HCL Technologies Limited (HCLTECH) AI Stock Analysis

• Market Cap: ₹4.15T
• Dividend Yield: 2.99%
• Average Volume (3M): 116.99K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.99
• 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: ₹1,669.00
• Price Target Upside: 3.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹1,777.00 ▲(10.49% 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.

HCL Technologies Limited Business Overview & Revenue Model

Company Description

HCL Technologies Limited (HCLTECH) is a global IT services and consulting company headquartered in Noida, India. It operates in various sectors including IT services, enterprise transformation, engineering and R&D services, and digital solutions. HCLTECH offers a wide range of services such as application development and management, infrastructure management, cybersecurity, and digital consulting, catering to clients in industries like financial services, healthcare, manufacturing, and telecommunications.

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: 1608.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1608.3 is above the 20-day moving average (MA) of 1567.73, above the 50-day MA of 1496.25, and above the 200-day MA of 1543.65, indicating a bullish trend. The MACD of 37.78 indicates Negative momentum. The RSI at 60.72 is Neutral, neither overbought nor oversold. The STOCH value of 78.06 is Neutral, 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	₹10.82T	21.88	―	3.74%	3.62%	4.43%
LTIM	78 Outperform	₹1.67T	34.16	―	1.11%	8.72%	4.54%
INFY	76 Outperform	₹6.10T	21.63	―	2.91%	7.90%	4.28%
HCLTECH	73 Outperform	₹4.15T	24.39	―	2.99%	7.52%	0.87%
WIPRO	71 Outperform	₹2.56T	18.95	―	4.50%	1.10%	14.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TECHM	55 Neutral	₹1.38T	27.80	―	3.08%	3.30%	36.78%

HCL Technologies Limited Corporate Events

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.

HCL Technologies Publishes Regulatory Disclosure Advertisement

HCL Technologies Limited has announced the publication of a newspaper advertisement in compliance with Regulation 30 of the SEBI Listing Regulations. The advertisement was published in both English and Hindi newspapers, namely Mint and Hindustan, and is available on the company’s website. This disclosure is part of HCL’s commitment to maintaining transparency and keeping stakeholders informed about its regulatory obligations.

HCL Technologies Grants RSUs to Employees Under New Plans

HCL Technologies Limited has announced the grant of Restricted Stock Units (RSUs) to eligible employees under its RSU Plan 2021 and RSU Plan 2024. A total of 16,17,961 RSUs have been granted, which will entitle the holders to equity shares of the company. This initiative is part of HCL’s strategy to incentivize and retain talent within the company and its subsidiaries. The RSUs will not lead to any dilution of earnings per share as no new shares will be issued; instead, shares will be acquired from the secondary market through a trust mechanism. This move is in compliance with SEBI regulations and reflects HCL’s commitment to aligning employee interests with company performance.

HCL Technologies Announces Equity Shares Transfer to Investor Fund

HCL Technologies Limited has announced the publication of a newspaper advertisement regarding the transfer of equity shares to the Investor Education and Protection Fund. This move is aimed at notifying shareholders about the transfer process, ensuring compliance with regulatory requirements, and maintaining transparency in shareholder communications.