HCL Technologies Limited (HCLTECH) AI Stock Analysis

• Market Cap: ₹3.63T
• Dividend Yield: 2.86%
• Average Volume (3M): 116.99K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.90
• Revenue Growth: 7.52%
• EPS Growth: 0.87%
• Country: IN
• Employees: 223,420
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 17.70
• 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: ₹1,788.50
• Price Target Upside: 4.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 64.07
• Revenue Forecast (FY): ₹1.30T

• Rating: 73 Outperform
• Price Target: ₹1,493.00 ▼(-13.00% Downside)
• Action: Reiterated Date: 11/16/25
• Date: Action: Reiterated 11/16/25

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

Cash generation

Operating cash conversion near parity with reported earnings and positive free cash flow growth indicate durable cash generation. This supports dividends, reinvestment in cloud/digital capabilities, and cushions the business through cycles without heavy reliance on external financing.

Healthy margins

Sustained mid-to-high teens net and double-digit EBIT/EBITDA margins reflect pricing power and efficient delivery across services. These margins provide structural ability to fund R&D, invest in talent and platforms, and absorb cyclical revenue dips while maintaining profitability.

Strong balance sheet

Very low leverage combined with high ROE and a solid equity base delivers financial flexibility for large contract bids, strategic M&A, and shareholder returns. A robust balance sheet reduces solvency risk and supports long-term investments in growth areas.

Negative Factors

Declining gross margin

A persistent decline in gross margin would signal structural pressure from pricing, service mix shifts toward lower-margin projects, or rising delivery costs. If sustained, margin erosion can reduce free cash flow and limit capacity to invest in strategic capabilities and talent retention.

Rising debt trend

Although leverage is low today, an upward debt trajectory reduces financial flexibility over time. Continued increases could raise interest costs and constrain capital allocation choices, limiting ability to fund acquisitions or withstand prolonged revenue weakness without cutting investment.

Moderate revenue & EPS growth

Top-line expansion appears moderate with recent TTM growth under 3% and negative EPS growth, suggesting demand or margin pressures. Slower growth can hamper scale benefits in higher-margin digital services and limit long-term earnings upside versus faster-growing peers.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Negative
• Last Price: 1716.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HCLTECH, the sentiment is Negative. The current price of 1716.15 is above the 20-day moving average (MA) of 1553.14, above the 50-day MA of 1614.68, and above the 200-day MA of 1559.78, indicating a bearish trend. The MACD of -68.02 indicates Positive momentum. The RSI at 17.48 is Positive, neither overbought nor oversold. The STOCH value of 14.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹9.31T	19.52	―	3.55%	3.62%	4.43%
HCLTECH	73 Outperform	₹3.63T	22.04	―	2.86%	7.52%	0.87%
INFY	73 Outperform	₹5.18T	18.88	―	2.70%	7.90%	4.28%
WIPRO	68 Neutral	₹2.10T	15.79	―	4.05%	1.10%	14.83%
LTIM	66 Neutral	₹1.33T	28.03	―	1.08%	8.72%	4.54%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TECHM	55 Neutral	₹1.32T	25.78	―	2.76%	3.30%	36.78%

HCL Technologies Limited Corporate Events

HAESL Taps HCLTech to Digitally Transform Aviation Maintenance Operations

HCLTech has been selected by Hong Kong Aero Engine Services Limited (HAESL) to implement its iMRO/4 asset management solution, integrated with SAP S/4HANA, as HAESL’s new Maintenance Execution System in Hong Kong. The collaboration is aimed at digitally transforming HAESL’s engine maintenance, repair and overhaul operations by streamlining processes, improving scalability, enabling real-time data visibility and end-to-end traceability, and integrating maintenance with finance and material planning. Executives from both companies said the partnership will enhance execution efficiency, optimize resource utilization, support regulatory compliance, and create a scalable digital foundation, positioning HCLTech as a key technology partner in aviation MRO and reinforcing HAESL’s push toward operational excellence and long-term growth.

HCL Technologies to Engage Investors at Multiple Mumbai Conferences in February 2026

HCL Technologies Limited has announced that it will participate in several major investor conferences in Mumbai during February 2026, including the Nuvama India Conference 2026, Kotak: Chasing Growth 2026, and IIFL’s 17th Enterprising India Global Investors’ Conference. Company executives are expected to attend group sessions and may also hold one-on-one meetings with investors, while affirming that no unpublished price sensitive information will be disclosed, underscoring the firm’s commitment to regulatory compliance and proactive engagement with the investment community.

Team Global Express Picks HCLTech as Sole IT Partner for AI-Led Logistics Transformation

HCLTech has signed a new strategic agreement with Team Global Express, the largest multimodal logistics provider in Australia and New Zealand, under which it will consolidate the logistics group’s previously fragmented, multi-vendor IT environment into a single partnership. HCLTech will provide end-to-end managed IT services spanning applications, hybrid cloud infrastructure, networks, cybersecurity, digital workplace and service management, deploying its GenAI-driven AI Force platform to automate operations, improve compliance and enhance customer experience, reinforcing its positioning as a key technology partner for large-scale enterprise transformation in the logistics sector.

HCLTech Named Leader in IDC MarketScape for Managed SASE Services 2025

HCLTech has been recognized as a Leader in the IDC MarketScape: Worldwide Managed SASE Services 2025 Vendor Assessment, underscoring its strength in secure access service edge (SASE) solutions. The designation reflects the company’s extensive multivendor ecosystem, strategic partnerships with telecom operators and OEMs, and its proprietary platforms that provide unified observability, AI-driven orchestration and automation across SD-WAN and SSE environments. Supported by a global delivery network, dedicated labs and consulting-led frameworks, HCLTech aims to reduce deployment risk and accelerate time-to-value for clients, while integrating SASE into Zero Trust strategies to enhance security alignment with business goals and bolster its competitive position in the managed network security market.

HCLTech Publishes Q3 FY26 Earnings Call Transcript for Investors

HCL Technologies Limited has notified the Indian stock exchanges that it has released the official transcript of its earnings conference call held on 12 January 2026, following the announcement of its financial results for the quarter and nine months ended 31 December 2025. The transcript, featuring remarks from the CEO, CFO and head of investor relations, is available to investors and the public on the company’s investor relations website, reinforcing disclosure and compliance with SEBI listing regulations and providing stakeholders with detailed insight into management’s commentary on recent financial performance.

HCL Technologies Uploads Earnings Call Audio After Q3 FY2025 Results

HCL Technologies Limited has notified the stock exchanges that the audio recording of its conference call held on January 12, 2026, following the announcement of its financial results for the quarter and nine months ended December 31, 2025, has been made available on the company’s investor relations website. The disclosure aligns with regulatory requirements and enhances transparency for investors and analysts by providing direct access to management’s commentary and discussion of the latest financial performance.

HCL Technologies Revises Interim Dividend Record Date to January 17, 2026

HCL Technologies Limited has announced a change in the record date for its recently declared interim dividend, shifting it from January 16, 2026 to January 17, 2026. The adjustment follows a directive from the stock exchanges, which required the change due to a trading holiday on January 15, 2026 for Municipal Corporation elections in Maharashtra. The company confirmed that while the record date has been moved by one day, the dividend payment date of January 27, 2026 remains unchanged, providing clarity and continuity for shareholders tracking their eligibility for the interim payout.

HCLTech Wins Multi-Year Deal to Build AI-Driven IT Backbone for Magnum Ice Cream

HCLTech has signed a multi-year partnership with The Magnum Ice Cream Company, the world’s largest ice cream company, to design, build and manage a future-ready, AI-enabled IT infrastructure as Magnum transitions into an independent listed business. Using its AI Force platform, HCLTech will embed AI across Magnum’s digital foundation, drive a shift from AIOps to a NoOps operating model with zero-touch automation and autonomous IT operations, and support Magnum’s exit from its Transition Service Agreement with Unilever by creating a greenfield infrastructure. The collaboration underscores HCLTech’s capabilities in large-scale, complex global transformations in the consumer-packaged goods sector and is positioned to enhance Magnum’s operational excellence and customer experience while reinforcing HCLTech’s industry standing in AI-driven infrastructure modernization.

HCL Technologies Grants 25,260 RSUs to Employees With No EPS Dilution

HCL Technologies Limited has granted a total of 25,260 restricted stock units (RSUs) to selected employees under its 2021 and 2024 RSU plans, with 601 RSUs allotted to one employee under the 2021 plan and 24,659 RSUs to five employees of the company and its subsidiaries under the 2024 plan. Each RSU corresponds to one fully paid equity share of ₹2, to be sourced entirely from shares acquired by a trust in the secondary market, ensuring no new share issuance and therefore no dilution of earnings per share. The RSUs will vest between January 2027 and June 2028, with a six-month exercise window post-vesting, and the company also cancelled 23,925 RSUs previously approved under the 2024 plan, indicating an active calibration of its equity-based compensation structure while remaining compliant with SEBI’s share-based employee benefit regulations.

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.