hardware Products and Solutions segment sells IT products and solutions to enterprise and government customers. The Services segment provides IT infrastructure managed, multi-vendor technical support, application management, business, and support services. The Learning segment offers training services; and sells educational digital content and related hardware offerings for private schools, colleges, and other education institutes, as well as vocational training. The Distribution segment distributes consumer products, including telecommunication products, digital lifestyle products, and consumer electronic and home appliances; and enterprise products, such as IT products, enterprise software, and office automation products. The company was founded in 1976 and is based in Noida, India.

How the Company Makes Money

HCL Infosystems generates revenue primarily through its diverse portfolio of services and products. The company's key revenue streams include system integration services, which involve designing and implementing IT solutions tailored for clients, and IT infrastructure management services that help businesses manage their IT resources efficiently. Additionally, the company earns income from the distribution of technology products, where it acts as a reseller for various leading technology brands. Significant partnerships with global technology firms enhance its offerings and market reach, contributing to its earnings. The company also benefits from long-term contracts with government and corporate clients, providing a steady source of revenue.

HCL Infosystems Limited Financial Statement Overview

Summary

HCL Infosystems Limited is facing significant financial challenges, with declining revenues, negative profitability margins, and a heavily leveraged balance sheet. The company's financial health is compromised by continuous losses and negative equity, posing substantial risks to solvency and liquidity. While there are marginal improvements in gross profit margins, the overall financial trajectory is concerning, necessitating strategic restructuring and financial stabilization efforts to mitigate risks.

Income Statement

HCL Infosystems Limited has experienced a significant decline in revenue over the past few years, with a sharp drop from 18.15 billion to 246 million by 2025. The gross profit margin is relatively high at 72% for 2025, indicating effective cost of goods sold management. However, the net profit margin is negative, reflecting ongoing net losses. EBIT and EBITDA margins are also deeply negative, illustrating operational challenges. The revenue growth rate has been negative, indicating a declining sales trajectory, which poses a significant concern for future profitability.

Balance Sheet

The company exhibits a highly leveraged balance sheet with a negative stockholders' equity of -2.91 billion as of 2025, indicating liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity, but substantial debts highlight financial risks. Return on Equity (ROE) cannot be calculated with negative equity, and the equity ratio is negative, signifying an alarming financial position. The high level of debt relative to assets suggests potential solvency issues.

Cash Flow

Cash flows have been under pressure, with negative operating cash flow of -282 million in 2025, indicating operational cash generation challenges. Free cash flow has also been negative, with a decline from previous years, reflecting issues in cash management. The operating cash flow to net income and free cash flow to net income ratios are negative, suggesting inefficiencies in converting income into cash. However, some positive cash flow from investing activities offers slight relief.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	241.70M	246.10M	321.73M	314.10M	694.40M	3.53B
Gross Profit	157.70M	177.20M	188.77M	-82.40M	-44.70M	283.00M
EBITDA	-209.00M	-204.70M	-137.14M	-367.56M	429.80M	-1.35B
Net Income	-214.90M	-211.10M	-158.74M	-387.94M	245.20M	-1.97B
Balance Sheet
Total Assets	0.00	4.33B	4.56B	5.06B	4.91B	6.49B
Cash, Cash Equivalents and Short-Term Investments	2.01B	2.01B	1.42B	2.25B	1.60B	391.30M
Total Debt	0.00	3.55B	3.55B	3.55B	4.14B	5.38B
Total Liabilities	2.91B	7.24B	7.25B	7.59B	7.06B	8.89B
Stockholders Equity	-2.91B	-2.91B	-2.69B	-2.53B	-2.15B	-2.40B
Cash Flow
Free Cash Flow	0.00	-285.10M	-363.69M	731.37M	1.00B	-151.70M
Operating Cash Flow	0.00	-282.10M	-361.79M	735.62M	1.01B	-147.50M
Investing Cash Flow	0.00	229.00M	307.79M	-152.02M	207.80M	204.40M
Financing Cash Flow	0.00	-1.70M	-3.73M	-618.85M	-1.39B	-221.70M

HCL Infosystems Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HCL.INSYS, the sentiment is Negative. The current price of 15.13 is below the 20-day moving average (MA) of 15.18, below the 50-day MA of 15.36, and below the 200-day MA of 15.15, indicating a bearish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 47.24 is Neutral, neither overbought nor oversold. The STOCH value of 52.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HCL.INSYS.

HCL Infosystems Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCI	68 Neutral	₹4.04B	22.64	―	―	20.57%	10.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.66B	10.36	―	―	-1.07%	187.83%
DIGISPICE	48 Neutral	₹6.09B	-16.58	―	―	5.39%	-195.84%
HCL.INSYS	40 Underperform	₹4.98B	-26.01	―	―	-22.96%	28.55%