HCL Technologies Limited (IN:HCLTECH)
:HCLTECH
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HCL Technologies Limited
(HCLTECH)
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Rating:70Outperform
Price Target:
₹1,231.00
▼(-28.27% Downside)
Action:Reiterated
Date:04/23/26
The score is driven primarily by strong financial quality (especially a low-leverage balance sheet) and a supportive dividend yield, partially offset by near-term profitability/cash-conversion pressure in 2026 and clearly bearish technical signals (price below key moving averages with negative MACD).
Positive Factors
Conservative Balance Sheet
Sustained very low leverage gives HCLTech long-term financial flexibility to fund investments, absorb cyclical slowdowns, and maintain dividends without relying on volatile debt markets. This durable strength reduces default risk and supports strategic M&A or capex when opportunities arise.
Negative Factors
Margin Compression
Declining margins, even with revenue growth, suggest rising cost pressure, pricing mix headwinds, or increased investments not yet translating to returns. Persistent margin erosion would reduce free cash flow, limit reinvestment and dividend capacity, and pressure long-term profitability sustainability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Sustained very low leverage gives HCLTech long-term financial flexibility to fund investments, absorb cyclical slowdowns, and maintain dividends without relying on volatile debt markets. This durable strength reduces default risk and supports strategic M&A or capex when opportunities arise.
Read all positive factors
HCL Technologies Limited (HCLTECH) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.15T
Dividend Yield2.86%
Average Volume (3M)116.99K
Price to Earnings (P/E)18.8
Beta (1Y)0.88
Revenue Growth11.18%
EPS Growth-4.28%
CountryIN
Employees223,420
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)62.66
Shares Outstanding2,713,665,000
10 Day Avg. Volume160,014
30 Day Avg. Volume116,991
Financial Highlights & Ratios
PEG Ratio-5.19
Price to Book (P/B)4.83
Price to Sales (P/S)2.79
P/FCF Ratio18.37
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,267.50Price Target Upside-26.14% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)71.71
Revenue Forecast (FY)₹1.41T
HCL Technologies Limited Business Overview & Revenue Model
Company Description
HCL Technologies Limited, founded in 1976 and based in Noida, India, is a global technology firm that provides a comprehensive range of services, including software development, business process outsourcing, and infrastructure management. The comp...
How the Company Makes Money
HCLTech primarily makes money by selling IT services to enterprise customers under multi-year contracts that are billed as time-and-materials (based on hours and skill levels) and/or fixed-price/outcome-based arrangements (priced to deliver define...
HCL Technologies Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.23T | 1.30T | 1.18T | 1.11T | 1.03T | 871.90B |
| Gross Profit | 424.23B | 306.15B | 413.06B | 396.71B | 376.07B | 334.76B |
| EBITDA | 266.79B | 273.26B | 271.41B | 249.01B | 231.65B | 206.86B |
| Net Income | 170.59B | 166.42B | 174.37B | 157.98B | 150.90B | 137.23B |
Balance Sheet | ||||||
| Total Assets | 1.09T | 1.16T | 1.05T | 997.15B | 934.11B | 892.26B |
| Cash, Cash Equivalents and Short-Term Investments | 299.29B | 303.85B | 287.62B | 271.72B | 201.01B | 189.17B |
| Total Debt | 67.69B | 52.15B | 62.79B | 57.66B | 47.81B | 63.56B |
| Total Liabilities | 372.93B | 410.61B | 358.64B | 315.05B | 280.04B | 270.89B |
| Stockholders Equity | 712.73B | 751.65B | 696.10B | 682.02B | 654.05B | 620.46B |
Cash Flow | ||||||
| Free Cash Flow | 213.98B | 197.78B | 224.24B | 214.00B | 163.48B | 152.55B |
| Operating Cash Flow | 226.63B | 213.59B | 235.32B | 224.48B | 180.09B | 169.00B |
| Investing Cash Flow | -39.46B | -29.03B | -49.14B | -67.23B | -39.31B | 14.77B |
| Financing Cash Flow | -189.37B | -193.23B | -185.61B | -154.64B | -158.81B | -145.08B |
HCL Technologies Limited Technical Analysis
Neutral
1716.15
Price Trends
1222.84
Negative
1332.96
Negative
1422.08
Negative
Market Momentum
-17.84
Negative
47.75
Neutral
81.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HCLTECH, the sentiment is Neutral. The current price of 1716.15 is above the 20-day moving average (MA) of 1160.22, above the 50-day MA of 1222.84, and above the 200-day MA of 1422.08, indicating a neutral trend. The MACD of -17.84 indicates Negative momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 81.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:HCLTECH.
HCL Technologies Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹7.98T | 16.20 | ― | 3.55% | 4.58% | 1.35% | |
70 Outperform | ₹3.15T | 18.78 | ― | 2.86% | 11.18% | -4.28% | |
69 Neutral | ₹4.57T | 14.40 | ― | 2.70% | 9.61% | 11.08% | |
67 Neutral | ₹1.19T | 23.62 | ― | 1.08% | 11.31% | 9.00% | |
65 Neutral | ₹1.42T | 26.68 | ― | 2.76% | 7.22% | 12.99% | |
65 Neutral | ₹1.92T | 14.52 | ― | 4.05% | 3.97% | 0.34% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
IN:HCLTECH
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HCL Technologies Limited Corporate Events
HCL Tech Posts Earnings Call Audio After FY26 Results
Apr 21, 2026
HCL Technologies Limited has notified the stock exchanges that it has uploaded the audio recording of its conference call held on April 21, 2026, following the announcement of its financial results for the quarter and year ended March 31, 2026. Th...
HCL Technologies Sets April 21 Date for FY 2026 Results and Investor Call
Apr 13, 2026
HCL Technologies Limited will announce its financial results for the fourth quarter and full financial year ended March 31, 2026, on April 21, 2026, after the close of Indian stock market trading. Following the release, the company’s senior ...
HCLFoundation Awards ₹24 Crore in 11th HCLTech Grant, Adds Water Category to CSR Focus
Mar 20, 2026
HCLFoundation, the corporate social responsibility arm of HCLTech, has announced the winners of the 11th edition of the HCLTech Grant, expanding its thematic focus to include a new Water category. The program continues to back innovative NGO-led p...
HCL Technologies’ Guarantee Released as HCL America Fully Repays USD Notes
Mar 19, 2026
HCL Technologies has announced that its U.S. step-down subsidiary HCL America Inc. has fully repaid the remaining balance of its 1.375% senior unsecured notes, originally totaling USD 500 million and issued in March 2021. The company previously bo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.