HCL Technologies Limited (HCLTECH) AI Stock Analysis

• Market Cap: ₹4.51T
• Dividend Yield: 2.86%
• Average Volume (3M): 116.99K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.93
• Revenue Growth: 7.52%
• EPS Growth: 0.87%
• Country: IN
• Employees: 223,420
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 15.61
• Shares Outstanding: 2,713,665,000
• 10 Day Avg. Volume: 160,014
• 30 Day Avg. Volume: 116,991
• PEG Ratio: 2.24
• Price to Book (P/B): 5.96
• Price to Sales (P/S): 3.51
• P/FCF Ratio: 18.50
• 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: ₹1,657.50
• Price Target Upside: -0.29% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹1,777.00 ▲(6.90% Upside)

HCL Technologies' strong financial performance and bullish technical indicators are the primary drivers of its stock score. While the valuation suggests potential overvaluation, the company's robust financial health and positive market momentum support a favorable outlook. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for HCL's services, enhancing its market position and supporting long-term business stability.

Balance Sheet Health

A low debt-to-equity ratio reflects prudent financial management, providing HCL with flexibility to invest in growth opportunities and weather economic downturns.

Cash Generation Ability

Strong cash generation supports HCL's ability to reinvest in its business, pay dividends, and reduce debt, contributing to long-term financial health.

Negative Factors

Declining Gross Profit Margin

A declining gross profit margin could indicate rising costs or pricing pressures, which may affect profitability if the trend continues.

Increasing Debt Levels

Increasing debt levels, if not managed, could strain HCL's financial resources and limit its ability to invest in growth or respond to market changes.

Fluctuating Operating Cash Flow

Fluctuations in operating cash flow can impact liquidity management, potentially affecting HCL's ability to fund operations and strategic initiatives.

HCL Technologies Limited Business Overview & Revenue Model

Company Description

HCL Technologies Limited offers software development, business process outsourcing, and infrastructure management services worldwide. The company operates in three segments: IT and Business Services; Engineering and R&D Services; and Products & Platforms. The IT and Business Services segment provides IT and business services, such as application, infrastructure, and digital process operations; digital transformation services for digital and analytics; IoTWoRKs; and cloud native and cybersecurity solutions. The Engineering and R&D Services segment offers engineering services and solutions to software, embedded, mechanical, VLSI, and platform engineering that support the lifecycle of products for hardware and software industries. The Products & Platforms segment provides modernized software products for technology and industry specific requirements. This segment also offers HCL software; DRYiCE software, an organic IP-based software; Actian Avalanche Hybrid Cloud Data platform; and Nippon, a workforce analytics solution. It also offers hybrid cloud, digital workplace, and cloud native services, as well as service integration and management. The company serves financial services, manufacturing, life sciences and healthcare, public services, retail and CPG, technology and services, telecom, media, publishing, and entertainment industries. HCL Technologies Limited was founded in 1976 and is headquartered in Noida, India.

How the Company Makes Money

HCL Technologies generates revenue primarily through its IT services and solutions, which are billed on a time-and-materials or fixed-price basis. Key revenue streams include application development and maintenance, infrastructure management services, and engineering services. The company also earns income from digital transformation initiatives and consulting services. Significant partnerships with technology leaders, such as Microsoft, IBM, and Cisco, enhance HCL's service offerings and market reach, contributing to its earnings. Additionally, HCL's focus on emerging technologies, such as cloud computing and artificial intelligence, positions it to capitalize on the growing demand for digital solutions across various sectors.

HCL Technologies Limited Financial Statement Overview

Summary

HCL Technologies shows strong financial performance with consistent revenue growth, solid profitability, and efficient cash flow management. The company maintains a healthy balance sheet with low leverage and strong returns on equity. Minor concerns include a declining gross profit margin and increasing debt levels.

Income Statement

HCL Technologies has demonstrated consistent revenue growth with a TTM growth rate of 2.95%. The company maintains strong profitability with a gross profit margin of 34.72% and a net profit margin of 14.23% in the TTM. EBIT and EBITDA margins are also healthy at 18.07% and 20.69% respectively, indicating efficient operational management. However, there is a slight decline in gross profit margin over the years, which could be a point of concern if the trend continues.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.09 in the TTM, indicating prudent leverage management. The return on equity is robust at 24.41%, showcasing effective utilization of shareholder funds. The equity ratio stands at 65.66%, suggesting a solid equity base relative to total assets. However, the slight increase in total debt over the periods should be monitored.

Cash Flow

Cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 3.83% in the TTM. The operating cash flow to net income ratio is strong at 0.93, indicating good cash generation relative to net income. The free cash flow to net income ratio is also healthy at 0.94. Despite these strengths, the operating cash flow has seen some fluctuations, which could impact future liquidity if not managed carefully.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.23T	1.18T	1.11T	1.03T	871.90B	744.98B
Gross Profit	424.23B	413.06B	396.71B	376.07B	334.76B	304.95B
EBITDA	249.35B	248.27B	234.06B	217.85B	197.00B	191.61B
Net Income	170.59B	174.37B	157.98B	150.90B	137.23B	110.34B
Balance Sheet
Total Assets	1.09T	1.05T	997.15B	934.11B	892.26B	863.15B
Cash, Cash Equivalents and Short-Term Investments	299.29B	287.62B	271.72B	201.01B	189.17B	156.76B
Total Debt	67.69B	62.79B	57.66B	47.81B	63.56B	65.09B
Total Liabilities	372.93B	358.64B	315.05B	280.04B	270.89B	261.46B
Stockholders Equity	712.73B	696.10B	682.02B	654.05B	620.46B	600.08B
Cash Flow
Free Cash Flow	213.98B	224.24B	214.00B	163.48B	152.55B	177.14B
Operating Cash Flow	226.63B	235.32B	224.48B	180.09B	169.00B	196.18B
Investing Cash Flow	-39.46B	-49.14B	-67.23B	-39.31B	14.77B	-57.30B
Financing Cash Flow	-189.37B	-185.61B	-154.64B	-158.81B	-145.08B	-111.92B

HCL Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1662.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HCLTECH, the sentiment is Positive. The current price of 1662.3 is above the 20-day moving average (MA) of 1648.97, above the 50-day MA of 1624.53, and above the 200-day MA of 1551.89, indicating a bullish trend. The MACD of 3.38 indicates Positive momentum. The RSI at 56.25 is Neutral, neither overbought nor oversold. The STOCH value of 81.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HCLTECH.

HCL Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCS	80 Outperform	₹11.61T	23.48	―	3.55%	3.62%	4.43%
LTIM	78 Outperform	₹1.79T	36.79	―	1.08%	8.72%	4.54%
INFY	76 Outperform	₹6.71T	23.79	―	2.70%	7.90%	4.28%
HCLTECH	73 Outperform	₹4.51T	26.52	―	2.86%	7.52%	0.87%
WIPRO	71 Outperform	₹2.74T	20.30	―	4.05%	1.10%	14.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TECHM	55 Neutral	₹1.55T	31.20	―	2.76%	3.30%	36.78%

HCL Technologies Limited Corporate Events

HCL Technologies Sets January 12 Date for Q3 FY26 Results and Investor Call

HCL Technologies Limited has scheduled the announcement of its financial results for the third quarter of FY 2026, covering the period ended December 31, 2025, for January 12, 2026, after the close of Indian stock market trading. Following the results release, senior management will host a 60-minute audio conference call at 7:30 p.m. IST on the same day, including a detailed Q&A session for investors and analysts, with live webcast and replay facilities available; this structured communication underscores the company’s ongoing engagement with capital markets and its emphasis on transparency for stakeholders.

HCLSoftware to Acquire Jaspersoft, Bolstering Data & AI Analytics Portfolio

HCLSoftware, the software arm of Indian IT major HCLTech, has agreed to acquire Jaspersoft, the embedded analytics and pixel-perfect reporting business of Cloud Software Group, in a deal aimed at strengthening its Data & AI division, Actian. The move will add Jaspersoft’s established business intelligence and reporting platform—widely used in regulated sectors such as government, banking and financial services—to Actian’s growing metadata management, data catalog and data governance offerings, creating a more end-to-end, AI-powered data management and analytics stack. By combining Jaspersoft’s embedded analytics and high-volume reporting capabilities with Actian’s existing enterprise data management tools and large global developer community, HCLSoftware aims to accelerate customers’ adoption of agentic, self-service business intelligence and deepen its competitive positioning in the fast-evolving GenAI-driven analytics market; the transaction is expected to close within six months of signing, subject to customary conditions.

HCLSoftware to Acquire Jaspersoft to Bolster Data & AI and Embedded Analytics Offering

HCLSoftware, the software division of Indian IT services group HCLTech, has announced its intent to acquire Jaspersoft, the embedded analytics and pixel-perfect reporting business of Cloud Software Group, in a deal expected to close within six months. The acquisition will fold Jaspersoft into HCLSoftware’s Data & AI division, Actian, to strengthen its end-to-end enterprise data management capabilities and meet growing demand for metadata management, data catalog and data governance solutions. By adding Jaspersoft’s established embedded analytics and high-volume, pixel-perfect reporting tools—widely used in heavily regulated sectors such as government, banking and financial services—HCLSoftware aims to offer customers more flexible, AI-powered business intelligence that can be tightly integrated into customer-facing applications, deepening its presence in the business intelligence market and expanding its reach into a large global developer community.

HCL Technologies Closes Trading Window Ahead of December Quarter Results

HCL Technologies Limited has announced that, under its Code of Conduct on Prohibition of Insider Trading and in line with SEBI regulations, the trading window for transactions in its equity shares will be closed from the start of business on December 25, 2025. The company stated that the window will reopen 48 hours after the declaration of its financial results for the quarter and nine months ending December 31, 2025, which are scheduled to be approved on January 12, 2026, a move aimed at preventing insider trading and ensuring fair disclosure for investors and market participants.

HCLTech Again Named Leader in 2025 Gartner Magic Quadrant for Data Center Outsourcing

HCLTech, a global technology services provider specializing in AI, digital, engineering, cloud and software solutions across multiple industry verticals, has been recognized as a Leader in the 2025 Gartner Magic Quadrant for Data Center Outsourcing Services. This latest recognition, which extends the company’s decade-long leadership status in the data center outsourcing space, underscores its focus on combining infrastructure expertise with intelligent automation and AI platforms such as AIForce.Ops and AIFactory to build adaptive, cyber-resilient and efficient enterprise ecosystems, reinforcing its competitive positioning and value proposition for clients seeking future-ready, ROI-driven infrastructure transformation.

HCL Technologies to Join Citi Global IT Services Tour 2025

HCL Technologies Limited announced its participation in the Citi Global IT Services Tour 2025, scheduled to take place in Mumbai. The company clarified that no unpublished price-sensitive information will be disclosed during this investor meeting, indicating a focus on transparency and compliance with regulatory standards.

HCLTech Partners with Strategy to Enhance Global AI-Driven Data Analytics

HCL Technologies Limited has announced a strategic partnership with Strategy, the world’s largest independent publicly traded enterprise analytics company, to accelerate the global adoption of Strategy Mosaic, an AI-powered Universal Semantic Layer. This collaboration aims to enhance the deployment of Strategy Mosaic for global enterprise clients by leveraging HCLTech’s consulting services and AI technology expertise, alongside Strategy’s engineering team, to offer scalable solutions for complex data environments. The partnership underscores a shared commitment to providing flexible, enterprise-grade, AI-ready analytics solutions, enabling enterprises to unlock the full potential of their data.

HCL Technologies Appoints New Independent Director

HCL Technologies Limited announced the approval of a special resolution to appoint Mr. Amitabh Kant as an Independent Director, following a successful postal ballot through remote e-voting. This strategic appointment is expected to enhance the company’s governance and strengthen its leadership, potentially impacting its market positioning positively.

HCL Technologies Releases Conference Call Recording Post Financial Results

HCL Technologies Limited announced that the audio recording of its recent conference call, held on October 13, 2025, following the release of its financial results for the quarter and half-year ending September 30, 2025, is now available on its website. This move ensures transparency and accessibility for stakeholders, allowing them to review the company’s financial performance and strategic discussions.

HCLTech Partners with MIT Media Lab for AI Innovation

HCLTech has announced a collaboration with the MIT Media Lab in the US to advance next-generation AI research. This partnership will allow HCLTech to engage with MIT’s research community, enabling the co-development of AI projects that aim to produce impactful and scalable solutions. The collaboration underscores HCLTech’s commitment to pioneering advancements in AI and other emerging technologies, such as quantum computing, potentially enhancing its industry positioning and offering significant implications for stakeholders.