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HCL Technologies Limited (IN:HCLTECH)
:HCLTECH
India Market
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HCL Technologies Limited (HCLTECH) AI Stock Analysis

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IN:HCLTECH

HCL Technologies Limited

(HCLTECH)

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Outperform 78 (OpenAI - 5.2)
Rating:78Outperform
Price Target:
₹1,553.00
▲(22.22% Upside)
Action:Reiterated
Date:08/04/26
The score is led by high financial quality—low leverage, strong ROE, and solid profitability—offset by slower TTM revenue growth and some margin/cash-conversion pressure. Technicals show a strong trend but overbought conditions raise near-term risk, while valuation is supported by a strong dividend yield alongside a moderate P/E.
Positive Factors
Low Leverage / Strong Balance Sheet
Very low debt-to-equity (~0.07) and a sizable equity base materially reduce balance-sheet risk and financing vulnerability. Over 2-6 months this supports capital allocation flexibility for capex, buybacks or M&A and shields operations during cyclical slowdowns, underpinning durable stability.
Negative Factors
Slowing Revenue Growth
Revenue growth slowing to low single digits signals market maturation and tougher competitive dynamics. Over the medium term this limits operating leverage and constrains organic expansion unless offset by higher-value services or successful go-to-market shifts, raising execution demands on management.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Strong Balance Sheet
Very low debt-to-equity (~0.07) and a sizable equity base materially reduce balance-sheet risk and financing vulnerability. Over 2-6 months this supports capital allocation flexibility for capex, buybacks or M&A and shields operations during cyclical slowdowns, underpinning durable stability.
Read all positive factors

HCL Technologies Limited (HCLTECH) vs. iShares MSCI India ETF (INDA)

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
Strong overall quality with low leverage (debt-to-equity ~0.07) and solid returns (ROE ~24%). Profitability remains healthy (TTM net margin ~13%, EBIT margin ~17%), but revenue growth has slowed (+3.2% TTM) and margins/cash conversion have softened versus prior periods, tempering the score.
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
74
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.35T1.30T1.18T1.11T1.03T871.90B
Gross Profit350.50B306.15B413.06B396.71B376.07B334.76B
EBITDA265.57B273.26B271.41B249.01B231.65B206.86B
Net Income175.05B166.42B174.37B157.98B150.90B137.23B
Balance Sheet
Total Assets1.12T1.16T1.05T997.15B934.11B892.26B
Cash, Cash Equivalents and Short-Term Investments251.21B303.85B287.62B271.72B201.01B189.17B
Total Debt51.84B52.15B62.79B57.66B47.81B63.56B
Total Liabilities382.68B410.61B358.64B315.05B280.04B270.89B
Stockholders Equity734.69B751.65B696.10B682.02B654.05B620.46B
Cash Flow
Free Cash Flow180.05B197.78B224.24B214.00B163.48B152.55B
Operating Cash Flow194.24B213.59B235.32B224.48B180.09B169.00B
Investing Cash Flow19.29B-29.03B-49.14B-67.23B-39.31B14.77B
Financing Cash Flow-212.15B-193.23B-185.61B-154.64B-158.81B-145.08B

HCL Technologies Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
₹3.65T20.834.72%12.59%2.65%
76
Outperform
₹8.56T17.194.92%7.70%1.07%
74
Outperform
₹4.59T14.454.61%5.76%12.64%
67
Neutral
₹1.29T26.782.80%13.87%10.72%
67
Neutral
₹1.82T14.546.21%6.40%-1.86%
65
Neutral
₹1.62T28.503.27%10.95%12.97%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:HCLTECH
HCL Technologies Limited
1,362.10
-55.98
-3.95%
IN:INFY
Infosys Limited
1,170.00
-237.29
-16.86%
IN:LTIM
LTIMindtree Limited
4,654.10
-387.33
-7.68%
IN:TCS
Tata Consultancy Services Limited
2,450.00
-490.10
-16.67%
IN:TECHM
Tech Mahindra Limited
1,650.00
217.38
15.17%
IN:WIPRO
Wipro Limited
187.00
-50.00
-21.10%

HCL Technologies Limited Corporate Events

HCL Technologies Posts Q1 FY27 Results Call Audio for Investors
Jul 13, 2026
HCL Technologies Limited has notified the stock exchanges that it has uploaded the audio recording of its July 13, 2026 conference call, held after the release of its financial results for the quarter ended June 30, 2026, on its investor-relations...
HCLTech Wins US$1.14 Billion AI-Driven Workplace and Network Deal
Jul 3, 2026
HCLTech has entered into a major strategic partnership with a Europe-headquartered Fortune Global 50 company to design and implement an AI-driven operating model for the client’s global digital workplace and enterprise networks. The engageme...
HCLSoftware Completes Acquisition of Jaspersoft from Cloud Software Group
Jul 2, 2026
HCL Technologies, via its HCLSoftware unit, has completed the acquisition of Jaspersoft, a business intelligence and reporting software business previously owned by Cloud Software Group. The deal, effective July 1, 2026, marks a further expansion ...
HCLTech Deepens Google Cloud–ServiceNow Alliance to Scale Enterprise AI Agents
Jun 25, 2026
HCLTech has expanded its collaboration with Google Cloud and ServiceNow to deliver enterprise AI agents on the Gemini Enterprise platform, aiming to deepen the integration of AI into core business systems and workflows. The initiative aligns with ...
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.Date of analysis: Aug 04, 2026